Econ Final Exam review Questions 24-25

While the wants and needs of consumers are unlimited, productive resources are limited, forcing consumers and producers to make choices. This concept is known as

• borrowing

• surplus

• scarcity

• budgeting

Which of the following motivates entrepreneurs to take risk?

• credit score

• prices

• GDP

• profits

What are the factors of production?

• Land, labor, capital, entrepreneurship

• Land, needs, wants, capitals

• Rent, wages, interest, profit

• Land, labor, scarcity, entrepreneurship

Microeconomics focuses on 

• the economic impact of implementing fiscal and monetary policy.

• the on the big picture, looking at the economy as a whole.

• international trade and finance.

• small economic units, such as individuals, firms, and markets

Which description below best describes the relationship between opportunity costs and trade-offs?

• Trade-offs are the opposite of opportunity cost.

• Trade-offs decrease the opportunity cost of any decision.

• Opportunity costs occur when trade-offs are made.

• The opportunity costs of and trade-off is constant.

When one choice is made over another, the next best use of time, money, and/or resources is called a/an (a)  

In a command economy, the role of the government is to 

• Make major economic decisions

• Promote competition

• Encourage entrepreneurs

• Meet the needs and wants of consumers

Which of the following lists the three basic economic questions?

• What to produce, How to produce, Why to produce

• What to produce, When to produce, For whom to produce

• When to produce, How to produce, For whom to produce

• What to produce, How to produce, For whom to produce

Private ownership and voluntary exchange are characteristics of which type of economic system?


(a)  

An economy operating at its production possibilities frontier is

• experiencing slow economic growth.

• considered a command economy.

• experiencing high unemployment.

• Using resources efficiently.