Independent Living Final Exam Review

Which of the following is NOT considered a natural resource used in the production of goods and services?

• Water

• Trees

• Money

• Oil

What is described as the mismatch of unlimited wants and needs against limited economic resources?

• Economic disparity

• Basic economic problem

• Market fluctuation

• Resource allocation

Which type of economy is characterized by consumer-driven decisions on what goods to produce?

• Command economy

• Traditional economy

• Market economy

• Mixed economy

What tends to happen to a product's price when there is heavy competition in the market?

• The price increases

• The price remains stable

• The price decreases

• The price is regulated by the government

Which of the following is considered a capital resource?

• A pickup truck

• A factory

• Lumber

• Employees

The value of the next-best alternative that you did not choose is called:

• Tradeoff

• Scarcity

• Opportunity cost

• Economic cost

When a country decides to focus on advanced technology and a skilled labor force, it is primarily answering which of the basic economic questions?

• What to produce?

• How to produce?

• Which needs to satisfy?

• Which wants to satisfy?

Personal economic freedom is most limited in a:

• Command economy

• Market economy

• Mixed economy

• Traditional economy

Which of the following is NOT a characteristic of a capitalistic economy?

• Freedom of choice

• Government ownership of resources

• The profit motive

• Competition among businesses

Which of the following is a consumer?

• A business

• An individual

• The government

• All of the above are consumers