Economics Final Exam

What are the factors of production?

• Land, labor, capital, entrepreneurship

• Land, needs, wants, capitals

• Rent, wages, interest, profit

• Land, labor, scarcity, entrepreneurship

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DOK 1

Factors of Production

In the production of loaves of bread, which best represents the factor 'land'?

• The flour used in the dough

• The retailer who sells the bread

• The oven used to bake the bread

• The entrepreneur who started the company

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DOK 1

Factors of Production

What is the person who takes the initiative to create or start a company, often risking their own money, called?

• Entrepreneur

• Human capital

• Natural resources

• Physical capital

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DOK 1

Factors of Production

Due to scarcity you must make decisions, when you make a decision what is your next best alternative called?

• Scarcity

• Trade-offs

• Opportunity costs

• Microeconomics

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DOK 1

Opportunity Cost & Tradeoffs

People’s education, skills/abilities, health, and motivation are all part of _________ capital.

• Physical

• Natural

• Financial

• Human

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DOK 1

Factors of Production

Due to scarcity you must make decisions, when you make a decision what are ALL of the possible alternative decisions you could have made called?

• Scarcity

• Trade-offs

• Opportunity costs

• Microeconomics

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DOK 1

Opportunity Cost & Tradeoffs

According to marginal analysis when should you make a decision?

• the decision is lawful.

• when the costs outweigh the benefits

• the producer makes a profit.

• when the benefits outweigh the costs

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DOK 1

Marginal Analysis

Which of the following best describes marginal benefit?

• The total benefit you get when you sell a good or service

• The additional expenses or effort you expend when performing on more action

• When scarce productive resources meet the needs of consumers

• The additional benefit you receive from performing one more action

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DOK 1

Marginal Analysis

Which of the following best describes marginal cost?

• The additional expenses or effort you expend when performing one more action

• The additional benefit you receive from performing one more action

• The total amount you pay for a good or service

• When consumers wants and needs exceed scarce productive resources

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DOK 1

Marginal Analysis

Which of the following is the best example of an implicit cost?

• The price of a movie ticket.

• The homework you could have completed instead of going to see a movie

• The cost of fuel to drive to the movie theater

• The cost of popcorn and a drink.

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DOK 2

Implicit Cost