Economics Final Exam 2024

Front

Firms constantly work to become more efficient, reducing their inputs and maximizing their outputs. What is the economic concept at work?

Back

Increasing productivity

Front

Goods intended for use by individuals/families are considered to be...

Back

Consumer Goods

Front

Goods intended for use by businesses are considered to be...

Back

Capital goods

Front

Production possibilities graph: Which points are producing at 100% efficiency?

Back

A, B, C

Front

Production possibilities graph: Which point is recessionary?

Back

K

Front

Description of a production possibility graph: Options: This is an increasing cost curve because the goods being produced are made from different resources, This is a constant cost curve because for every additional item produced, an increasing amount of the other item must be sacrificed, This is an increasing curve because for every additional item produced, an increasing amount of the other item must be sacrificed, This is a constant cost curve because the goods being produced are made from similar resources

Back

This is a constant cost curve because the goods being produced are made from similar resources

Front

What does the production possibility graph describe?

Back

This is an increasing curve because for every additional item produced, an increasing amount of the other item must be sacrificed.

Front

Role of an individual in the economy according to the Circular Flow model.

Back

Individuals supply their labor in the factor market, and purchase consumer goods in the product market.

Front

What is a mixed economy?

Back

A mixed economy utilizes market freedoms for wealth creation and government regulations and institutions.

Front

If the price of tortilla chips decreased by 50%, what would happen to the demand for salsa and why?

Back

Demand for salsa as a complement would increase because more people would want chips