Economics Final Review

The fundamental problem of all economics is?

• How to spend money

• How to make money

• opportunity cost

• Scarcity

What is the definition of scarcity?

• having infinite resources and modest desires

• having limited resources and modest wants

• having limited resources and unlimited wants

• having a higher demand of a good than a supply of the good.

Which of the following is an example of scarcity?

• having all the In-N-Out burgers you could ever want

• having no money

• having four hours of free time, but two activities that take three hours each

• giving up the larger pizza to save two dollars

Economics is the _____________

• study of how people satisfy their wants and needs through choices.

• study of what people use as money.

• study of how people make money.

• study of how people behave.

An opportunity cost is ______________

• the price you have to pay to have an opportunity.

• the penalty you take for not using all opportunities offered to you.

• the next best thing you could have done with a set of resources.

• all the things you could have done with your resources.

Which of the following is an opportunity cost of going to college?

• Making new friends.

• Having new experiences.

• Greater income potential.

• The money you would earn working 40 hours a week for minimum wage.

Which of the following is NOT A factors of production?

• Land

• Labor

• Liberty

• Entrepreneurs

• Capital

Which of the following pairs is a correct matching of a factor of production and an example of that factor?

• labor: cashier

• food: farmland

• liberty: cashier

• capital: money

Which of the following is a correct pairing of a factor of production and an example:

• food: burgers

• liberty: choice

• land: trees

• capital: money

Which of the following is a correct pairing of a factor of production and an example:

• land: people

• labor: horses

• capital: forklift

• food: tacos