TEST QUESTIONS AND ANSWERS WITH
SOLUTIONS 2024
Study of how resources are converted into goods and services (includes studying how goods and services
are distributed and used? - ANSWER economics
manufactured material and products that consumers and businesses buy ( backpacks binders tomatoes)
- ANSWER Goods
work that a person or company does for others as a form of business (massage butler storage plumber) -
ANSWER services
Government makes all decisions (e.g socialist and communist governments) - ANSWER Centrally planned
economy
individuals make all decisions - ANSWER Free market economy
Government and individuals are involved - ANSWER Mixed economy
Amount of products offered for sale at a given price - ANSWER supply
amount of a product people will buy at a certain time - ANSWER demand
point when the amount of products produced is equal to the demand for the product - ANSWER
equilibrium
comparison of what will be sacrificed to gain by a specific action - ANSWER cost benefit analysis
what are some examples of cost - ANSWER mileage repairs gas
, what are some examples of benefits - ANSWER warranty insurance good miles per gallon
what is dependent on the exploitation of resources from the natural environment - ANSWER The world
economy
When plants absorb sunlight and release water, they help to moderate the temperature and help
maintain and even climate - ANSWER Modification of climate
plants absorb water from the soil's and release it back to the atmosphere through transpiration this
helps to evenly distribute water - ANSWER maintenance of the water cycle
plants absorb the impact of rain and prevent break up of soil - ANSWER Erosion control and soil building
Diverse array of predators a humans in ridding field of harmful pest - ANSWER pest management
affects only buyers - ANSWER Internal cost or benefit
involves parties other than the buyer and seller - ANSWER external cost or benefit
environmental issues tend to be ___________ cost and benefits - ANSWER long-term
applies the principles of earths systems to economics (includes biotic and abiotic factors, inputs and
outputs are balance, economy should be stable) - ANSWER ecological economies
economies can become more sustainable if environmental challenges are addressed (assign market
values to ecosystem services, can be difficult to determine value) - ANSWER Environmental economies
The price of goods and services - ANSWER market values
values not usually included in the price of goods and services - ANSWER non-market values