EL Economics Final Exam

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Gerald has a test tomorrow. He wants to study for 1 hour. He knows he can make $15 per hour babysitting, if he decides to study, what is his opportunity cost?

• $1
• $15
• $0

Scarcity shapes our understanding of economics because _____

• people can pursue capitalism
• entrepreneurship
• society has unlimited wants and limited resources

Read the headline from CNBC: Amazon hires 10,000 new employees during COVID-19. What were they expanding?

• land
• physical capital
• labor

"Econoville" is deciding on their economic system. The townspeople are divided into 2 groups. Which group wants a more of a command economy?

• Group A
• Group B

You have a choice between paying your water bill or buying a video game. If you choose to pay your water bill, you are…

• choosing a need over a want
• choosing a want over a need

Using resources in such a way as to maximize the production of goods and services is called:

• efficiency
• underutilization
• thinking at the margins

Entrepreneurs are people who

• help settle labor disputes
• work on the floor of the stock exchange
• put together land, labor, and capital to create new businesses

Each point on a production possibilities curve shows

• efficient utilization of resources
• the potential for future growth

What are the three main goals of the government in its attempt to keep the economy running smoothly?

• high interest rates, steady growth, and regulated prices
• high employment, steady growth, and stable prices