Basic Economics Final Review A

When economists speak of scarcity, they are referring to the...

• condition in which society is not employing all its resources in an efficient way

• condition in which people's wants outstrip the limited resources available to satisfy those wants.

• economic condition that exists in only very poor countries of the world

• condition in which society produces too many frivolous goods and not enough socially desirable goods

Produced goods used as inputs for the production of other goods comprise the resource known as

• Natural Resources

• Services

• Captial

• Entrepreneurship

Many years ago, chemists at 3M Corporation were trying to create a super-strong glue. Somehow they got their molecules twisted and came up with one of the weakest glues ever made. But, rather than pouring it down the drain, they tried coating some paper with it, and the "Post-It Note" was born. In this case, 3M was acting as a(n)...

• Utility

• Rationer

• Entrepreneur

• Abstraction

The headline in the newspaper reads "County Supervisors Debate Building New Schools." The headline relates closest to which economic concept?

• Goods and Bads

• Utility

• Choice

• Efficiency

Here are three things you could do if you do not attend your economics class: watch television with some friends (you value this at $25), read a good book (you value this at $17), or go to work (you could earn $20 during the economics class). The opportunity cost of going to your economics class is

• 20, This is the only alternative where you would receive money

• 17, This is the lowest value forfeited

• 25, This is the highest valued alternative forfeited

• 62, this is the total dollar sum of the three forfeited actions

Minerals, water, and forests are all considered to be part of the broad resource category known as

• Capital

• Entrepreneurship

• Labor

• Land

Microeconomics is the branch of economics that deals with

• highly aggregated markets or the entire economy

• the production side of the economy, exclusively.

• the buying side of the economy, exclusively.

• human behavior and choices as they relate to relatively small units: an individual, a firm, an industry.

The condition in an economy that makes a "rationing device" or "opportunity cost" a necessity is:

• the economy is organized around free markets.

• the economy is centrally planned by the government.

• scarcity exists.

• there are fewer types of goods than there are people in the economy

What is the most prominent rationing device you will likely find at your campus bookstore or other stores around town?

• Dollar Price

• Brute Force

• Anti-theft tags

• Coupons

In every economy, people vie for the economy's rationing device, a process called

• Competition

• Entreprenuership

• Marginal Benefit

• Positive Economics