EPF Final Exam Review

The basic economic problem that all individuals, businesses, governments, and nations must solve is...?

• Making sure everyone has a checking account

• Making sure all resources are totally used

• Satisfying unlimited wants with limited resources

• Updating jobs to keep up with the latest technology

Which is NOT a Factor of Production?

• Stocks

• Land/Natural Resources

• Labor

• Management/ Entreprenuer

Which is a characteristic of capitalism, where buyers and sellers freely engage in market transactions?

• Trade-off

• Competition

• Opportunity Cost

• Voluntary Exchange

A person who decides to open their own restaurant is known as...?

• Investor

• Entrepreneur

• Capital

• Laborer

Scarcity affects...?

• Only laborers

• Only entrepreneurs

• Only the government

• Everyone

Which is the most likely effect of increased competition on prices?

• Increased prices and poorer quality

• improved quality and lower prices

• No effect on price, but improved quality

• it destroys the market for that product

What is the Opportunity Cost, IF Mike chooses to stay home and study instead of going to see the new Marvel movie?

• Less study time

• More time with family

• Less time at home

• Seeing the Marvel movie

Which is NOT part of a MIXED Economy?

• All economic decisions made by the government.

• Buyers and sellers buy and sell through voluntary exchange

• Some government regulations exist

• There is private ownership of business

Which is NOT part of a Traditional Economy?

• Economic roles are passed down from one generation to another

• Very little if any technological innovation

• Clearly defined gender roles in the economy and culture

• Government makes all economic decisions

Which is most associated with a Command Economy?

• Economic goals set by the government

• Private ownership of businesses

• Healthy competition exists among businesses

• Inherited labor roles passed down like basket weaving