Economics Final Exam Review

A graph showing all the combination of goods/services that can be produced.

• A) Opportunity cost

• B) Supply and Demand

• C) Factors of Production

• D) Production Possibilities Curve

In simple terms, economics is all about

• A) Making money

• B) Making choices

• C) Scarcity

• D) Producing goods

All the resources used to produce other goods and services.

• A) Labor

• B) Natural Resources

• C) Capital Resources

• D) Opportunity Cost

In the Factor Market of the circular flow model in the free market, households provide ____________________, in exchange for _________________________ from businesses.

• A) Goods/Services; Revenue

• B) Land, Labor, Capital (Resources); Wages (Income), Rents, Interest

• C) Wages, Rents, Interest; Land, Labor, Capital

• D) Taxes; Transfer Payments

Which of the following is NOT an example of an economic goal of each economic system?

• A) Economic Efficiency

• B) Economic Shortages

• C) Economic Freedom

• E) Economic Growth and Innovation

Some of the basic needs that Socialism attempts to provide include

• A) Money, Goods/Services, Welfare

• B) Incentives, Competition, Factor Payments

• C) Housing, Healthcare, Education

• D) Collectives, Heavy Industry, Agriculture

TANF, Social Security, Unemployment, and Workman's Compensation are all examples of _______________________ paid to the poor, disabled, and retired.

• A) In-kind Benefits

• B) Voluntary Exchanges

• C) Free Riders

• D) Cash Transfers

There are several key characteristics of free enterprise which include (answer must contain ALL that are included)

• A) Profit Motive, Private Property Rights, Free Contract, and Competition

• B) Legal Equality, Welfare, Free Rider, Open Opportunity

• C) Private Sector, Cash Transfers, Voluntary Exchange, GDP

• D) Microeconomics, Open Opportunity, Poverty Threshold, Externality

What might be an example of a positive externality?

• A) Public Education

• B) Displacement of wildlife

• C) Pollution from a factory

• D) None of These

The three government outcomes of promoting economic strength (answer must include ALL three)

• A) High Employment, No Growth, Fluctuating Prices

• B) Low Employment, Economic Growth, Rising Prices

• C) High Employment, Economic Growth, Stable Prices

• D) Low Employment, No Growth, Stable Prices