Economics Final Review

When deciding how to use resources, you need to evaluate the costs and benefits of each choice to decide which meets your criteria. When choosing, every alternative that you give up in that decision is called...

• resource frontiers.

• priorities.

• opportunities.

• trade-offs.

Which of the following people would be an entrepreneur?

• Someone that researches viruses in order to make vaccines for a major corporation.

• Someone that directs films for a major movie studio.

• Someone that owns and runs a lawn service that employs others.

• Someone that creates an organic hand sanitizer and sells it to a major corporation to produce.

Which of the following goods is in a shortage?

• Water when there are many farms that want to plant more almond trees.

• Roast beef sandwiches when turkey sandwiches are on sale.

• A bakery that puts it's leftover baked goods on sale at the end of the workday.

• Surgical masks when the production facilities that make them close down.

Equilibrium is reached when what occurs?

• price increases

• quantity supplied equals quantity demanded

• prices are inelastic

• there is no change in the quantity supplied

Which of these tends to force the price of an item upward?

• attainment of an equilibrium price for that item

• a surplus of that item

• a shortage of that item

• attainment of an equilibrium quantity of that item

Consumers are powerful because

• they help decide a business's opportunity costs.

• their interests force producers to behave ethically.

• they have more rights than corporations.

• they drive decisions about what to produce.

Scarcity is an economic problem with which all societies are faced.

• True

• False

In what type of economy does the government decide whether houses or apartments will be built?

• command

• traditional

• market

• mixed

There is always some degree of government involvement in a mixed economy.

• True

• False

If the government wants to discourage the production of a good, they can put a(n)___________ on the product.

• excise tax

• subsidy