Economics Final Exam

In a free market society, the answer to the question about how much to produce is determined by —

• census data

• profit projections

• consumer demand

• government quotes

Tags

(A) 13.B

___?_______ are a vital engine of economic development creating some of the largest firms in the world as well as small businesses. ___?_______ prosper in economies where they have the freedom to start businesses and buy resources freely. Which factor of production completes the excerpt?

• Laborers

• Landlords

• Entrepreneurs

• Capital investors

The basic idea of choice presents which of the problems in economics?

• People get to decide what they want.

• Businesses can sell what they want.

• Decisions produce costs.

• Choice is a way of life.

Scarcity is a basic economic problem because —

• resources are limited

• governments limit production

• opportunity costs limit demand

• people have trouble making choices

Which of the following represents capital needed to start a tailoring or garment making business?

• Dressmakers

• Building space

• Marketing team

• Sewing machines

Paying rent instead of purchasing tickets to a concert is an example of —

• scarcity

• property rights

• opportunity cost

• circular flow model

Which market regulator is sometimes utilized by the government to protect market competition?

• Antitrust Laws

• Rationing Laws

• Excise tariffs

• Consumer boycotts

On a supply and demand graph, supply will increase if --

• There are fewer businesses in the industry.

• The number of businesses in the industry increases.

• Prices decrease.

• Production taxes decline over a short period of time.

Which of the following is a determinant of demand?

• Taxes

• Consumer preferences

• Number of sellers

• Product availability

Which of the following accounts for why countries specialize in particular trade products?

• Government regulations

• Variation in the size of markets

• Unequal distribution of resources

• Variety in the types of economic systems