Econ Test 3

The dollar value of all final goods and services and the most comprehensive measure of a country's total production output is 

• standard of living
• financial capital
• cost benefit analysis
• Gross Domestic Product

The fundamental economic problem is 

• crime
• hunger
• scarcity
• opportunity cost

The four factors of production include

• land
• labor
• capital
• all the above

During a recession, which of the following is likely to occur?

• an increase in real wages
• an increase in production
• and increase in the GDP growth rate
• an increase in the unemployment rate

What is the definition of economics?

• The study of getting rich
• The study of people and choices
• Forecasts of how a certain market will do
• Study of the stock market

The resources used to make all goods and services are the

• production possibilities.
• factors of production.
• production trade-offs.
• opportunity costs.

Opportunity Cost is best defined as

• The best rejected alternative you give up when making a decision 
• The price you pay to purchase something 
• The benefit you gain by making a decision 
• The amount of debt you take on by making a decision 

People have limited resources, but unlimited ________.

• money
• wants and needs
• self-sufficiency
• stocks

What are the traits of a command economy?

• Make own goods, grow own food, barter, least used
• Has elements of two economic types
• Private ownership, free trade, competition, most used
• Government makes all economic decisions, communist countries

The type of government that has total control over the people and the police use power by force is called what?

• Anarchy

• Monarchy

• Limited

• Authoritarian