Economics Final

Economics is the study of how people make choices about ways to use ____________ resources to fulfill their unlimited wants and needs.

• Limited

• Natural

• Unlimited

• Man-made

What are the factors of production?

• Land, Technology, Dirt, Resources

• Land, Labor, Entrepreneurship

• Land, Labor, Capital, Entrepreneurship

• Resources used in the production of only services

The factor of production that includes natural resources is known as

• Labor

• Capital

• Land

• Entrepreneurship

The central problem in economics is

• Government

• Opportunity Cost

• Scarcity

• Businesses

A teacher gives extra credit if a student completes a test study guide. This is an example of?

• Positive Incentives

• Freedom of Choice

• Negative Incentives

• Voluntary Exchange

For which item would someone MOST LIKELY need to save money in order to purchase?

• a new washing machine

• a hair dryer

• a new shirt

• a video game

Daycare can be very expensive! My friend pays $972 every month for her 3 year old daughter. This is considered a

• Flexible Expense

• Income

• Discretionary Expense

• Fixed Expense

An 8th grader makes and sells earrings as a way to earn extra money. The money she gets is considered ________.

• Expenses

• Needs

• Income

• Wants

Your paycheck BEFORE deductions

• paycheck

• Gross

• Net

• Income

An expense that changes from month to month.

• Unexpected expense

• Flexible expense

• Fixed Expense