Economics Course Review

Front

What is the fundamental economic problem that leads to the concept of scarcity?

Back

Limited resources and unlimited wants

Front

In a market economy, who makes the majority of economic decisions?

Back

Consumers and producers

Front

If you choose to spend $50 on a textbook instead of concert tickets, what is your opportunity cost?

Back

The concert tickets

Front

Which economic system features heavy government control over resource allocation?

Back

Command economy

Front

According to the Law of Demand, what happens when the price of a good increases?

Back

Quantity demanded decreases

Front

What is the primary tool of monetary policy?

Back

Interest rates

Front

What type of unemployment occurs when workers are between jobs?

Back

Frictional unemployment

Front

What economic indicator measures the total value of all final goods and services produced within a country's borders?

Back

Gross Domestic Product

Front

In a mixed economy, which of the following is typically true?
Options:
Only private businesses operate,
Only government controls resources,
Elements of both market and command systems exist,
Traditional methods dominate

Back

Elements of both market and command systems exist

Front

What causes cost-push inflation? Options: Increased consumer spending, Rising production costs, Government surplus, Decreased demand

Back

Rising production costs