Economics Final Review

What is the study of how individuals and societies use scarce resources to fulfill wants called?

• Biology

• Economics

• Chemistry

• Physics

Wants are desires satisfied by ________.

• goods/services

• money

• time

• effort

Scarcity means:

• There are enough resources to meet all wants.

• Not enough resources to meet all wants.

• All wants are satisfied.

• Resources are unlimited.

Which of the following is NOT one of the three basic economic questions?

• What will be produced?

• How will it be produced?

• Where will it be produced?

• For whom will it be produced?

Land, labor, and capital are known as ________.

• factors of production

• means of transportation

• types of government

• forms of energy

Scarcity is the limited nature of resources. How does scarcity force choices?

• It allows unlimited wants to be satisfied.

• It forces people to make decisions about how to use resources.

• It eliminates the need for decision-making.

• It increases the availability of resources.

An example of a trade-off and opportunity cost is:

• Choosing to study instead of going out with friends, where the opportunity cost is the fun missed with friends.

• Buying a new phone when your old one still works.

• Eating breakfast in the morning.

• Walking to school instead of taking the bus.

Which of the following lists the four factors of production?

• Land, Labor, Capital, Entrepreneurship

• Land, Money, Technology, Management

• Labor, Capital, Resources, Innovation

• Land, Labor, Technology, Organization

A PPC shows efficiency by:

• Showing all possible combinations of goods produced with available resources and technology.

• Indicating the level of unemployment in an economy.

• Displaying the total population of a country.

• Measuring the inflation rate.

What is the difference between goods and services?

• Goods are tangible items (e.g., food, cars), while services are intangible actions for others.

• Goods are intangible items, while services are physical products.

• Goods and services are both always tangible.

• Goods are only available online, while services are only available in person.