Economics Final Review

The struggle among sellers to attract consumers by offering the best products at the lowest prices is known as _ and best found in the _ economic system.

• competition; free enterprise

• voluntary exchange; socialist

• property rights; communist

• profit motive; free enterprise

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 is opportunity cost?

• the value of the next best option that is not selected when a choice is made.

• there is not enough of it.

• things people make to earn money.

• actions people do to earn money.

The economic problem is that

• resources are limited and wants are limited.

• resources are unlimited and wants are limited.

• resources are limited and wants are unlimited.

• resources are unlimited and wants are unlimited.

The opportunity cost of a good is

• its price in dollars and cents.

• the alternative goods forgone.

• the price of alternative goods foregone.

• none of the other options

A student decides to buy a ticket for a concert instead of buying a new shirt. What is the opportunity cost of buying the ticket?

• the concert

• the price of the ticket to the concert

• the shirt

• the time spent purchasing the ticket

In a free market, when more people decide they want a particular item

• prices go down, prompting an increase in quantity supplied

• prices go up, prompting an increase in quantity supplied

• prices go up , prompting a decrease in quantity supplied

• prices don’t change, resulting in a shortage

The free market is about

• cooperation between buyers and sellers

• businesses taking advantage of people

• competition between buyers and sellers

• planning and direction by experts

The Invisible Hand concept explains

• people and systems working together with no one directing them

• businesses taking advantage of customers

• helping those who are disadvantaged

• economic planning and direction by experts

Producers battling over who can make the most profit

• Market

• Competition

• Consumer

• Opportunity Cost