Economics Final 24-25

Front

Economics is best defined as the study of how people satisfy unlimited wants with scarce resources.

Back

how people satisfy unlimited wants with scarce resources

Front

The condition that results from society not having enough resources to produce all things people would like to have is called:

Back

Scarcity

Front

An opportunity cost is entailed in which of the following situations? I. A student decides to attend college full-time. II. A family uses its $20,000 savings to purchase an automobile. III. A farmer decides to grow more wheat and less corn.

Back

I, II, and III

Front

Which economic system is free of any government involvement and has decisions made entirely by individuals?

Back

free market

Front

Which of the following is associated with a command economy? competitive product markets, use of resources for private gain, complete government control of resources, entry of firms into industries with economic profit

Back

complete government control of resources

Front

In a mixed economy, who answers the three basic economic questions?

Back

both individuals and the government

Front

Assume the economy is currently producing at combination "D." If the economy were to move from combination "D" to combination "E," what would be the opportunity cost of this decision?

Back

4 consumer goods

Front

Consider the production possibilities curve for an economy shown. Which of the following would allow the economy to produce at point V in the future? An increase in the amount of available resources or technology, A significant amount of the labor force leaving the country, A new technology that improves the production of consumer goods only, An economic crash that causes workers to lose their jobs

Back

An increase in the amount of available resources or technology

Front

When countries trade according to their comparative advantages, each country may:

Back

consume outside its production possibility curve.

Front

The table below shows the marginal benefit Tony gets from eating different quantities of apples. If apples cost $5 each, how many should he buy to maximize his utility?

Back

3 apples