Economics Final 2024

Economics is the study of how people make choices about ways to use __________ resources to fulfill their unlimited wants and needs

• Limited

• Natural

• Man-made

• Unlimited

What are the factors of production?

• Land, Technology, Dirt, Resources

• Land, Labor, Capital, Entrepreneurship

• Land, Labor, Entrepreneurship

• Resources used in the production of only services

A teacher gives extra credit if a student completes a test study guide. This is an example of......

• Negative Incentives

• Freedom of Choice

• Voluntary Exchange

• Positive Incentives

The limited availability of resources is known as...

• Profit

• Opportunity Cost

• Voluntary Exchange

• Scarcity

Voluntary Exchange is the free and willing exchange of goods and services where both parties...

• Have no alternatives in exchange

• Mutually Benefit

• Are worse off

• Are forced to exchange with one another

A student must decide between going to the movies with friends or staying home and studying for a final exam. She chooses to stay home and study. Which economic concept describes going to the movies in this scenario?

• Comparative Advantage

• Income Effect

• Opportunity Cost

• Equilibrium Point

Which of the following is NOT a basic question of economic systems?

• How long should it be produced?

• What should be produced?

• For whom should it be produced?

• How should it be produced?

Which type of economy has the MOST government involvement?

• traditional economy

• mixed economy

• command economy

• market economy

What would be an example of capital resource?

• business owner

• water

• trees

• school building

An economic system that decides what to produce, how to produce, and for whom to produce according to long-standing customs is?

• free-market

• traditional

• command

• mixed