Economics Final

What is the fundamental problem of economics?

• How to keep consumers out of debt?
• How to figure out the way to make the most money?
• How do we ensure all people get a college education?
• How to fulfill our unlimited wants and needs with limited resources?

Opportunity Cost is best defined as Untitled Question

• The price you pay to purchase something
• The amount of debt you take on by making a decision
• The best rejected alternative you give up when making a decision
• The benefit you gain by making a decision

A person that takes a risk by starting a new business.

• capital goods
• human capital
• tariff
• entreprenuer

The difference between a good and a service is that:

• Services are available in unlimited quantities and goods are not
• Goods are available in unlimited quantities and services are not
• Goods are tangible and services are not
• goods help satisfy unlimited wants and services do not

Opportunity Cost is best defined as

• The benefit you gain by making a decision
• The price you pay to purchase something
• The best rejected alternative you give up when making a decision
• The amount of debt you take on by making a decision

What does a production possibility curve show?

• The relative profitability of capital and consumer goods
• The quantity of capital and consumer goods that people want to be produced
• The prices of two types of products being produced
• The maximum combo of two goods that can be produced with given resources.

The United States can best be described as having what kind of economy?

• modified free enterprise
• command economy
• traditional system
• pure free enterprise

The minimum wage is an example of a federal law that supports which economic goal?

• economic growth
• full employment
• economic equity
• economic efficiency

What term describes goods that are typically purchased together, such that an increase in the price of one decreases the demand for the other?

• elastic goods
• complements
• substitutes
• expectations

The four types of economic systems are:

• Communism, Capitalism, Free Market, and Macroeconomics
• Traditional, Command, Mixed, & Market
• Traditional, Command, Combined, & Market
• Microeconomics, Macroeconomics, Individual, and Traditional.