Economics Final Exam

Each of these is a fundamental economic question except

• For Whom to produce?
• What to produce?
• How to produce?
• Where do we produce?

The fact that there are limited resources to produce limited amounts of goods is known as?

• Surplus

• Scarcity

• Income

• Shortage

Scarcity is considered

• The sacrifice involved in decision making
• A factor of production
• The fundamental problem of economics
• An opportunity cost

What are the four factors of production?

• Labor, Trade Offs, Opportunity Costs, Money
• Land, Labor, Capital, Entrepreneurship
• Land, Labor, Equity, Entrepreneurship
• Land, Capital, Machine, Businesses

What economic system does the United States use?

• Command System (Communism)

• Mixed System

• Free Market System (Capitalism)

• Trade/Barter System

The law that states higher price leads to lower quantity demanded and lower price leads to higher quantity demanded.

• The Law of Supply

• The Law of Opportunity

• The Law of Demand

• The Law of Scarcity

The law of supply states that an increase in the price of goods results in an increase in the quantity supplied.

• True

• False

A good that can replace another good is known as

• Complementary Goods

• Subsidies

• Substitute Goods

• Replacement Goods

A market structure where a single entity controls the production or sale of a good or service, limiting competition is known as

• Complete Control

• Monopoly

• Market Economics

• Oligopoly

A business with many employees, a management structure, and stocks is known as

• Partnership

• Entrepeneurship

• Corporation

• Enterprise