Economics Final Exam Review

The value that a person or business misses out on when choosing one alternative over another is known as

• Opportunity cost

• Choice

• Trade-offs

• Price

Which of the following best describes scarcity?

• An abundant supply of something

• A decrease in value

• The physical space for producing goods

• A low supply of something that is in demand

Money and equipment are examples of which factor of production?

• Capital

• Land

• Labor

• Entrepreneurship

A philosophy that calls for very little or no government involvement in the economy.

• Industrial Capitalist

• Economics

• Supply and Demand

• Laissez-Faire

Labor refers to...

• people with all their efforts and abilities

• individuals who start a new business or bring a product to market.

• the tools, equipment, and factories used in production of goods and services.

• The "gifts of nature" or natural resources not created by human effort.

Entrepreneurs are...

• people with all their efforts and abilities

• individuals who start a new business or bring a product to market.

• The "gifts of nature" or natural resources not created by human effort.

• the tools, equipment, and factories used in production of goods and services

A herd of cattle is an example of ...

• Land

• Labor

• Entrepreneur

• Capital

A bulldozer is an example of...

• Labor

• Land

• Entrepreneur

• Capital

The opportunity cost of increasing production from 7 to 9 trucks is

• Scarcity
• 2 boats
• 2 trucks
• 3 boats

What is the production possibilities curve?

• a graph that shows how much an economy can produce between 2 goods
• how much money something is
• the opportunity one has to give up in order to gain something else
• land, labor, capital, entrepreneurs