Cimarron HS Economics Final Review

What is Economics?

• The Study of how humans deal with scarcity

• The study of how money works

• The study of how to get rich

• The study of the stock market

What is scarcity

• The idea that humans have unlimited wants and needs and limited resources in which to fulfill them

• When a society does not have enough of a resource to fulfill their wants and needs

• When a society has far more of a resource than their people want,

• When people stop wanting a resource.

Scarcity and Shortage are the same thing

• True

• False

Diana, who is renting an apartment ($950.00 a month) and leasing a car ($275.00 a month) has managed to save $7000. She is trying to decide between using that money to put a down payment on a house ($1250.00 a month) or a car ($425.00 a month) but she knows she cannot afford both. If she decides to by the car, what is he opportunity cost?

• Buying the house

• $150 a month

• $7000

• $300 a month

What are the factors of production?​ ​ ​ (a)   ​ (b)   ​ (c)  

• Land
• Labor
• Capital
• supply
• demand
• transportation
• resources
• money
• scarcity

Which of the following examples describes and improvement in human capital?

• David has learned the most efficient method of tossing pizzas in the 3 years he has worked at Pizzapapolis.

• Anthony gets paid more because he has entered his 5th year on the job.

• Leia has moved into a new apartment

• Yessenia has hired 2 new employees at her law firm

What 2 factors drive the price of a good or service? ​ ​ ​ ​ ​​ (a)   ​ (b)   ​

• supply
• demand
• quality
• quantity
• style
• design
• shortage
• surplus

What does the Law of Supply say about higher priced items?

• Producer will be willing to produce more of them

• More people will want them

• Fewer people will want them

• producers will be willing to produce fewer of them

What does the Law of Demand say about higher priced items.

• Consumers will demand fewer of them

• Producers will be willing to produce more of them

• Producers will be willing to produce fewer of them

• Consumers will demand more of them

How might new technologies affect supply?

• By making production quicker and/or less expensive, supply will increase

• By making production more complicated, supply will decrease

• Technology has no effect on supply

• People with tech jobs get paid more, increasing demand, thereby increasing supply