BME B Final Exam Review

An example of a natural resource would be

• a computer programmer
• money
• sunlight
• a fishing net

The decision-making process is best to use when

• you already know the choice you will make.
• you are facing a decision with several good alternatives.
• groups rather then individual are making a choice.
• you don't have enough money to pay for any of the choices.

The means through which goods and services are produced are called

• economic resources
• needs
• spending opportunities
• economic choices

When a country decided to focus on advanced technology and a skilled labor force, it is primarily answering which of the basic economic questions?

• What to produce?
• How to produce?
• Which needs to satisfy?
• Which wants to satisfy?

Personal economic freedom is most limited in a

• command economy
• market economy
• mixed economy
• traditional economy

Which of the following is NOT characteristic of a capitalistic economy?

• freedom of choice
• government ownership of all resources
• the profit motive
• competition among businesss

John has two hours before having to go to his part-time job. He is deciding between studying for a math exam and taking a nap. If John chooses to take a nap, the opportunity cost of his decision is

• the rest he is getting
• the score he will earn on the math exam
• the wages from his part-time job
• all of the responses are correct

Something pledged as security for repayment of a loan, to be forfeited in the event of a default

• collateral
• insurance
• deductible

The fact that, other things equal, people tend to prefer to consume goods and services immediately than to wait to consume them in the future, everything else remaining equal.

• Time preference
• Risk premium
• Subjective discount rate

__ is using savings to create capital in an attempt to generate even more value in the future.

• Investment
• Profit
• Saving