Econ Final Spring 2024

Societies are faced with which three basic questions about production of goods?

• what, how, and why
• what, where, and when
• what, how, and for whom
• when, where, and for whom

The definition of Scarcity is..

• An unlimited amount of resources to meet limited wants and needs
• When people use time and energy to create event
• A limited amount of resources to meet unlimited wants and needs.
• a city where individuals commit themselves to unlimited wants and needs

A popular bakery has only a few ingredients left to make their products. They could bake muffins or cookies, but they can’t make both. The bakers decide to make cookies for their customers. What is the opportunity cost of their decision?

• cookies

• muffins

• pies

• time

The study of how individuals, businesses, governments, and societies manage, distribute, and use limited resources is called:

• Opportunity cost
• Economics
• Scarcity
• Capitalism

Factors of production such as water, sunlight, oil, timber, and minerals, are called:

• Human
• Natural
• Capital
• Indirect

In which type of economic system are the factors of production controlled and managed by the government?

• Command
• Market
• Mixed
• Traditional

A common feature of the economic systems in the United States and Canada is that both allow people to own private property

• allow people to own private property

• restrict factory ownership to the government

• place a salary cap on business leaders' earnings

• use government quotas to determine what to produce

Which of the following summarizes the characteristics of a traditional economy?

• a central government controlling prices, jobs and resources
• diplomacy, labor participates in managerial decisions
• private ownership, social control of the division of labor, competition
• bartering, no competition, community sharing, relies on customs and culture

What determines the price of goods and services in a market economy?

• Government regulation
• Supply of the goods or services in the market
• Demand for the goods or services in the market
• The demand for the goods or services in the market and the supply of it

What does the production possibilities frontier display?

• the number of resources available in an economy
• the potential production of an economy with current resources
• the correct number of goods and services to produce in an economy