Gov't/Econ Final Exam

Scarcity always exist because

• stores cannot stock enough merchandise to keep up with the customer demand.

• factories sometimes have difficulty producing enough goods.

• there is not enough of all goods and services to satisfy everyone's needs and wants.

• natural disasters, such as hurricanes and floods, destroy all goods and property.

A theory or simplified representation that helps explain and predict economic behavior in the real world is

• laissez-faire.

• a hypothesis.

• an economic model.

• an economic school of thought.

A company's fleet of trucks represents which kind of factor of production?

• land

• labor

• capital

• machinery

The need to make choices arises because

• some things are not limited.

• shortages are a constant situation.

• everything that exists is limited.

• people need to share their resources.

The basic problem of economics is

• scarcity.

• shortages.

• lack of choice.

• overabundance of resources.

To an economist, a want is

• something you do not have.

• something you must have to survive.

• something other than a basic survival need.

• something most people have.

The four factors of production are the resources of land, labor, capital, and

• productivity.

• entrepreneurship.

• goods.

• services.

All economic choices involve

• trade-offs.

• shortages.

• destruction of resources.

• tax dollars.

A production possibilities curve helps determine

• factors of production.

• costs of production.

• all the opportunity costs and trade-offs that a business will face during a year.

• the maximum combination of foods and services that can be produced in a given time.

_____ includes crops, mineral deposits, and water.

• Land

• Labor

• Capital

• Money