Economics and Personal Finance Final Exam

Front

What is the fundamental economic problem that all societies face? Options: Abundance of resources, Scarcity of resources, Equal distribution of resources, Unlimited resources

Back

Scarcity of resources

Front

Which term refers to the value of the next best alternative that is forgone when a choice is made?

Back

Opportunity cost

Front

Which of the following is an example of a need? Smartphone, Shelter, Designer clothing, Vacation

Back

Shelter

Front

In a supermarket, what primarily determines what products are stocked on the shelves?

Back

Consumer demand and supply

Front

In a hypothetical country, the government is in control of resources and production, and everything is centrally planned. What type of economic system does this country follow?

Back

Command economy

Front

Which economic system is characterized by private ownership of resources and competition in the marketplace?

Back

Capitalism

Front

In a command economy, who typically makes decisions about what and how much to produce? Options: Private businesses, Consumers, Government authorities, Market forces

Back

Government authorities

Front

What does the law of demand state?

Back

As the price of a good increases, the quantity demanded decreases.

Front

Land, labor, capital, and entrepreneurship are the four primary factors of production. Which factor does labor represent?

Back

Human effort and skill

Front

What is the study of how individuals, businesses, and governments allocate resources to satisfy their wants and needs called?

Back

Economics