Econ Final Exam Review

What is the primary focus of economics?

• The study of weather patterns

• The study of producing and consuming goods and services

• The study of historical events

• The study of language and communication

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

• An abundance of resources

• A condition where resources are limited compared to wants

• The process of producing more goods

• The act of selling services

Which of the following is NOT a type of resource?

• Labor

• Money

• Capital

• Land

Which of the following best describes renewable resources?

• Resources that cannot be replaced

• Resources that can be replenished over time

• Resources that are always expensive

• Resources that require no effort to obtain

What is opportunity cost?

• The cost of making a decision

• What must be given up to get something else

• The total cost of all resources used

• The price of a product in the market

What does the production possibilities curve illustrate?

• The maximum number of goods produced at one time

• How goods and services can be combined using all resources

• The profit potential of different industries

• The total population of a country

If a country chose to produce twice as many wooden chairs as before, what might happen to its production of wooden tables?

• Production of wooden tables would increase significantly

• Production of wooden tables would remain the same

• Production of wooden tables would decrease

• Production of wooden tables would become irrelevant

What are the three basic economic questions every society must answer?

• What to produce, how much to save, who to hire?

• What should be produced, who should receive the product, how should goods and services be produced?

• How to produce, where to invest, when to sell?

• Who to tax, what to import, how to export?

What are the factors of production?

• Land, labor, capital, and entrepreneurs.

• Money, technology, resources, and consumers.

• Employees, managers, suppliers, and investors.

• Goods, services, markets, and needs.

In a command economy, who primarily makes economic decisions?

• Individual consumers.

• Local businesses.

• A central authority or government.

• International markets.