Fundamentals of Economics Test

The condition in which there aren't enough resources available to produce everything that individuals need is__

• opportunity cost

• scarcity

• circular flow model

• choice

The value of goods and services that are given up in order to obtain an alternative good or service is__

• scarcity

• circular flow model

• choice

• opportunity cost

____ is the study of how individuals, businesses and governments make choices about what to produce and what to consume.

• History

• Government

• Economics

• Sociology

____ and ____ are the basic economic problems faced by every society.

• scarcity, choice

• freedom, oppression

• peace, unrest

• All are correct

Which of the following is an economic question that societies attempt to answer?

• For whom to produce?

• How to produce?

• What to produce?

• All are correct

The 4 factors of production are__

• education, finance, peers, family

• agriculture, manufacturing, livestock, machinery

• money, machines, animals, farming

• land, labor, capital, entrepreneurship

The visual represents which of the following?

• circular flow model

• production possibilities curve

• all are correct

• demand chart

The production possibilities curve is a visual representation of which concept?

• manufacturing

• technology integration

• opportunity cost

• cultural diffusion

Who wrote Wealth of Nations and is considered the Father of Capitalism?

• Thomas Sowell

• Friedrich Hayek

• John Maynard Keynes

• Adam Smith

How did John Maynard Keynes differ from many other economists of the 19th and 20th centuries?

• He advocated for a decreased role of government in the economy

• He advocated for an increased role of government in the economy

• He advocated for no government involvement in the economy

• All are correct