Economics Final Exam Spring 2022

__________: study of how people make choices on buying, selling, using, and distributing goods/services.

• A. Economics

• B. Consumer Science

• C. Opportunity Costs

What is a monopoly?

• A business that does not allow competition.

• A business that encourages competition.

• When supply exceeds demand.

• A risky investment.

What is an interest rate?

• The cost of doing business.

• Sales tax

• A factor of production

• The percentage you pay on a loan.

Which is NOT a factor of production?

• Land

• Labor

• Economic benefit

• Capital

Land, Labor, Capital and Entrepreneurship are collectively called;

• The basic economic problem

• Wants vs needs evaluation

• The factors of production

• Supply and demand

The benefits offered to encourage people to act in certain ways.

• Products

• Incentives

• Utility

• Needs

The value of the next best alternative or what you give up by choosing one alternative over another.

• Trade off

• Opportunity cost

• Cost-benefit analysis

• Entrepreneurship

What type of economics is the study of the behavior of individuals, families, and businesses in an economy?

• Microeconomics

• Macroeconomics

• Positive economics

• Normative economics

Economic system in which the government decides what goods and services will be produced and how they will be distributed.

• Traditional

• Command

• Market

• Untraditional

Economic system based on individual choice and voluntary exchange to direct economic decisions.

• Traditional

• Command

• Market

• Untraditional