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Virtual SC economics CP final exam
Questions and Answers
The study of economics involves ________________
a) explaining how people deal with scarcity
b) studying how things are made, bought, sold, and used
c) explaining how incomes are earned and how jobs are created
d) all of these
Ans: Correct Answer: D
When a nation's total output increases over time, the nation is
experiencing _____________
a) a decrease in gross domestic product
b) economic growth
c) economic interdependence
d) an expansion of the possibilities curve
Ans: Correct Answer: B
Which of the following descriptions best explains the meaning of
opportunity cost?
a) the initial cost of starting a new business
b) the cost of business failure
c) the cost of choosing one alternative over another
d) the risk associated with producing a new item
Ans: Correct Answer: C
A nation's wealth is determined by its ______________
a) accumulation of all tangible and intangible resources
b) natural resources
c) accumulation of all tangible products
d) product possibilities frontier
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, 2 | Page
Ans: Correct Answer: C
Consumers waiting in long lines for a new product is an example
of ___________
a) consumerism
b) consumer rights
c) consumer responsibilites
d) scarcity
Ans: Correct Answer: D
Paradox of value refers to the ___________
a) a high value of an essential item and the low value of a
nonessential item
b) high value of a nonessential item and the low value of an
essential item
c) contradiction of what consumers want and what they need
d) contradiction between gross domestic product and market value
Ans: Correct Answer: B
The efficient use of scarce resources leads to an increase in
____________
a) productivity
b) investment
c) scarcity
d) capital
Ans: Correct Answer: A
The most comprehensive measure of a nation's wealth is provided
by its ______________
a) gross domestic product
b) TINSTAAFL rating
c) product possibilities curve
d) capital goods
Ans: Correct Answer: A
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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) ___________
a) production possibility comparison
b) cost-benefit analysis
c) economic model
d) needs assessment
Ans: Correct Answer: B
Which of the following statements best describes the purpose of
the production possibilities curve?
a) it predicts the future production of a nation
b) it identifies trends in production
c) it shows which products are most profitable
d) it identifies all possible combinations of goods and services an
economy can product
Ans: Correct Answer: D
The market structure called perfect competition is best described
as ____________
a) theoretical and a goal
b) commonplace and normal
c) small and uncommon
d) natural and abundant
Ans: Correct Answer: A
What is the main cause of a change in quantity demanded?
a) substitution
b) changes in revenue
c) change in price
d) the income effect
Ans: Correct Answer: C
What is the major difference between perfect competition and
monopolistic competition?
a) price
b) competition
© 2025 All rights reserved
Virtual SC economics CP final exam
Questions and Answers
The study of economics involves ________________
a) explaining how people deal with scarcity
b) studying how things are made, bought, sold, and used
c) explaining how incomes are earned and how jobs are created
d) all of these
Ans: Correct Answer: D
When a nation's total output increases over time, the nation is
experiencing _____________
a) a decrease in gross domestic product
b) economic growth
c) economic interdependence
d) an expansion of the possibilities curve
Ans: Correct Answer: B
Which of the following descriptions best explains the meaning of
opportunity cost?
a) the initial cost of starting a new business
b) the cost of business failure
c) the cost of choosing one alternative over another
d) the risk associated with producing a new item
Ans: Correct Answer: C
A nation's wealth is determined by its ______________
a) accumulation of all tangible and intangible resources
b) natural resources
c) accumulation of all tangible products
d) product possibilities frontier
© 2025 All rights reserved
, 2 | Page
Ans: Correct Answer: C
Consumers waiting in long lines for a new product is an example
of ___________
a) consumerism
b) consumer rights
c) consumer responsibilites
d) scarcity
Ans: Correct Answer: D
Paradox of value refers to the ___________
a) a high value of an essential item and the low value of a
nonessential item
b) high value of a nonessential item and the low value of an
essential item
c) contradiction of what consumers want and what they need
d) contradiction between gross domestic product and market value
Ans: Correct Answer: B
The efficient use of scarce resources leads to an increase in
____________
a) productivity
b) investment
c) scarcity
d) capital
Ans: Correct Answer: A
The most comprehensive measure of a nation's wealth is provided
by its ______________
a) gross domestic product
b) TINSTAAFL rating
c) product possibilities curve
d) capital goods
Ans: Correct Answer: A
© 2025 All rights reserved
, 3 | Page
When a business needs to decide whether a certain action is worth
the cost, the most helpful analysis would be a(n) ___________
a) production possibility comparison
b) cost-benefit analysis
c) economic model
d) needs assessment
Ans: Correct Answer: B
Which of the following statements best describes the purpose of
the production possibilities curve?
a) it predicts the future production of a nation
b) it identifies trends in production
c) it shows which products are most profitable
d) it identifies all possible combinations of goods and services an
economy can product
Ans: Correct Answer: D
The market structure called perfect competition is best described
as ____________
a) theoretical and a goal
b) commonplace and normal
c) small and uncommon
d) natural and abundant
Ans: Correct Answer: A
What is the main cause of a change in quantity demanded?
a) substitution
b) changes in revenue
c) change in price
d) the income effect
Ans: Correct Answer: C
What is the major difference between perfect competition and
monopolistic competition?
a) price
b) competition
© 2025 All rights reserved
