VirtualSC Economics Final Exam Review Questions And Complete Solutions || A+ Rated

explaining how people deal with scarcity - CORRECT ANSWER What is THE basic economic problem? economic growth - CORRECT ANSWER When a nation's total output increases over time, the nation is experiencing ____. the cost of choosing one alternative over another - CORRECT ANSWER Which statement best explains the meaning of opportunity cost? accumulation of all tangible products - CORRECT ANSWER A nation's wealth is determined by its ____. scarcity - CORRECT ANSWER Consumers waiting in long lines for a new product is an example of ____. the high value of a nonessential item and the low value of an essential item - CORRECT ANSWER Paradox of value refers to the ____. productivity - CORRECT ANSWER The efficient use of scarce resources leads to an increase in ____. gross domestic product - CORRECT ANSWER The most comprehensive measure of a nation's wealth is provided by its ____. cost-benefit analysis - CORRECT ANSWER When a business needs to decide whether a certain action is worth the cost, the most helpful analysis would be a(n) ____. it identifies all possible combinations of goods and services an economy can produce - CORRECT ANSWER Which statement best describes the purpose of the production possibilities curve? theoretical and a goal - CORRECT ANSWER The market structure called perfect competition is best described as ____. change in price - CORRECT ANSWER What is the main cause of a change in quantity demanded? product differentiation - CORRECT ANSWER What is the major difference between perfect competition and monopolistic competition? An increase in income increases demand. - CORRECT ANSWER What is the relationship between income and demand? decreases - CORRECT ANSWER When the price of something increases, the quantity demanded ____. army - CORRECT ANSWER Which is an example of a public good? monopoly - CORRECT ANSWER Which market structure is defined by a single producer? number of firms, size of firms, type of product - CORRECT ANSWER What do economists use to classify markets? the substitution effect - CORRECT ANSWER What is it called to replace a costly item with a less costly one? an incentive for producers to produce more. - CORRECT ANSWER What best describes the influence of high prices on the behavior of producers? because it has been demonstrated repeatedly - CORRECT ANSWER Why is the Law of Demand called a "law"? government - CORRECT ANSWER According to Keynesian economics, which sector of the economy could offset a decline in business spending? quantity demanded equals quantity supplied - CORRECT ANSWER Equilibrium is reached when what occurs? taxing corporations - CORRECT ANSWER Fiscal policy may involve ____. few - CORRECT ANSWER In the economic term oligopoly, the root "olig-" probably means ___. hurts the poor - CORRECT ANSWER It is generally believed that a sales tax ___. efficient - CORRECT ANSWER The Federal Income Tax system is producers - CORRECT ANSWER Which group does supply-side policy target through stimulation? intergovernmental revenue - CORRECT ANSWER "The most important source of state government revenue." "Primarily transferred from federal government to state governments." "The most important source of local government revenue." All of these statements are true of local government - CORRECT ANSWER Elementary schools, police departments, and electrical services are typically paid for by ___. both supply-siders and demand-siders - CORRECT ANSWER Policies that make production more efficient are favored by ____. lowering taxes - CORRECT ANSWER President Reagan tried to reduce government spending by ____. Not all monopolies (such as natural monopolies) are bad. - CORRECT ANSWER The government does not try to eliminate all monopolies. Why? local - CORRECT ANSWER What level of government is most closely associated with zoning restrictions? w