Economics Final Review

Land, labor, capital, and entrepreneurs are the

• results of supply and demand

• production outputs

• factors of production

• basic economic problems

Economics can best be defined as the study of

• efficiency and the utilization of scarce resources

• money and finance

• goods and services

• government intervention in business

An economic model/graph used to illustrate the concept of opportunity cost is

• the circular flow model

• the business cycle

• the production possibilities frontier

• a supply and demand curve

Which concept describes the relationship between peanut butter and jelly?

• They are complements.

• They are substitutes.

• One is an input of the other.

• They are interchangeable.

Which is NOT one of the three basic economic questions?

• What should be produced?

• How much should be produced?

• Who should it be produced for?

• How should it be produced?

GDP, or Gross Domestic Product, is a measure of

• the possible production combinations for a nation

• the number of people unemployed over the labor force

• the value of all goods and services produced in a nation in a year

• a nation's total exports

Which statement about scarcity is FALSE?

• Scarcity exists in all types of economies.

• Scarcity is the fundamental economic problem.

• Scarcity occurs because there are not an unlimited amount of resources.

• Scarcity only exists in poor countries.

Manufactured goods that go into a final product and therefore don't count into GDP are

• dependent goods

• intermediate goods

• consumer goods

• financial capital

What do points on the Production Possibilities Frontier represent?

• a society utilizing its resources inefficiently

• a society in a recession

• a command economy

• a society utilizing all available resources

A change in the cost of an input would shift which curve?

• SUPPLY

• DEMAND