VirtualSC Honors Economics Final Exam [ACTUAL EXAM] LATEST
VERSION [QUESTIONS AND ANSWERS] WITH PRACTICE EXAM
DETAILED AND VERIFIED FOR GUARANTEED PASS- LATEST
UPDATE 2025 GRADED A
Which statement describes a disadvantage of a command economy?
Select one:
Items tend to be made solely for the sake of profit.
It can't "change direction" easily.
It doesn't help the disadvantaged obtain the goods and services they need.
Nothing stops the government from producing things people don't need. - CORRECT
ANSWER Nothing stops the government from producing things people don't need.
Within the market system, prices are determined by which of the following _____ ?
Select one:
a central planning committee
buyers and sellers (demand and supply)
opportunity cost
the Federal Reserve - CORRECT ANSWER buyers and sellers (demand and supply)
In a command economy, prices may be determined by _____ .
the Federal Reserve
a central planning committee
supply and demand
opportunity cost - CORRECT ANSWER a central planning committee
In a mixed economy _____ .
firms do not compete with one another
markets are not present
the government owns all factors of production
firms can enter and exit the market as they wish - CORRECT ANSWER firms can
enter and exit the market as they wish
When one decision is made, the next best alternative not chosen is called which term?
Select one:
Opportunity cost
Scarcity
Economic resource
,Production - CORRECT ANSWER opportunity cost
Which of the following statements is NOT an example of a market economy?
Select one:
Sellers can enter and exit the market.
Consumers can choose what they want to buy.
Government ownership of the factors of production.
Competition among sellers of products. - CORRECT ANSWER government
ownership of the factors of production
Which of the following is an example of capital?
Select one:
Oil
A factory
A construction worker
A cheeseburger dinner - CORRECT ANSWER a factory
Mineral deposits, human capital, and entrepreneurship use of technology and
machinery are all examples of which of the following _____ ?
Select one:
elements sometimes needed to move an existing company overseas
material wants and needs
the Circular Flow model
factors of production - CORRECT ANSWER factors of production
How are transactions shaped in a traditional economy?
Select one:
Individuals form networks within which they buy, sell, and trade as they choose.
Each community decides as a group for whom the group will produce.
Elders and ancestors make certain that things are done in specific ways.
The three basic questions of production do not arise in this type of economy. -
CORRECT ANSWER Elders and ancestors make certain that things are done in
specific ways.
What kind of economy offers the same wage no matter how productive a person is?
Select one:
Traditional economies
Market economies
All economies
Command economies - CORRECT ANSWER command economies
market economy - CORRECT ANSWER Economic system in which private citizens
own and use resources to make a profit
mixed economy - CORRECT ANSWER Economic system that has some combination
of traditional, command, and market economies
,command economy - CORRECT ANSWER Economic system in which a central
authority makes the major economic decisions
economic system - CORRECT ANSWER Efficient way of allocating resources and
producing and distributing goods and services in a society
traditional economy - CORRECT ANSWER Economic system in which economic
activity is the result of ritual, habit, or custom
land - CORRECT ANSWER a river
capital - CORRECT ANSWER a bulldozer
labor - CORRECT ANSWER time spent making a pizza at a restaurant
Why are consumers powerful?
Select one:
Their decisions force businesses to behave ethically.
They have more rights than corporations.
They help decide a business's opportunity costs.
They drive decisions about what to produce. - CORRECT ANSWER they drive
decisions about what to produce
Which country is an example of a capitalist economy?
Select one:
North Korea
South Korea
Venezuela
Cuba - CORRECT ANSWER south korea
Which of the following is a consequence of scarcity?
Select one:
Producing more of one good can be accomplished without sacrificing any of another.
Material resources are not limited.
A society's wants and needs can all be satisfied.
Producing more of one good means producing less of another one. - CORRECT
ANSWER producing more of one good means producing less of another one
Scarcity is best defined as which of the following?
Select one:
Material resources that are limited.
A society's wants and needs are unlimited and material resources are limited.
Limited vital material resources compared with limited wants and needs.
, An idea that says industrialized nations will use up all of the natural resources. -
CORRECT ANSWER a society's wants and needs are unlimited and material
resources are limited
If you wanted to understand the relationship between households, businesses, and
resources, you would study _____ .
Select one:
material wants and needs
public goods
nonmarket transactions
the Circular Flow model - CORRECT ANSWER the Circular Flow model
Answer the question below using the PPC curve to answer this question.What does the
outward shift of the curve represent?
Economic Growth
Efficient Use of Resources
Opportunity Cost
Impossible Use of Resources
Under utilized Resources - CORRECT ANSWER economic growth
An economy that is producing the maximum amount of goods and services is
considered to be which of the following?
efficient
trading off
growing
under utilized - CORRECT ANSWER efficient
In economics, the term capital goods refers to which of the following?
The amount of funds used to start a business.
Company stocks and bonds
The equipment and structures used to produce goods and services.
The saving deposits an individual keeps in a bank. - CORRECT ANSWER The
equipment and structures used to produce goods and services.
Economic growth is an increase in a nation's output of goods and services over time.
Select one:
True
False - CORRECT ANSWER True
A graph showing all the combinations of goods and services that can be produced if all
of society's resources are used efficiently is called which term?
