Economics/Personal Finance Final Exam Study Guide

Taking advantage of a worker's skills and allowing them to focus on a specific task

• specialization

• allocation

• consumer sovereignty

• voluntary exchange

When producers/consumers make choices, they should examine the 2nd best option

• incentive

• opportunity cost

• specialization

• scarcity

An acre of land, water and oil are examples of this type of resource

• capital

• entrepreneur

• natural

Basic problem of economics in which there are limited resources & unlimited wants

• demand

• opportunity cost

• scarcity

• product

Various ways an economy decides to distribute resources

• allocation

• efficiency

• voluntary exchange

• shared liability

Improvements in healthcare, education and production can lead to an improved overall well-being for citizens which is called

• standard of living

• rational decision

The study of the choices people make to satisfy their wants and needs

• macroeconomics

• economics

• GDP

• allocate

This shows the various combination of two products that could be produced with efficient use of resources and technology

• circular flow diagram

• consumer sovereignty

• supply/demand graphs

• production possibilities curve

Investment in training of workers will improve this type of resource

• capital resources

• natural resources

• entrepreneur

If the marginal benefit is greater or equal to the marginal cost, it can be assumed that the choice is a

• rational decision

• positive incentive

• standard of living

• voluntary exchange