Economics Final Exam Review

Any resources that are made by humans and used to create other goods and services are called

• services.

• production.

• capital.

• labor.

An example of a shortage is limited amounts of

• water available for irrigating a crop because it is used for other crops.

• labor available because the workers have other jobs.

• food available because the trucks carrying it are on strike.

• food available because few people want to buy it.

The resources used to make all goods and services are the

• production possibilities.

• factors of production.

• production trade-offs.

• opportunity costs.

Why are all goods and services scarce?

• Some goods cost more than others.

• All resources are scarce.

• Some things are needs and others are wants.

• Some people want to have more goods than others.

What is a factory building an example of?

• human capital

• physical capital

• an economic trade-off

• technology

How would you describe an economy that uses its resources to make the greatest possible number of goods and services?

• efficient

• using opportunity cost well

• globally aware

• underutilized

Which of the following makes someone an entrepreneur?

• earning a lot of money as a computer programmer

• becoming a highly paid dancer

• running a service that hires people to install sprinkler systems in lawns

• inventing and selling the rights to manufacture a computer game

You bought two new CDs with the last $30 in your checking account, and your next payday is on Monday. What is the opportunity cost of these CDs?

• the difference between the cost to produce the CDs and the price you paid for them

• $30

• dinner and a movie with your friends this Saturday night

• knowing you are the first of your friends to have these CDs

Which of the following lists would an economist consider to be land?

• factories, office buildings, assembly lines, workers

• farm fields, tractors, pesticides, fertilizers

• dams, bridges, rock quarries, oil wells

• iron ore, natural gas, fertile soil, water

Which of the following is an example of scarcity, rather than shortage?

• A popular toy is sold out during the busy holiday season.

• You have spent your last penny and payday is a week away.

• A person wants an endless supply of everything but cannot have it.

• Gasoline was rationed in America during World War II.