Econ Final Exam Questions & Answers
100% correct.
Which of the following is an example of using physical capital to save time and money? ANS - Building
extra space in a factory to simplify production.
Every decision involves tradeoffs because what? ANS - Everyone's resources are limited
Production possibilities curve shows the relationship between the production of... ANS - Any two
categories of goods
An economy that is producing the maximum amount of goods and services is considered... ANS -
Efficient
A music store holds a one day half price sale on all CDs, consumers react to the sale by buying more CDs
than on a typical day, this action is an example of what? ANS - Law of Demand
The graph shows how many schools and new roads the city can build by using all of its factor resources,
what does the production possibilities curve show? ANS - As the number of schools increase, roads
decrease
A regions production possibilities curve might show underutilization of resources if the region
experienced what? ANS - A large flood
Which of the following is an example of a firm trying to increase its human capital? ANS - Paying for
employees' education
The community of Desertville traditionally produces a large number of tires and a small amount of kiwi
fruit, kiwi's are becoming increasingly popular. Desertville has decided to expand kiwi cultivation and
, decrease tire manufacturing, according to the law of increasing costs... ANS - Opportunity cost of
producing kiwi's will increase
Each society answers the three basic economic questions based on what? ANS - Its unique combination
of values and goals
Which of the following best describes the physical flow from households to firms? ANS - Labor and land
Money flowing to the government from firms and households in a mixed economy is what? ANS - Taxes
Which of the following is a summary of the basic economic questions? ANS - What goods and services
should be produced, how and for whom?
Which of the following is a main incentive for manufacturers to sell a product? ANS - Making a profit on
sales
A country is changing from a centrally planned economy to a free market economy, what will be one
difficulty for citizens in this country? ANS - Workers will lose job security and guaranteed income
What is considered a negative effect of government regulation? ANS - It is expensive for businesses to
follow all the rules
You read an article in a news magazine that explains how the economy expanded for several years, then
went in to a period of contraction, what is the main subject of this article? ANS - The business cycle
Jeff and Margret qualify for section eight housing, a subsidized housing program administered by the
federal government, what kind of benefit are they receiving? ANS - In-kind
Which of the following is a characteristic of a public good? ANS - Its shared by public but is provided by
the government
100% correct.
Which of the following is an example of using physical capital to save time and money? ANS - Building
extra space in a factory to simplify production.
Every decision involves tradeoffs because what? ANS - Everyone's resources are limited
Production possibilities curve shows the relationship between the production of... ANS - Any two
categories of goods
An economy that is producing the maximum amount of goods and services is considered... ANS -
Efficient
A music store holds a one day half price sale on all CDs, consumers react to the sale by buying more CDs
than on a typical day, this action is an example of what? ANS - Law of Demand
The graph shows how many schools and new roads the city can build by using all of its factor resources,
what does the production possibilities curve show? ANS - As the number of schools increase, roads
decrease
A regions production possibilities curve might show underutilization of resources if the region
experienced what? ANS - A large flood
Which of the following is an example of a firm trying to increase its human capital? ANS - Paying for
employees' education
The community of Desertville traditionally produces a large number of tires and a small amount of kiwi
fruit, kiwi's are becoming increasingly popular. Desertville has decided to expand kiwi cultivation and
, decrease tire manufacturing, according to the law of increasing costs... ANS - Opportunity cost of
producing kiwi's will increase
Each society answers the three basic economic questions based on what? ANS - Its unique combination
of values and goals
Which of the following best describes the physical flow from households to firms? ANS - Labor and land
Money flowing to the government from firms and households in a mixed economy is what? ANS - Taxes
Which of the following is a summary of the basic economic questions? ANS - What goods and services
should be produced, how and for whom?
Which of the following is a main incentive for manufacturers to sell a product? ANS - Making a profit on
sales
A country is changing from a centrally planned economy to a free market economy, what will be one
difficulty for citizens in this country? ANS - Workers will lose job security and guaranteed income
What is considered a negative effect of government regulation? ANS - It is expensive for businesses to
follow all the rules
You read an article in a news magazine that explains how the economy expanded for several years, then
went in to a period of contraction, what is the main subject of this article? ANS - The business cycle
Jeff and Margret qualify for section eight housing, a subsidized housing program administered by the
federal government, what kind of benefit are they receiving? ANS - In-kind
Which of the following is a characteristic of a public good? ANS - Its shared by public but is provided by
the government
