Economics Exam Quiz

Laissez-faire encourages government inference in the economy

The amount of goods and services that are available

Scarcity is the principle that _________ resources of goods and services are available to meet unlimited wants

The desire to own something and ability to pay for it

All natural resources used to produce goods and services

The amount of money a business receives in excess of its exspenses

An economic system in which decisions on the three key economic questions are based on voluntary exchange in markets

A situation in which consumers want more of a good or service that producers are willing to make available at a price

When quantity supplied is more than the quantity demanded

A political system that owns and controls all resources and means of production and makes all economic decisions

The effort people devote to tasks in which they are paid

Something that is essential for survival such as food or medical care.

Something that people desire but that is not necessary for survival.

A Production Possibility Curve shows only one most productive way to use a country's productive resources.

An economic System that has some market based elements and some level of government involvement.

Economics is the study of_________________.

The physical objects that someone produces

The five economic goals are: Efficiency, Freedom, Security, Equity, and Growth

The structure of methods and principles that a society uses to produce and distribute goods and services

Physical capital is the human-made objects used to create only goods

The actions or activities that one person performs for another.

Efficiency is the use of resources in such a way as to __________ the output of goods and services

any human made resource that is used to produce other goods and services

Elasticity of Supply is the measure in the way quantity supplied reacts to change in demand

The process of deciding whether to do or use one additional unit of some resource

The standard of living is the level of ____________.

An economic system that relies on habit, customs, fitual to decide the three economic questions.

Human Capital is the ________ and __________ a worker gains through education and expierence

An economy in which production, investment, prices, and incomes are determined centrally by a government.

Opportunity cost is the most desirable alternative given up as a result of a decision