ECONOMICS FINAL EXAM SPRING 2025

Which of the following best describes scarcity?

• Unlimited resources and limited wants

• Limited resources and unlimited wants

• Unlimited resources and unlimited wants

• Limited wants and limited resources

What is an opportunity cost?

• The money lost in a failed investment

• The most desirable alternative given up as a result of a decision

• The total cost of producing a good

• The sum of fixed and variable costs

Which of the following is NOT a factor of production?

• Labor

• Land

• Capital

• Money

Which of the following is a capital good?

• A pizza

• A delivery truck

• A worker

• A farm

A production possibilities curve shows:

• How inflation affects production

• The maximum output of two goods using available resources

• How to calculate opportunity cost

• The cost of economic decisions

In a traditional economy, economic roles are determined by:

• The government

• Supply and demand

• Customs and beliefs

• Corporations

In a command economy, who makes the basic economic decisions?

• Private businesses

• Individual citizens

• The government

What best describes a mixed economy?

• An economy with no government intervention

• An economy where the government owns all businesses

• A combination of free market and some government involvement

• An economy run by religious traditions

Which of the following countries is closest to a market economy?

• North Korea

• Cuba

• United States

• Soviet Union

Why do markets exist?

• To control resources

• To eliminate competition

• To allow people to exchange goods and services

• To promote socialism