1 | Page
VirtualSC Honors Economics Final Exam
Questions and Answers
In which of these systems is the government most likely to provide
people with goods and services they could not otherwise afford?
Select one:
A command economy
A market economy
A traditional economy
A free-enterprise economy
Ans: A command economy
Which of the factors of production involves taking risks and
combining resources to provide a good or service?
Select one:
Entrepreneurship
Land
Capital
Labor
Ans: Entrepreneurship
Economics is best defined as the study of how societies deal with
which of the following?
Select one:
The problem scarcity
The factors of production
The paradox of wealth
The division of labor
Ans: The problem scarcity
Which statement describes a disadvantage of a command
economy?
Select one:
© 2025 All rights reserved
, 2 | Page
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.
Ans: 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
Ans: 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
Ans: 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
Ans: 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
© 2025 All rights reserved
, 3 | Page
Scarcity
Economic resource
Production
Ans: 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.
Ans: 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
Ans: 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
Ans: factors of production
How are transactions shaped in a traditional economy?
Select one:
© 2025 All rights reserved
, 4 | Page
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.
Ans: 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
Ans: command economies
market economy
Ans: Economic system in which private citizens own and use resources
to make a profit
mixed economy
Ans: Economic system that has some combination of traditional,
command, and market economies
command economy
Ans: Economic system in which a central authority makes the major
economic decisions
economic system
Ans: Efficient way of allocating resources and producing and
distributing goods and services in a society
© 2025 All rights reserved
VirtualSC Honors Economics Final Exam
Questions and Answers
In which of these systems is the government most likely to provide
people with goods and services they could not otherwise afford?
Select one:
A command economy
A market economy
A traditional economy
A free-enterprise economy
Ans: A command economy
Which of the factors of production involves taking risks and
combining resources to provide a good or service?
Select one:
Entrepreneurship
Land
Capital
Labor
Ans: Entrepreneurship
Economics is best defined as the study of how societies deal with
which of the following?
Select one:
The problem scarcity
The factors of production
The paradox of wealth
The division of labor
Ans: The problem scarcity
Which statement describes a disadvantage of a command
economy?
Select one:
© 2025 All rights reserved
, 2 | Page
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.
Ans: 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
Ans: 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
Ans: 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
Ans: 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
© 2025 All rights reserved
, 3 | Page
Scarcity
Economic resource
Production
Ans: 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.
Ans: 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
Ans: 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
Ans: factors of production
How are transactions shaped in a traditional economy?
Select one:
© 2025 All rights reserved
, 4 | Page
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.
Ans: 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
Ans: command economies
market economy
Ans: Economic system in which private citizens own and use resources
to make a profit
mixed economy
Ans: Economic system that has some combination of traditional,
command, and market economies
command economy
Ans: Economic system in which a central authority makes the major
economic decisions
economic system
Ans: Efficient way of allocating resources and producing and
distributing goods and services in a society
© 2025 All rights reserved
