Economics Final Exam Prep

What is the basic economic problem?

• Wants

• Needs

• Scarcity

• Consumers

All of the following are the three basic economic questions EXCEPT;

• Why to produce?

• What to produce?

• How will it be produced?

• For whom will it be produced?

Land, Labor, Capital and Entrepreneurship are collectively called;

• The basic economic problem

• Wants vs needs evaluation

• The factors of production

• Supply and demand

The benefits offered to encourage people to act in certain ways.

• Products

• Incentives

• Utility

• Needs

The benefit and satisfaction gained for the use of a good or service

• Needs

• Wants

• Incentive

• Utility

The alternative that you give up when you make an economic choice.

• Need

• Opportunity cost

• Trade off

• Cost-benefit analysis

The value of the next best alternative or what you give up by choosing one alternative over another.

• Trade off

• Opportunity cost

• Cost-benefit analysis

• Entrepreneurship

A economic model/graph used to illustrate the impact of scarcity on an economy by showing the maximum number of goods and services that can be produced using limited resources.

• Efficiency frontier

• Underutilization curve

• Production possibilities curve

• Cost-benefit analysis

What type of economics is the study of the behavior of individuals, families, and businesses in an economy?

• Microeconomics

• Macroeconomics

• Positive economics

• Normative economics

Who is known as the "Father of modern economics?"

• Joseph Stalin

• Sigmund Freud

• Thomas Hobbs

• Adam Smith