Economics Final Exam

Front

What is a key principle of economics?

Back

People act out of self-interest.

Front

The graph that depicts the amount of a product that consumers are willing to buy at various prices is referred to as what?

Back

demand curve.

Front

What happens when a market reaches equilibrium?

Back

Quantity supplied equals quantity demanded.

Front

Why is it important to understand what others value if you want to earn a high income?

Back

Because it allows you to provide services or products that others are willing to pay for.

Front

What is the impact of business failures and losses?

Back

They lead to the reallocation of resources to more productive areas.

Front

The principle that countries or individuals gain from producing goods and services they have a lower opportunity cost in, is known as

Back

the law of comparative advantage.

Front

Which of the following best describes the relationship between human needs and available resources? Human needs are limited and resources are unlimited. Human needs are unlimited and resources are limited. Both human needs and resources are unlimited. Both human needs and resources are limited.

Back

Human needs are unlimited and resources are limited.

Front

What does the phrase "There's no free lunch" imply?

Back

There is always a cost to someone, even if it appears free to you.

Front

In economic terms, when is it considered optimal to 'Dive In' and make an investment?

Back

When the additional benefits surpass the additional costs.

Front

According to the principle of comparative advantage, who should be responsible for the production of a particular good to maximize overall output?

Back

The individual with the lowest opportunity cost.