Economics Final Review

What word to economists use for the idea that people have unlimited wants which exceed the limited resources they have to fulfill those wants?

• costs

• philanthropic

• scarcity

• sociology

Which economist and philosopher wrote during the Great Depression and in favor of government regulation of a capitalist economy?

• Adam Smith

• Karl Marx

• John Maynard Keynes

• Milton Friedman

The individual income tax is a(n)

• Proportional tax

• Regressive tax

• Progressive tax

• Excise tax

Money that has value simply because the government says it does is called

• credit

• representative money

• fiat money

• currency

How will the quantity demanded of gasoline be impacted by the price of gasoline?

• Price for gasoline remains constant as the demand increases.

• Demand for gasoline decreases as the price decreases.

• As the price of gasoline decreases, the quantity demanded increases.

• As the price of gasoline decreases, the quantity demanded decreases.

The unemployment rate has risen to 9.7% and both the Gross Domestic Product (GDP) and Consumer Price Index are declining. The government could promote economic growth and address this economic situation by

• decreasing government spending and lowering taxes.

• increasing government spending and lowering taxes.

• decreasing government spending and increasing taxes.

• increasing government spending and increasing taxes.

Outside effects on pricing tend to correct themselves automatically through

• government subsidies

• price floors

• supply and demand

• price ceilings

Which of the following best describes the consequence of government's role as a protector, provider, regulator, and consumer in the economy?

• The government has moved the U.S. economy to an entirely command economy.

• The U.S. free enterprise system has become more of a mixed economy.

• The U.S. free enterprise system has become increasingly stronger.

• The economy no longer serves to the benefit of the general welfare of the public.

WHAT ARE THE 4 FACTORS OF PRODUCTION?

• Land, Capital, Need & Want

• Land, Labor, Capital, Entrepreneurs

• Water, Air, Food & Shelter

• Land, Capital, Good & Service

The enterprising spirit that allows an individual to spot gaps in the market and take risks (including starting a business):

• Entrepreneurship
• Capital
• Land
• Labor