Business Economics Exam Review

_ is the study of how individuals and societies satisfy their unlimited wants with limited resources

• Opportunity Cost

• Cost-Benefit Analysis

• Economics

• Scarcity

_ is the situation that exists because wants are unlimited and resources are limited.

• Scarcity

• Economics

• PPC

• Water-Diamond Paradox

A _ is a physical object that can be purchased, such as food, clothing, and furniture. A _ is work that one person performs for another for payment.

• Service; Good

• Good; Service

• Consumer; Producer

• Producer; Consumer

• Cost; Benefit

Which of the following is NOT a question that results from scarcity?

• What will be produced?

• Where will it be produced?

• How will it be produced?

• For whom will it be produced?

The _ of a decision is 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

• Marginal Cost

Which of the following point represents an example of underutilization?

• Blue Point

• Yellow Point

• Purple Point

• Red Point

Which of the following point represents an example of an impossible production?

• Blue Point

• Yellow Point

• Purple Point

• Red Point

• Green Point

_ is the study of the behavior of individual players in an economy, such as individuals, families, and businesses.

_ is the study of the behavior of the economy as whole and involves topics such as inflation, unemployment, aggregate demand, and aggregate supply.

• Macroeconomics; Microeconomics

• Microeconomics; Macroeconomics

• Positive Economics; Normative Economics

• Normative Economics; Positive Economics

_ is a way of describing and explaining economics as it is, not as it should be.

_ is a way of describing and explaining what economic behavior ought to be, not what it actually is.

• Macroeconomics; Microeconomics

• Microeconomics; Macroeconomics

• Positive Economics; Normative Economics

• Normative Economics; Positive Economics

_ is an economic system in which families, clans, or tribes make economic decisions based on customs and beliefs that have been handed down from generation to generation.

• Command Economy

• Mixed Economy

• Stable Economy

• Traditional Economy