ECON FINAL REVIEW

Front

What is scarcity?

Back

unlimited wants and needs that can't be met due to limited resources

Front

If a business owner offers a $50 bonus to his sales team for every 10 sales made, this is a _

Back

incentive

Front

On the Production Possibilities curve, why is point "X" not a good outcome for this nation?

Back

Points inside the curve show inefficiency- they could've produced more.

Front

In what economic system would the government control all factors of production?

Back

communism

Front

What is the opportunity cost of spending $50 for a pair of shoes?

Back

Other things you may have purchased instead.

Front

According to the Law of Supply, as prices rise

Back

quantity supplied also rises

Front

If the price of Coke increases significantly, many Coke drinkers will choose to buy Pepsi instead. This is an example of

Back

substitution effect

Front

What are the three questions producers must answer in production of goods?

Back

What, How, for whom to produce?

Front

Since production and supply are determined by price, what is the basis of any business?

Back

profit motive

Front

According to the Law of Demand, as prices rise ___

Back

quantity demanded decreases