Economics Semester Check

A car is an example of a

• a. durable good.

• b. nondurable good.

• c. capital good.

• d. service.

Opportunity cost refers to

• a. the dollar amount attached to a good or service.

• b. the value of the next best alternative.

• c. the cost of not expanding production.

• d. the cost of labor when production is expanded or changed.

Economics is best defined as the study of how societies deal with

• a. the factors of production.

• b. the problem of scarcity.

• c. the paradox of wealth.

• d. the division of labor.

The three synonymous terms to describe the U.S. economic system are free enterprise, capitalism, and

• a. limited role of government.

• b. competition.

• c. free market.

• d. economic freedom.

Which of the factors of production involves taking risks and combining resources to produce a good or service?

• a. land

• b. capital

• c. labor

• d. entrepreneurs

The economic system of the United States is considered a

• a. free market capitalist economy.

• b. command economy.

• c. socialist economy.

• d. traditional economy.

Which is a good synonym for the word barter in the term barter economy?

• a. trade

• b. fiat

• c. specie

• d. monetary

How many distinct factors of production do economists recognize?

• a. one

• b. two

• c. three

• d. four

Consumers in a free enterprise economy ultimately determine

• a. when

• b. how

• c. what

• d. where

Which of these best describes the influence of high prices on the behavior of producers?

• a. They are an incentive for producers to produce more.

• b. They are an incentive for producers to buy less.

• c. They encourage producers to modify their supply schedules.

• d. They have no significant overall effect on producer behavior.