Economics Final Exam U1 & U2 Review

Economics is:

• a. The study of choices and how people will use scarce resources which have alternative uses.

• b. The study of money and business.

• c.

• d. The most exciting thing to Ms. T!

______________ arises because all resources are limited and can’t satisfy people’s unlimited wants!

• a. Benefits

• b. Scarcity

• c. Capital

• d. Utility

Which of the following is NOT a factor of production?

• a. Land

• b. Labor

• c. Capital

• d. Credit

Which of the following statements best describes the concept of "opportunity cost"?

• a. the money spent to produce goods and services

• b. the monetary value of goods and services

• c. the value of what must be given up to get something

• d. the cost of eliminating scarcity

Which of the following statements best describes land as a factor of production?

• Considered to be the human resource

• The “gifts of nature” or natural resources not created by human effort

• Risk-taking individuals who have the ability to start a new business or bring a product to market.

• 1. Tools, equipment, factories used in production.  It is the result of production.

Which of the following statements best describes labor as a factor of production?

• Considered to be the human resource

• The “gifts of nature” or natural resources not created by human effort

• Risk-taking individuals who have the ability to start a new business or bring a product to market.

• 1. Tools, equipment, factories used in production.  It is the result of production.

Which of the following statements best describes capital as a factor of production?

• Considered to be the human resource

• The “gifts of nature” or natural resources not created by human effort

• Risk-taking individuals who have the ability to start a new business or bring a product to market.

• 1. Tools, equipment, factories used in production.  It is the result of production.

Which of the following statements best describes entrepreneurs as a factor of production?

• Considered to be the human resource

• The “gifts of nature” or natural resources not created by human effort

• Risk-taking individuals who have the ability to start a new business or bring a product to market.

• 1. Tools, equipment, factories used in production.  It is the result of production.

Productivity is:

• Used by the Federal Reserve to regulate the nation’s money supply.

• Created by each state to preserve each state’s own identity.

• Dictated to each country of the world by the World Bank.

• A measure of efficiency that shows the number of outputs per unit of input

What is the Law of Increasing Productivity?

• As you produce less of any good, the opportunity cost will decrease

• Owning too many cats

• The Federal Reserve Bank is trying to decrease unemployment

• As you produce more of any good, the opportunity cost will increase