Economics Final Review

A want is a...

• A thing necessary for survival

• A desire that can be satisfied by consuming a good or service

• Objects such as food, clothing and furniture

• Work that one person does for another

What is the difference between needs and wants?

• Needs are necessary for survival

• Wants and Needs are the same

• People can only have a limited number of wants

• Needs are wasteful

Economics is the study of...

• The study of how Governments control their people

• How to get rich quick

• How individuals and societies satisfy their unlimited wants with limited resources

• The history of money

Which option below is NOT one of the Four Factors of Production?

• Land

• Labor

• Wants

• Capital

Scarcity is...

• There is an abundance of resources

• Unlimited Wants

• Satisfaction gained from using a good or a service

• There are not enough resources

An Opportunity Cost is....

• The cost of an item at the store

• The value of something that is given up to get something else

• Trading one item for another

• Making a decision based on the best combination of costs and benefits

Incentives are...

• Benefits offered to encourage people to act in certain ways

• Punishments for spending too much money

• Bad choices that waste resources

• Satisfaction gained from using a product

A Production Possibility Curve is a graph used to illustrate...

• How much money a company can make

• The impact of scarcity on the maximum amount of goods that can be produced

• All of the resources a nation has to produce unlimited wants

• How resources are endless and wants are unlimited

What data is being represented in this Production Possibility Curve?

• Economic

  Growth

• Economic Decline

• Less Butter is being produced

• Fewer Guns are being produced

In order to use PPC's accurately they are based on 4 assumptions.

Which answer below is NOT a useful assumption for PPCs?

• All resources are fully employed

• Resources are fixed

• Up to 3 things can be produced at once

• Technology is fixed