Economics Final Review

What is the study of how individuals and societies satisfy their needs and wants with limited resources?

• Sociology

• Psychology

• Economics

• Anthropology

What does the term "scarcity" refer to in economics?

• Unlimited resources

• Demand for a good or service is greater than availability

• Surplus of goods

• Equal distribution of resources

What is "opportunity cost" in economics?

• The cost of the next best option you would have chosen when you make a decision

• The total cost of all options available

• The cost of the least preferred option

• The cost of the most expensive option

What is the main focus of microeconomics?

• The decisions of countries on how they distribute resources

• The decisions of individuals and firms on how they distribute resources

• The study of global trade

• The study of historical economic trends

Which of the following is NOT a factor of production?

• Land

• Labor

• Capital

• Consumption

What is human capital?

• Natural resources like property and renewable resources

• Employees and work hours

• The expertise, experience, skill, education, and knowledge of laborers

• Physical, man-made tools, machines, and resources involved in the production process

Which economic system is based on customary roles, goods, and services produced the way they’ve always been, often involving bartering or trade?

• Command

• Free Market

• Traditional

• Mixed

In which economic system does a centralized government control the production, distribution, and consumption of goods and services?

• Free Market

• Command

• Mixed

• Traditional

Who controls the production, distribution, and consumption of goods and services in a Free Market economy?

• Centralized government

• Private individuals

• Mixed entities

• Traditional roles

What type of economic system does the US have?

• Command

• Free Market

• Traditional

• Mixed