PBL Economics Final Exam

Scarcity means that: Mark only one oval.

• Resources are unlimited.

• People must make choices because resources are limited.

• All wants can be satisfied.

• Money is always available.

What is a trade-off? Mark only one oval.

• The use of money to buy goods.

• A sacrifice made to gain something else.

• A situation where resources are unlimited.

• A payment made for labor.

Which of the following is an example of opportunity cost? Mark only one oval.

• Buying both a movie ticket and popcorn.

• Choosing to study instead of going to a party.

• Receiving a scholarship.

Which resource is considered land in economics?

• Factory workers.

• A computer.

• Coal deposits.

• Stock in a company.

Which factor of production refers to the human effort used in production? Mark only one oval.

• Land

• Capital

• Labor

• Entrepreneurship

Which question is NOT one of the three basic economic questions? Mark only one oval.

• What to produce?

• How to produce?

• Who will consume?

• Why to produce?

When making decisions, the benefit you gain from the next unit consumed is called: Mark only one oval.

• Marginal benefit

• Marginal cost

• Trade-off

• Total utility

Which scenario best illustrates scarcity? Mark only one oval.

• A store sells out of a popular video game.

• A person wants more sleep but also wants to study.

• A government prints more money.

• A company lowers its prices.

In a command economy, who makes most of the economic decisions? Mark only one oval.

• Consumers

• The government

• Businesses

• Foreign investors

A market economy is driven mainly by:

• Tradition

• Government planning

• Supply and demand

• Random chance