Econ Final Review Pt. 1

What is the study of how people seek to satisfy their needs and wants by making choices?

• Scarcity

• Sociology

• Economics

• Entrepreneurs

Which of the following is an example of a good?

• A barber or beautician cutting your hair

• A dentist cleaning your teeth

• A game system like The Nintendo Switch

• A moving company helping your move to your new crib

Answer explanation

Goods are material items that the customers are ready to purchase for a price.

Which of the following is an example of a service?

• A doctor operating on your shoulder

• A pair of Air Jordan Retro 10

• A play station 5

• A loaf of bread

Answer explanation

Services are the actions or activities that one person performs for another.

Which of the following is NOT a basic factor of production?

• Land

• Labor

• Capital

• Food

This is when there is limited quantities (amounts) of resources to meet unlimited wants

• Scarcity

• Entrepreneur

• Shortage

• Opportunity Costs

True or False. Scarcity is the same as shortage.

• True

• False

Answer explanation

Shortages are more temporary whereas Scarcity is more permanent

All the alternative we give up whenever we choose one course of action over another is called a

• decision

• trade-off

• choice

• entrepreneur

Answer explanation

Every decision we make involves a trade-off.

Example: you spending more time at work, you give up watching television or going to a movie.

The most desirable alternative given up as the result of our decision is called:

• Trade-off

• Good Decision

• Opportunity Cost

Answer explanation

your family decides to buy a new

computer, the cannot use the same to go on

vacation.

Using resources in such a way as to maximize the production of goods and services is known as

• Underutilization

• Growth

• Production Possibility Curve

• Efficiency

To an economist, what is cost?

• The alternative given up because of a decision

• How much money you have to pay for a good or service.