Economics Final Exam

Define economics:

• The study of how people get rich

• The study of government spending

• The study of balancing wants and needs

• The study of how people interact with the government

The basic economic problem is:

• Scarcity

• People

• Debt

• Money

when does scarcity occur?

• People run out of money

• Needs and wants outweigh limited resources

• A surplus of inventory

• Resources outweigh the needs and wants of the people

What is Opportunity Cost?

• A tax on a good

• Cost of another alternative

• The access to an opportunity

• The cost of an opportunity

A person who starts a business is called a what?

• Economist

• A shark

• Manger

• Entrepreneur

The study of Microeconomics is:

• Means small

• Examines the problems of the economy as a whole

• Means big

• Examines individual issues in the economy

Macroeconomics is:

• Means small

• Examines problems of the economy as a whole

• Means big

• Examines the individual issues of the economy

What are the three basic questions about economics?

Who are the people that buy and use products?

• Producers

• economists

• Firms

• Consumers

Who are the people the create things to be purchased?

• Producers

• Economists

• Firms

• Consumers