Intro to Business Final Review Part 1

Which of these NOT a basic economic question that every economy has to answer?

• When to produce?

• What to produce?

• How to produce?

• For whom to produce?

Which of the following is NOT a key economic question?

• How should goods and services be produced?

• What goods and services should be produced?

• For whom should the goods and services be produced?

• How are goods and services to be paid for?

All the resources used to make ALL GOODS AND SERVICES are the_____?

• opportunity costs

• factors of production

• production trade-offs

• production possibilities

Because we have unlimited wants and needs and limited resources, we have to make _______.

• bargains

• compromises

• budgets

• choices

A basic requirement for survival is a _______?

• Need

• Want

• Opportunity Cost

• Paradox of Value

Due to unlimited wants and needs and limited resources, people must make choices. Every choice has a cost. The process of identifying and reviewing alternatives and making a final decision is known as what?

• Trade-off

• Opportunity Cost

• Capital Good

• Cost-Benefit Analysis

This results when a government spends less than it takes in.

• National Debt

• Budget Surplus

• Budget Deficit

• Balanced Budget

Match each economic system with the statement that BEST describes it.

• Things are done the same ways as in past

• Command Economy

• Government owns and controls resources

• Market Economy(also called Free Market or Capitalist)

• Consumers make choices

• Traditional Economy

What is the term for a desire, or something that can improve your quality of life?

• Service

• Want

• Good

• Goal

A carpenter purchases a hammer to use when making cabinets for sale. This is an example of ____?

• an opportunity cost

• a traditional economy

• a capital good

• a consumer good