Mother of All Econ Final Prep Quizs

Which of these correctly lists the Factors of Production?

The method society uses to produce and distribute goods and services

Because of __________ people must make choices, and when they choose they incur _______________.

The bourgeoisie were the class Marx identified as

There are no costs to some decisions

In a market economy, decisions are made by

Ultimately, who owns all economic resources?

Which market would a producer buy the equipment and technology for making thingamabobs?

Which of the following is not an economic resource?

The condition of unlimited wants and finite resources

Fiscal policy is how Congress decides to budget money

The Federal Reserve's target rate for inflation

When prices go up, supply decreases

Usage of resources in such a way as to maximize output

Your future well-being depends on financial decisions you make today

Markets allow us to

When banks examine income level, length of employment and debt relative to income

Inflation is

Which factor is illustrated on the x-axis of a supply and demand graph?

All of these are essential questions of economics except

When prices rise, supply goes down

In which market do households sell their labor?

On a graph, the supply curve is ascending

Which of these is an example of inflation

In which market would a household buy the ingredients necessary for cooking dinner?

The Wealth of Nations, which advocates a free market

The most fundamental concept in economics

What helps resources and goods move around the circular flow?

On a graph, the demand curve is descending

The social science that studies the production, distribution and consumption of goods and services

Capital, in the Factors of Production, is money

Resources required to produce all the things we would like to have

The gap between limited resources and unlimited wants

Who are the owners of resources (land, labor, capital, entrepreneurship) in the Circular Flow model?

The cost of borrowing money

Risk takers in search of profits who create new goods and services

Which of these is not a goal of the Federal Reserve?

Adam Smith believed markets were led by

The payment for entrepreneurship

People invest in their own human capital by

What do you call income earned by businesses selling goods and services?

The payment for labor

Money moves around the circular flow

GDP- The dollar value of all new goods, services and structures produced within a country in a 12 month period

The y-axis on a supply and demand graph represents price

What do we call money households earn from providing resources?

Which of these is not an expense?

The philosophical founder of the free enterprise/ free trade system

Which of these is not an essential economic question?

An individual's drive to take part in activities for monetary gain