ALE Economics Final Exam

Which economic concept describes the situation where resources are limited but human wants are unlimited?

• Inflation
• Surplus
• Scarcity
• Opportunity Cost

What represents the value of the next best alternative that is given up when making a choice?

• Total production cost
• Opportunity cost
• Market price
• Fixed expense

Which of the following is NOT considered a primary economic resource?

• Land
• Labor
• Capital
• Technology

In a market economy, prices typically change based on:

• Government mandates
• Consumer demand
• Supply and demand interactions
• Political decisions

What economic term describes a persistent increase in the general price level of goods and services?

• Recession
• Inflation
• Deflation
• Stagflation

Which market structure features many sellers offering slightly differentiated products?

• Monopoly
• Oligopoly
• Perfect competition
• Monopolistic competition

What does GDP primarily measure?

• Total national debt
• Total exports
• Total value of goods and services produced
• Average citizen income

Which institution is primarily responsible for monetary policy in the United States?

• Treasury Department
• Federal Reserve
• World Bank
• Department of Commerce

What is comparative advantage in international trade?

• Producing all goods domestically
• Producing goods at lower opportunity cost
• Restricting all imports
• Maximizing export revenues

A tariff is best described as:

• A free trade agreement
• A tax on imports
• A subsidy for exporters
• An export restriction