Economics (Final Exam Pt.1)

What is economics?

• The study of how society manages its scarce resources

• The study of how to make money

• The study of how to start a business

• The study of how to manage personal finances

What does scarcity refer to?

• The unlimited availability of resources

• The limited availability of resources

• The equal distribution of resources

• The abundance of resources

Which of the following is NOT a PRIMARY Factor of Production but is still a resource and component of Economics?

• Land

• Labor

• Capital

• Entrepreneurship

What does an entrepreneur do?

• Takes risks to create and operate a business (combines land,labor,capital to create new goods and services)

• Invests in stocks and bonds

• Manages personal finances

• Works as an employee in a company

What is opportunity cost?

• The value of the next best alternative when a choice is made

• The total cost of all available options

• The cost of producing a good or service

• The cost of starting a business