Economics Final Exam

What forces people to make choices?

• need for shelter
• scarcity of resources
• surplus of goods
• desire for profit

According to rational economic decision-making, we should accept an option when

• the costs outweigh the benefits
• there are no costs
• the benefits outweigh the costs
• there are no benefits

What economic concept claims that for every choice you make there is a cost?

• scarcity
• specialization
• economic interdependence
• opportunity cost

Economics is the study of

• how businesses compete against each other.
• how consumers respond to markets.
• how world markets interact.
• how people make decisions with limited resources.

Societies must choose how to

• transfer resources.
• limit resources.
• allocate resources.
• invest resources.

Which of the following is a method of allocating resources?

• First come, first served
• Lottery
• Equal for everyone
• All of the above

The stock exchange is an example of a

• service.
• market.
• capital good.
• allocation method.

What are the three economic questions?

• Who, what, where
• What to produce, how to produce, for whom to produce
• What to produce, how to produce, why to produce
• What to make, when to make it, for whom to make it for

In a command economy, who answers the three economic questions?

• consumers
• producers
• the government
• businesses

Which of the four represents the four factors of production?

• natural resources, capital, entrepreneurship, labor
• capital goods, services, government, entrepreneurship
• labor, capital, services, natural resources
• needs, wants, goods, and services