Econ Final Exam

The cost of the next best choice or alternative

• scarcity
• opportunity cost
• voluntary exchange

Unlimited wants and limited resources

• scarcity

• opportunity cost

• voluntary exchange

People rely on others to provide goods and services

• Self-Sufficiency

• Interdependence

Supply is greater than demand

• surplus
• shortage

Demand is greater than supply

• surplus
• shortage

 Identify which of the following is not one of the questions we have to answer in Economics.

• what to produce
• how to produce
• who produces what
• for whom to produce

Identify the factor of production that people supply to businesses in exchange for wages

• land

• labor

• capital

• entrepreneur

What is a basic component of capitalism besides limited government, freedom of enterprise, and competition?

• Division of labor

• Mass production

• Property rights

• Capital goods

Which economic system is based on production of goods using customs and habits?

• Command

• Free enterprise

• Mixed

• Traditional

What do businesses provide for consumers according to the circular flow model?

• goods and services

• only goods

• only services

• taxes