Economics Final Exam Review

___________________ forces us to make choices. It occurs because people have unlimited wants and limited resources.

• productivity

• scarcity

• opportunity cost

• capital

1. ______________, __________________, ____________________ & __________________ are known as factors of production. These are the resources that are scarce.

• land, specialization, labor, entreprenuership

• output, labor, capital, entrepreneurship

• land, labor, efficiency, entrepreneurship

• land, labor, capital, entrepreneurship

______________ refers to the work that individuals due for which they are paid.

• land

• labor

• capital

• entrepreneurship

______________ refers to both physical and human resources that businesses uses to produce a product.

• land

• entrepreneurship

• labor

• capital

________________ _______________________ is the thing that we give up when we make a choice. It is the next-best alternative.

• Rational decision

• opportunity cost

• our soul

• marginal benefit

1. A ________________ __________________ ____________________ occurs when the marginal benefits of a choice are greater than the marginal costs.

• darn good decision

• rational economic decision

• super fantastic realization

• production possibility shift

_________________________ happens when a person becomes an expert in one task or job. When workers do this, they work more efficiently.

• brilliance

• inefficiency

• specialization

• nirvana

________________________ is defined as the relationship between inputs and outputs. When output increases while using the same number of inputs, this will increase.

• specialization

• inefficiency

• scarcity

• productivity

Individuals own the means of production in a _____________________ economy.

• market

• traditional

• command

• barter

The government owns the means of production in a ________________ economy.

• market

• mixed

• command

• traditional