Econ Block Final Exam

Individuals who come up with a new idea for a good or service, then they make it a reality

• resource
• human resources
• consumer
• entrepreneur

A person who buys goods and services

• consumer
• entrepreneur
• resource
• currency

On this PPC, which point is efficient? 

• A
• C
• D
• None

On the PPC, which point is inefficient?

• A
• B
• C
• D

Anything that brings buyers and sellers together is referred to as a...

• good

• market

• service

• shortage

Economics can be defined as ________________.

• the science of decision making

• the study of human behavior

• the science of buying and selling

• the study of unlimited resources

How much a good is wanted by the population is called what?

• Shortage
• Supply
• Demand
• Scarcity

Opportunity cost is...

• if you produce another product, the opportunity cost is the money used

• if you purchase a product the opportunity cost is the money that goes to the company

• if you study extra two hours, the opportunity cost is the two hours leisure that now you cannot have

• if you give food to the fish, the opportunity cost is the amount of food eaten by the fish

What are the two basic elements of the circular flow model?

• banks and households

• households and business firms

• business firms and stock markets

• stock markets and banks

What do households provide to the resource market?

• land, labor, capital, and entrepreneurship

• money

• people

• income