Module 2 Exam

The Study of economics is primarily concerned with:

• Determining the most equitable distribution of society's output.
• Choices that are made in seeking to use scarce resources efficiently
• Demonstrating that capitalistic economics are superior to socialistic economies.
• Keeping private businesses from losing money

In this type of economy, production is determined by tradition, ritual, or custom.

• traditional economy
• free market economy (capitalism)
• mixed economy (socialism)
• command economy (communism)

Andy's two nephews want to travel to Philadelphia with him to see a show. Andy has two free plane tickets and three tickets to the show. Which of the following best describes the two plane tickets?

• A long-term benefit
• A short-term cost
• An opportunity cost
• A scarce resource

You are tired of chewing your gum in class, so you stick it under your desk. You would probably never do this to your desk at home. Which economics concept explains this?

• opportunity cost
• scarcity
• Tragedy of the Commons
• market economy

The Four Factors of Production are:

• Land, Labor, Capital, and Money
• Land, Labor, Capital, and Entrepreneurship
• Land, Capital, Technology, and Entrepreneurship
• Land, Capital,Entrepreneurship , Money

In this type of economy, the government gets involved in the economy but does not control all aspects.

• traditional economy
• free market economy
• mixed economy
• command economy

Use this image to answer the following question. Marcy's boss at Burger World said she has to work at least 12 shifts a week. What would be the most efficient number of college classes for her to take each week?

• Zero
• One
• Four
• Six

In this type of economy, there is the highest degree of consumer choice.

• traditional economy
• free market economy
• mixed economy
• command economy

You choose to complete your homework rather than watch television so that you can earn a good grade. You made the choice with the lowest

• opportunity cost
• demand
• scarcity
• benefit

To an economist, land means

• soil or dirt.
• how many acres a business owns.
• natural resources.
• entrepreneurship.