Econ 2020 Final

What is the definition of scarcity?

• A condition where supply is greater than demand.

• A condition where demand exceeds supply.

• condition in which unlimited resources meet limited wants.

• A condition in which unlimited wants meets limited resources.

What are the four factors of production?

• land, labor, capital, gold

• labor, water, land, gold

• entrepreneurship, land, capital, labor

• capital, oil, water, labor

What is an opportunity cost?

• Usually absent in a command economy.

• When goods are recycled into other goods.

• The next-best alternative given up in order to do something else.

• Only an issue when there is not a scarcity of goods and resources.

What is a rational economic decision?

• One in which there is no opportunity cost.

• One in which the benefits are unknown, but costs are low.

• One in which marginal benefits are greater than marginal costs.

• One in which marginal costs are greater than marginal benefits.

What is the primary purpose of job specialization?

• Regional self-sufficiency

• Increased marginal utility

• Increased consumer income

• Increased efficiency and productivity

In which economic system does the government own the means of production?

• traditional

• mixed

• market

• command

Which of the following best describes an increase in productivity?

• An increase in the number of resources needed for production.

• Overproducing and having more output than we need as a society

• Having enough resources for production

• Increasing output while using the same amount of input.

A company produced two products, X and Y.

All of the points represent possible

product output EXCEPT...

• A

• B

• C

• D

Investment in education, training, and skill development has been linked to...

• declining job satisfaction

• increasing earnings for workers

• growing financial instability

• decreasing political participation

According to this diagram showing the circular flow of goods and resources, where do individuals spend the income they earn?

• in the factor market

• in the product market

• in the capital market

• in individual households