Economics Sem. 1 Finals Review

Which of the following accurately describes the economic principle of TINSTAAFL?

• Nothing in life can really be paid for in anything except concrete currency like gold or silver

• Nothing in life is truly free because money is an abstract construct

• Nothing in life is truly free because someone, somewhere down the line has paid for it

• Everything in life is actually free because currency is an abstract construct

Which of the following is NOT one of the three basic economic questions?

• What to Produce

• When to produce it

• How to Produce it

• For Whom to produce it

Which factor of production is the gifts of nature that are not produced by man, but are needed to produce the things?

• Land

• Labor

• Capital

• Entrepreneurs

Which factor of production is the money or the manmade items needed to produce the things?

• Land

• Labor

• Capital

• Entrepreneurs

Which factor of production is the people, with all their efforts and abilities, needed to produce the things?

• Land

• Labor

• Capital

• Entrepreneurs

Which factor of production is the risk takers who have a new idea to make a new thing to sell?

• Land

• Labor

• Capital

• Entrepreneurs

What is a market economy?

• Economic system in which supply, demand, and the price system help people make economic decisions

• An economic system with a central authority that makes the major economic decisions

• An economic system in which the allocation of scarce resources and other economic activities are based on ritual, habit, or custom

• An economic system that has some combination of command, traditional, and market economies

What does a PPF Curve represent?

• The min. combinations of goods and services an economy can produce when resources aren't used

• The max. combinations of goods and services an economy can produce when all resources are used

• All the quantities of an item people are willing and able to buy at various prices

• All the quantities people are motivated to make at various prices

Which of the following are metrics we use to determine the success of a country's economic system? (check all that apply)

• Economic Freedom

• Economic Equity

• Price Stability

• Economic Efficiency

Which of the following is NOT a metric that we use to analyze a country's economy?

• Full Employment

• Economic Security

• Economic Enhancement

• Economic Growth