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VirtualSC Economics Final Exam Review
Questions and Answers
What is THE basic economic problem?
Ans: explaining how people deal with scarcity
When a nation's total output increases over time, the nation is
experiencing ____.
Ans: economic growth
Which statement best explains the meaning of opportunity cost?
Ans: the cost of choosing one alternative over another
A nation's wealth is determined by its ____.
Ans: accumulation of all tangible products
Consumers waiting in long lines for a new product is an example
of ____.
Ans: scarcity
Paradox of value refers to the ____.
Ans: the high value of a nonessential item and the low value of an
essential item
The efficient use of scarce resources leads to an increase in ____.
Ans: productivity
The most comprehensive measure of a nation's wealth is provided
by its ____.
Ans: gross domestic product
© 2025 All rights reserved
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When a business needs to decide whether a certain action is worth
the cost, the most helpful analysis would be a(n) ____.
Ans: cost-benefit analysis
Which statement best describes the purpose of the production
possibilities curve?
Ans: it identifies all possible combinations of goods and services an
economy can produce
The market structure called perfect competition is best described
as ____.
Ans: theoretical and a goal
What is the main cause of a change in quantity demanded?
Ans: change in price
What is the major difference between perfect competition and
monopolistic competition?
Ans: product differentiation
What is the relationship between income and demand?
Ans: An increase in income increases demand.
When the price of something increases, the quantity demanded
____.
Ans: decreases
Which is an example of a public good?
Ans: army
Which market structure is defined by a single producer?
Ans: monopoly
What do economists use to classify markets?
© 2025 All rights reserved
VirtualSC Economics Final Exam Review
Questions and Answers
What is THE basic economic problem?
Ans: explaining how people deal with scarcity
When a nation's total output increases over time, the nation is
experiencing ____.
Ans: economic growth
Which statement best explains the meaning of opportunity cost?
Ans: the cost of choosing one alternative over another
A nation's wealth is determined by its ____.
Ans: accumulation of all tangible products
Consumers waiting in long lines for a new product is an example
of ____.
Ans: scarcity
Paradox of value refers to the ____.
Ans: the high value of a nonessential item and the low value of an
essential item
The efficient use of scarce resources leads to an increase in ____.
Ans: productivity
The most comprehensive measure of a nation's wealth is provided
by its ____.
Ans: gross domestic product
© 2025 All rights reserved
, 2 | Page
When a business needs to decide whether a certain action is worth
the cost, the most helpful analysis would be a(n) ____.
Ans: cost-benefit analysis
Which statement best describes the purpose of the production
possibilities curve?
Ans: it identifies all possible combinations of goods and services an
economy can produce
The market structure called perfect competition is best described
as ____.
Ans: theoretical and a goal
What is the main cause of a change in quantity demanded?
Ans: change in price
What is the major difference between perfect competition and
monopolistic competition?
Ans: product differentiation
What is the relationship between income and demand?
Ans: An increase in income increases demand.
When the price of something increases, the quantity demanded
____.
Ans: decreases
Which is an example of a public good?
Ans: army
Which market structure is defined by a single producer?
Ans: monopoly
What do economists use to classify markets?
© 2025 All rights reserved
