SURVEY OF ECONOMICS ACTUAL TEST QUESTIONS AND SOLUTIONS COMPREHENSIVE REVIEW PACKAGE

SURVEY OF ECONOMICS ACTUAL TEST
QUESTIONS AND SOLUTIONS
COMPREHENSIVE REVIEW PACKAGE

●● Scarcity
Answer: When human wants for goods and services exceed the available
supply.


●● Resources
Answer: Labor, land, tools, raw materials, and time used to produce
goods and services.


●● Ultimate Scarce Resource
Answer: Time; everyone only has 24 hours in a day.


●● Adam Smith
Answer: Economist who introduced the concept of division of labor in
The Wealth of Nations (1776).


●● Division of Labor
Answer: Splitting production into specialized tasks performed by
different workers.

, ●● Specialization
Answer: When workers or firms focus on tasks they perform best.


●● Economies of Scale
Answer: When average cost per unit falls as production increases.


●● Trade
Answer: The exchange of goods and services; necessary for
specialization.


●● Why Specialization Increases Production
Answer: Workers focus on strengths, gain skill, and benefit from
economies of scale.


●● Microeconomics
Answer: The study of individual households, workers, and firms.


●● Macroeconomics
Answer: The study of the economy as a whole, including growth,
unemployment, and inflation.


●● Consumer Behavior
Answer: How individuals decide what goods and services to purchase.