Economics Final Exam Review

GDP stands for ______ and is a measure of all goods and services made in a country in _____.

• Gross Domestic Product; 3 years

• Gross Determined Project; 1 year

• Gross Domestic Product; 1 year

• none of the above

The study of economics involves

• explaining how people deal with scarcity.

• studying how things are made, bought, sold and used.

• explaining how incomes are earned and how jobs are created.

• all of the above.

Which answer explains the phrase "There is no such thing as a free lunch"?

• A business that offers a deal will pass on the cost in other ways.

• Businesses rarely offer free items to customers.

• A business always expects its customers to pay for products and services.

• Businesses often ask customers to pay for others' lunches.

Economic growth can be achieved

• by acquiring more resources.

• through increasing population.

• with a technological advance.

• all of the above.

Which statement describes a disadvantage of a command economy?

• Items tend to be produced solely for the sake of profit.

• It cannot "change direction" easily if the need arises to do so.

• It does little to help the less advantaged obtain the goods and services they need.

• Nothing stops the government from producing things that people don't need or want.

Which point is currently not attainable?

• point c

• point E

• point A

• point F

What is the opportunity cost when this economy shifts production from point A to point B?

• 7 mobile phones

• 1 mobile phone

• 10 cameras

• none of the above

Which point represents inefficient use of an economy's resources?

• point C

• point D

• point E

• point F

Which of the following states an advantage of a traditional economy?

• Property rights are based on tradition.

• Creativity and original thought are rewarded.

• Everyone knows exactly what their role is.

• There's no bureaucracy to interfere with organizing the economy.

What kind of economy offers uniformity in wages regardless of individual productivity?

• all economies

• traditional economies

• command economies

• market economies