Economics Final Exam Quiz

Scarcity is best defined as

• The cost of the next best decision regarding limitations of time and money

• The fact that people have limited wants but unlimited resources

• The fact that people have unlimited wants but limited resources

• The opportunity cost of deciding between one tradeoff versus another

Economics may best be defined as a

• Scientific study of supply and demand

• Study of choices that are made with respect to a limited description of economic activities

• Study of choices people make in light of their desire for unlimited wants but the reality of limited resources

• Branch of sociology that examines the choice making process in light of supply and demand

Which of the following is the best definition of a need?

• The paradox of value

• A synonym for a want

• The tradeoff construed when measuring opportunity cost

• A fundamental necessity for life

One example of an entrepreneur is

• A writer who is hired by a film studio to adapt a novel into a screenplay

• A lawyer in a high profile law firm that specializes in business law

• An Olympic ice skater who later decides to join a professional ice show

• A computer engineer that starts their own social media company

What is the opportunity cost of a decision?

• The total cost of all the alternative decisions that could have been made

• The best possible way the question could have been decided

• The available, alternative ways that a person might have used their time

• The most desirable/ valued alternative forgone (given up) in light of the decision made

The fundamental problem facing all people is scarcity, which is defined as

• Unlimited needs, but limited wants

• Unlimited wants, but limited needs in order to satisfy those wants

• Unlimited wants, but limited resources to satisfy those wants

• The science of decision-making

All of the following are goods EXCEPT

• iPad

• television program

• desk

• shoes

All of the following would most likely be considered needs in the United States EXCEPT

• Food

• Water

• Breathable air

• Designer clothing

An office building is an example of

• Human capital

• Physical capital

• Entrepreneurship

• Labor

Which list contains the four factors of production?

• Land, labor, capital, entrepreneurial skills

• Labor, capital, economics, natural resources

• Land, labor, credit, entrepreneurial skills

• Labor, capital, productivity, renewable resources.