LCECON2JJ EXAM QUESTIONS AND
ANSWERS GRADED A+ 2025/2026
FACTORS OF PRODUCTION - ANS Land, labor, and capital; the three groups of resources that
are used to make all goods and services
CHOICE - ANS Decision made or course of action taken when faced with a set of alternatives.
SCARCITY - ANS Limited quantities of resources to meet unlimited wants
OPPURTUNITY COST - ANS the loss of potential gain from other alternatives when one
alternative is chosen.
TRADEOFFS - ANS The sacrifice of some or all of one economic goal, good, or service to
achieve some other goal, good, or service.
ECONOMICS - ANS the study of how society manages its scarce resources
PRODUCTION POSSIBILITIES CURVE - ANS a graph that shows alternative ways to use an
economy's productive resources
THREE ECONOMIC QUESTIONS - ANS 1. What goods and services should be produced?
2. How should these goods and services be produced?
3. Who consumes these goods and services?
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, SOCIALISM - ANS A system in which society, usually in the form of the government, owns and
controls the means of production.
THE FREE MARKET - ANS An economic system in which prices and wages are determined by
unrestricted competition between businesses, without government regulation or fear of
monopolies.
CAPITALISM - ANS An economic system based on private ownership of capital
COMMUNISM - ANS a political theory derived from Karl Marx, advocating class war and
leading to a society in which all property is publicly owned and each person works and is paid
according to their abilities and needs.
COMMAND ECONOMY - ANS An economic system in which the government controls a
country's economy.
ENTREPRENEURS - ANS a person who organizes and operates a business or businesses, taking
on greater than normal financial risks in order to do so.
MARKET STRUCTURES - ANS perfect competition, monopolistic competition, oligopoly,
monopoly
MONOPOLY - ANS A market in which there are many buyers but only one seller.
OLIGOPOLY - ANS A market structure in which a few large firms dominate a market
MONOPOLISTIC COMPETITION - ANS A market structure in which barriers to entry are low
and many firms compete by selling similar, but not identical, products.
PERFECT COMPETITION - ANS Market structure with many buyers and sellers.
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
ANSWERS GRADED A+ 2025/2026
FACTORS OF PRODUCTION - ANS Land, labor, and capital; the three groups of resources that
are used to make all goods and services
CHOICE - ANS Decision made or course of action taken when faced with a set of alternatives.
SCARCITY - ANS Limited quantities of resources to meet unlimited wants
OPPURTUNITY COST - ANS the loss of potential gain from other alternatives when one
alternative is chosen.
TRADEOFFS - ANS The sacrifice of some or all of one economic goal, good, or service to
achieve some other goal, good, or service.
ECONOMICS - ANS the study of how society manages its scarce resources
PRODUCTION POSSIBILITIES CURVE - ANS a graph that shows alternative ways to use an
economy's productive resources
THREE ECONOMIC QUESTIONS - ANS 1. What goods and services should be produced?
2. How should these goods and services be produced?
3. Who consumes these goods and services?
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, SOCIALISM - ANS A system in which society, usually in the form of the government, owns and
controls the means of production.
THE FREE MARKET - ANS An economic system in which prices and wages are determined by
unrestricted competition between businesses, without government regulation or fear of
monopolies.
CAPITALISM - ANS An economic system based on private ownership of capital
COMMUNISM - ANS a political theory derived from Karl Marx, advocating class war and
leading to a society in which all property is publicly owned and each person works and is paid
according to their abilities and needs.
COMMAND ECONOMY - ANS An economic system in which the government controls a
country's economy.
ENTREPRENEURS - ANS a person who organizes and operates a business or businesses, taking
on greater than normal financial risks in order to do so.
MARKET STRUCTURES - ANS perfect competition, monopolistic competition, oligopoly,
monopoly
MONOPOLY - ANS A market in which there are many buyers but only one seller.
OLIGOPOLY - ANS A market structure in which a few large firms dominate a market
MONOPOLISTIC COMPETITION - ANS A market structure in which barriers to entry are low
and many firms compete by selling similar, but not identical, products.
PERFECT COMPETITION - ANS Market structure with many buyers and sellers.
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
