Economics Final Exam

What is Economics?

• The study of how people manage scarce resources

• The study of money

• The study of how money works

• The study of the stock market

What is a debit card?

• A card that provides money that you have in your bank account.

• A card that allows you to spend money based on credit or money you do not have.

• A card to spend whatever you want.

• A magic card.

Not being able to have all of the goods and/or services that you want because people have endless wants, but goods and services aren't endless. So people are forced to make choices.

• Scarcity

• Trade

• Standard of Living

• Human Resources

The desire or willingness a consumer has to purchase a good or a service is called?

• shortage
• supply
• price
• demand

The amount of goods or services available is called?

• supply
• demand
• producer
• consumer

A spending plan is called a

• Budget

• Tax

• Income

• Party

Individuals go into debt when they get a loan or buy something on credit. This debt must be paid back plus

• debit

• credit

• investment

• interest

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

• Need

• Opportunity cost

• Trade off

• Cost-benefit analysis