Lorenz Curve
production possibilities curve
circular flow model
capital consumption frontier - CORRECT ANSWER production possibilities curve
VERSION [QUESTIONS AND ANSWERS] WITH PRACTICE EXAM
DETAILED AND VERIFIED FOR GUARANTEED PASS- LATEST
UPDATE 2025 GRADED A
Which statement describes a disadvantage of a command economy?
Select one:
Items tend to be made solely for the sake of profit.
It can't "change direction" easily.
It doesn't help the disadvantaged obtain the goods and services they need.
Nothing stops the government from producing things people don't need. - CORRECT
ANSWER Nothing stops the government from producing things people don't need.
Within the market system, prices are determined by which of the following _____ ?
Select one:
a central planning committee
buyers and sellers (demand and supply)
opportunity cost
the Federal Reserve - CORRECT ANSWER buyers and sellers (demand and supply)
In a command economy, prices may be determined by _____ .
the Federal Reserve
a central planning committee
supply and demand
opportunity cost - CORRECT ANSWER a central planning committee
In a mixed economy _____ .
firms do not compete with one another
markets are not present
the government owns all factors of production
firms can enter and exit the market as they wish - CORRECT ANSWER firms can
enter and exit the market as they wish
When one decision is made, the next best alternative not chosen is called which term?
Select one:
Opportunity cost
Scarcity
Economic resource
,Production - CORRECT ANSWER opportunity cost
Which of the following statements is NOT an example of a market economy?
Select one:
Sellers can enter and exit the market.
Consumers can choose what they want to buy.
Government ownership of the factors of production.
Competition among sellers of products. - CORRECT ANSWER government
ownership of the factors of production
Which of the following is an example of capital?
Select one:
Oil
A factory
A construction worker
A cheeseburger dinner - CORRECT ANSWER a factory
Mineral deposits, human capital, and entrepreneurship use of technology and
machinery are all examples of which of the following _____ ?
Select one:
elements sometimes needed to move an existing company overseas
material wants and needs
the Circular Flow model
factors of production - CORRECT ANSWER factors of production
How are transactions shaped in a traditional economy?
Select one:
Individuals form networks within which they buy, sell, and trade as they choose.
Each community decides as a group for whom the group will produce.
Elders and ancestors make certain that things are done in specific ways.
The three basic questions of production do not arise in this type of economy. -
CORRECT ANSWER Elders and ancestors make certain that things are done in
specific ways.
What kind of economy offers the same wage no matter how productive a person is?
Select one:
Traditional economies
Market economies
All economies
Command economies - CORRECT ANSWER command economies
market economy - CORRECT ANSWER Economic system in which private citizens
own and use resources to make a profit
mixed economy - CORRECT ANSWER Economic system that has some combination
of traditional, command, and market economies
,command economy - CORRECT ANSWER Economic system in which a central
authority makes the major economic decisions
economic system - CORRECT ANSWER Efficient way of allocating resources and
producing and distributing goods and services in a society
traditional economy - CORRECT ANSWER Economic system in which economic
activity is the result of ritual, habit, or custom
land - CORRECT ANSWER a river
capital - CORRECT ANSWER a bulldozer
labor - CORRECT ANSWER time spent making a pizza at a restaurant
Why are consumers powerful?
Select one:
Their decisions force businesses to behave ethically.
They have more rights than corporations.
They help decide a business's opportunity costs.
They drive decisions about what to produce. - CORRECT ANSWER they drive
decisions about what to produce
Which country is an example of a capitalist economy?
Select one:
North Korea
South Korea
Venezuela
Cuba - CORRECT ANSWER south korea
Which of the following is a consequence of scarcity?
Select one:
Producing more of one good can be accomplished without sacrificing any of another.
Material resources are not limited.
A society's wants and needs can all be satisfied.
Producing more of one good means producing less of another one. - CORRECT
ANSWER producing more of one good means producing less of another one
Scarcity is best defined as which of the following?
Select one:
Material resources that are limited.
A society's wants and needs are unlimited and material resources are limited.
Limited vital material resources compared with limited wants and needs.
, An idea that says industrialized nations will use up all of the natural resources. -
CORRECT ANSWER a society's wants and needs are unlimited and material
resources are limited
If you wanted to understand the relationship between households, businesses, and
resources, you would study _____ .
Select one:
material wants and needs
public goods
nonmarket transactions
the Circular Flow model - CORRECT ANSWER the Circular Flow model
Answer the question below using the PPC curve to answer this question.What does the
outward shift of the curve represent?
Economic Growth
Efficient Use of Resources
Opportunity Cost
Impossible Use of Resources
Under utilized Resources - CORRECT ANSWER economic growth
An economy that is producing the maximum amount of goods and services is
considered to be which of the following?
efficient
trading off
growing
under utilized - CORRECT ANSWER efficient
In economics, the term capital goods refers to which of the following?
The amount of funds used to start a business.
Company stocks and bonds
The equipment and structures used to produce goods and services.
The saving deposits an individual keeps in a bank. - CORRECT ANSWER The
equipment and structures used to produce goods and services.
Economic growth is an increase in a nation's output of goods and services over time.
Select one:
True
False - CORRECT ANSWER True
A graph showing all the combinations of goods and services that can be produced if all
of society's resources are used efficiently is called which term?
Lorenz Curve
production possibilities curve
circular flow model
capital consumption frontier - CORRECT ANSWER production possibilities curve
