ECON 200s – Old Dominion University – Final Exam Study
Guide and Key Concepts
The central problem of economics is the... - correct answer ✔✔ the scarcity of resources
relative to human wants
Opportunity cost may be defined as... - correct answer ✔✔ the value of goods or services given
up in order to obtain something else
Societies must address the question of WHAT to produce because... - correct answer ✔✔ We
cant produce all the goods and services we want
which is NOT an economic resource or factor of production... - correct answer ✔✔ NOT: the
money hidden in an old basement
IS: a toll-bridge across a lake, a wrecking ball used to tear down old buildings, the CEO of a large
corporation
In economics, capital refers to... - correct answer ✔✔ goods that can be used to produce other
goods
Which of the following is most likely a public good... - correct answer ✔✔ a park
which of the following is NOT an example of land, or a natural resource... - correct answer ✔✔
NOT: a home builder
IS: coal, natural gas, a river
According to the latin phrase, "ceteris paribus" - correct answer ✔✔ nothing else changes
, microeconomics focuses on... - correct answer ✔✔ the behavior of individuals, firms and govn't
agencies
macroeconomics focuses on... - correct answer ✔✔ the economy as a whole
unlike a private good, a public good... - correct answer ✔✔ has benefits available to all,
including non payers
people enjoy outdoor holiday lighting displays and would be willing to pay to see these displays,
but cant be made to pay. because those who put up the lights are unable to charge others to
view them, they dont put up as many lights as people would like. this is an example of a... -
correct answer ✔✔ demand-side market failure
the invisible band promotes society's interests because... - correct answer ✔✔ individuals
pursuing their self-interest will try to produce goods and services that people in society want
and are willing to purchase
which one of the following expressions best states the idea of opportunity cost... - correct
answer ✔✔ "there is no such thing as a free lunch"
which of the following is most likely a private good... - correct answer ✔✔ cars
externalities are a type of market failure because... - correct answer ✔✔ third parties bears the
cost or benefits of a market activity
the basic economic issue concerning the "for whom" question is specifically interpreted to
mean, who... - correct answer ✔✔ gets to consume the goods and services that are produced
the simple circular flow model shows that... - correct answer ✔✔ households are on the selling
side of the resource market and on the buying side of the resource market
Guide and Key Concepts
The central problem of economics is the... - correct answer ✔✔ the scarcity of resources
relative to human wants
Opportunity cost may be defined as... - correct answer ✔✔ the value of goods or services given
up in order to obtain something else
Societies must address the question of WHAT to produce because... - correct answer ✔✔ We
cant produce all the goods and services we want
which is NOT an economic resource or factor of production... - correct answer ✔✔ NOT: the
money hidden in an old basement
IS: a toll-bridge across a lake, a wrecking ball used to tear down old buildings, the CEO of a large
corporation
In economics, capital refers to... - correct answer ✔✔ goods that can be used to produce other
goods
Which of the following is most likely a public good... - correct answer ✔✔ a park
which of the following is NOT an example of land, or a natural resource... - correct answer ✔✔
NOT: a home builder
IS: coal, natural gas, a river
According to the latin phrase, "ceteris paribus" - correct answer ✔✔ nothing else changes
, microeconomics focuses on... - correct answer ✔✔ the behavior of individuals, firms and govn't
agencies
macroeconomics focuses on... - correct answer ✔✔ the economy as a whole
unlike a private good, a public good... - correct answer ✔✔ has benefits available to all,
including non payers
people enjoy outdoor holiday lighting displays and would be willing to pay to see these displays,
but cant be made to pay. because those who put up the lights are unable to charge others to
view them, they dont put up as many lights as people would like. this is an example of a... -
correct answer ✔✔ demand-side market failure
the invisible band promotes society's interests because... - correct answer ✔✔ individuals
pursuing their self-interest will try to produce goods and services that people in society want
and are willing to purchase
which one of the following expressions best states the idea of opportunity cost... - correct
answer ✔✔ "there is no such thing as a free lunch"
which of the following is most likely a private good... - correct answer ✔✔ cars
externalities are a type of market failure because... - correct answer ✔✔ third parties bears the
cost or benefits of a market activity
the basic economic issue concerning the "for whom" question is specifically interpreted to
mean, who... - correct answer ✔✔ gets to consume the goods and services that are produced
the simple circular flow model shows that... - correct answer ✔✔ households are on the selling
side of the resource market and on the buying side of the resource market
