Economics Final Exam ACTUAL
QUESTIONS AND CORRECT ANSWERS
Economics - Correct answers✔✔The science of how and why people, businesses, and
governments make the choices they do.
Scarcity - Correct answers✔✔The condition arising from the combination of unlimited wants
and limited resources.
Stewardship - Correct answers✔✔A biblical concept that refers to a person's responsibility to
make proper choices with his resources.
Nuisance goods - Correct answers✔✔Items that carry a negative economic cost.
Economic cost - Correct answers✔✔The value people place on a good or service.
Economic service - Correct answers✔✔Services that bear a positive economic cost.
Economic good - Correct answers✔✔Items that bear a positive economic cost.
Subjective value - Correct answers✔✔The worth of a good or service as determined by its
usefulness to the buyer.
Intrinsic Value - Correct answers✔✔Value ascribed to a good or service because of its nature.
, Utility - Correct answers✔✔According to the Austrian economist Carl Menger, what determines
the value of an object.
Opportunity cost - Correct answers✔✔The satisfaction one gives up or the regret one
experiences for not choosing a desirable alternative.
Opportunity benefit - Correct answers✔✔The satisfaction a person receives from a choice.
Hidden costs - Correct answers✔✔The principle that Henry Hazlitt reminds readers of in his
story about the broken window.
Positive economics - Correct answers✔✔The approach to economic study involving the
observation of economic choices and the prediction of economic events.
Normative economics - Correct answers✔✔Focuses on value judgments.
Macroeconomics - Correct answers✔✔The level of economic study that is concerned with large-
scale economic choice and issues.
Microeconomics - Correct answers✔✔The level of economic study that is concerned with
choices made by individual units.
Functions of Price - Correct answers✔✔Transmitting information, providing incentives,
redistributing income.
Demand - Correct answers✔✔Term used by economists to describe the act of buying.
QUESTIONS AND CORRECT ANSWERS
Economics - Correct answers✔✔The science of how and why people, businesses, and
governments make the choices they do.
Scarcity - Correct answers✔✔The condition arising from the combination of unlimited wants
and limited resources.
Stewardship - Correct answers✔✔A biblical concept that refers to a person's responsibility to
make proper choices with his resources.
Nuisance goods - Correct answers✔✔Items that carry a negative economic cost.
Economic cost - Correct answers✔✔The value people place on a good or service.
Economic service - Correct answers✔✔Services that bear a positive economic cost.
Economic good - Correct answers✔✔Items that bear a positive economic cost.
Subjective value - Correct answers✔✔The worth of a good or service as determined by its
usefulness to the buyer.
Intrinsic Value - Correct answers✔✔Value ascribed to a good or service because of its nature.
, Utility - Correct answers✔✔According to the Austrian economist Carl Menger, what determines
the value of an object.
Opportunity cost - Correct answers✔✔The satisfaction one gives up or the regret one
experiences for not choosing a desirable alternative.
Opportunity benefit - Correct answers✔✔The satisfaction a person receives from a choice.
Hidden costs - Correct answers✔✔The principle that Henry Hazlitt reminds readers of in his
story about the broken window.
Positive economics - Correct answers✔✔The approach to economic study involving the
observation of economic choices and the prediction of economic events.
Normative economics - Correct answers✔✔Focuses on value judgments.
Macroeconomics - Correct answers✔✔The level of economic study that is concerned with large-
scale economic choice and issues.
Microeconomics - Correct answers✔✔The level of economic study that is concerned with
choices made by individual units.
Functions of Price - Correct answers✔✔Transmitting information, providing incentives,
redistributing income.
Demand - Correct answers✔✔Term used by economists to describe the act of buying.
