Economics Final Exam Review Fall 2020

What determines the value of an item?

• The amount of goods that are produced.

• The capital required to build the factory.

• The unlimited wants of the consumers.

• The resources consumed in production.

Select the three economic questions.

• What should be produced?

• Who should receive the product?

• How should goods and services be created?

• When should we produced the products?

• Why should goods and service be produced?

Which of the following illustrates an opportunity cost?

• James has enough money to buy some stocks and a book.

• Alyssa does not have enough time to study for her test.

• Amir only has time to study or play basketball.

• Lydia does not have enough money to buy a new shirt.

Assessing opportunity cost involves

• making choices and deal with consequences.

• choosing consequences over rewards.

• reviewing past decisions and changing them.

• minimizing profit and loss.

The most common economic system in the world is a

• closed economy.

• command economy.

• mixed market economy.

• traditional economy.

How does a command economy differ from a mixed market economy?

• In a command economy, citizens have fewer property rights. In a mixed market economy, citizens have more property rights.

• In a command economy, citizens have more property rights. In a mixed market economy, citizens have fewer property rights.

• In a command economy, citizens own all public property. in a mixed market economy, the government owns all private property.

• In a command economy, citizens own all private property. In mixed market economy, the government owns all public property.

In a free enterprise system, consumers decide

• how to set prices.

• which goods to export.

• which services and products to buy.

• how to use materials.

According to the law of supply, price and quantity move

• in the same direction.

• in opposite directions.

• towards one another.

• from the same point away from each other.

Which statement best explains the law of supply?

• The quantity supplied by producers increases as prices rise and decreases as prices fall.

• The quantity supplied by producers decreases as prices rise d and increases as prices fall.

• The quantity supplied by consumers increases as prices rise and decreases as prices fall.

• The quantity supplied by consumers decrease as prices rise and increases as prices fall.

The amount of goods and services consumers want is called the

• count

• demand

• number

• supply