Econ Unit 1 and 2 Final Review

What does the word "scarcity" mean?

• Being afraid to fail in an economy

• Employees dont have resources

• unlimited wants, but limited resources

• none of the above

What is opportunity cost?

• The monetary cost of something

• Options

• Unlimited wants for limited resources

• Second best choice

When is a decision considered rational?

• When the marginal benefit is greater than marginal cost

• When the cost is greater than the benefit

• When cost is at its maximum

• All of the above

Who answers the economic questions in a command economy?

• The market

• Producers

• Consumers

• Central Planners

What role is the government using to help people who do not have a job and are not getting paid?

• Economic Growth

• Economic Stability

• Economic Security

• Economic Decline

What is a mixed market economy?

• A very diverse county

• A market system with command and market components

• System where the government has no role

• all of the above

What is a trade barrier?

• Makes trading easier between countries

• Makes trading unattainable

• Only happens during wars

• Makes it harder for countries to trade with each other

If the governments buys tanks from a company, what market are they buying it in?

• Factor market

• product market

• households

• businesses

What market do you get a paycheck in?

• Product market

• factor market

• households

• businesses

When is a countries supply and demand in equilibrium?

• When demand is greater than supply

• When supply is greater than demand

• When supply and demand are equal

• None of the above