Economics Final Exam Review

The value of all of the goods and services produced by an economy is called

Which of the following countries is the most extreme example of a centrally-planned economy

Entrepreneurs are people who

Marginal revenue is equal to market price

Pollution will always be a negative externality

Giving up one alternative for another is called

The theory of laissez faire can only be found in

Socialism believes economic equality is only possible if

The USSR was an example of a communist country where most economic and political power was controlled by the government.

Unlimited needs and wants, but having limited resources is the definition of

The circular flow model shows

You will pass the economics exam with flying colors

Which of the following is not one of the four factors of production

Lobster is an example of an inferior good

Which of the following is a public good?

Substitutes are goods

Which of the following would be capital

In order to measure the marginal product of labor a business must add

The self-regulating nature of the marketplace is called

The idea that everyone can compete in the marketplace is called

Each point on a production possibilities curve shows

Which curve rises from the lower left to the upper right?

Which economic goals are difficult to achieve in a pure market system

Social Security provides

We exchange the things we have for the things we want in a

Microeconomics would study how a household spends the money it earns

Adam Smith wrote Das Kapital

All the goods and services we produce are

Economics is the study of how people

Using resources in such a way as to maximize the production of goods and services is called