EPF Final Exam Questions Solved 100%
What is the definition of economics? - Answers "The study of the use of scarce resources that have
alternate uses"
Something that motivates a person to take a particular course or action. - Answers Incentive
The "value" of the next most likely choice for the use of a resource that is given up when making a
choice. - Answers Opportunity cost
The law that actions of people and governments always have effects that are not expected - Answers
The law of unintended consequences
What you are making when you choose one thing over another? - Answers A tradeoff
The law that states that as you make use of more additional units of a resource, the additional utility you
get for each additional unit becomes less and less - Answers Law of Diminishing Marginal Utility
Inputs that go into the production of goods and services that will satisfy the economic wants of the
society. - Answers Productive resources (a.k.a. factors of production)
Hello and - Answers WELCOME TO UNIT THREE.
What is profit motive? - Answers How profits are the incentive and the reward to work or start a
business.
Why are profits important in a market economy? - Answers They are the incentive and the reward to
work or start a business, and they are payment for the risk involved in doing economic activity.
Who is paid last from a business's operations? - Answers The owner
Why are property rights important in a market economy? - Answers They enable people to start a
business without interference from the government.
How does a government normally intervene in a market economy? (6) - Answers Protecting property
rights and contracts, promoting the general welfare, provide projects and programs that benefit society
as a whole, preserving competition; protecting consumers, workers, and the environment; stabilizing the
economy
You are an applesauce salesman in Wisconsin. The people of Wisconsin LOVE their applesauce, so they
pay $50,000 per ounce of your applesauce. Applesauce costs 1 cent per ounce to make, and you pay
your workers 49,999.98 dollars per ounce, and the Wisconsinese buy 500 ounces from you. What is your
profit? - Answers 5 dollars!
What do you call a sleeping Jurassic creature? - Answers A Dinosnore!
, What is the Law of Supply? - Answers The lower the price, the less willing producers are to sell the
product; and the higher the price, the more willing producers are to sell the product
What is the Law of Demand? - Answers The lower the price, the more the product will be demanded;
and the higher the price, the less the product will be demanded
How do you figure out equilibrium? - Answers It's where the supply and demand curves cross.
What are the results of government-established price ceiling? - Answers A shortage occurs.
What are the results of government-established price floor? - Answers A surplus occurs.
Name at least one supply curve shift. - Answers Change in the cost of inputs, change in the number of
producers, change in conditions due to natural disasters of international events, change in technology,
change in producer expectations, or change in governmental policy.
Name at least one demand curve shift. - Answers Changes in income, changes in number of consumers,
changes in consumer tastes and preferences, changes in consumer expectations, changes in the price of
substitute goods or changes in the price of complementary goods.
What is the effect of a producer setting the price above the equilibrium? - Answers A surplus occurs.
What is the effect of a producer setting the price below the equilibrium? - Answers A shortage occurs.
What are inputs? - Answers The stuff that goes into a business operation (resources)
What are outputs? - Answers The stuff that comes out a business operation (the products)
What is the formula for productivity? - Answers OUTPUTS OVER INPUTS
Hello good fellow. Would you please name some types of resources for me? - Answers Natural
(perpetual, renewable, and non-renewable), Human, and Capital (physical and mental activities)
What is capacity? - Answers The maximum level of output of goods and/or services that a given system
can potentially produce over a set period of time. In most cases, it is unlikely that any system will
operate at full capacity for prolonged periods, because natural inefficiencies and other factors decrease
potential output.
What are the three basic economic questions? (in a spartan voice) - Answers WHAT TO PRODUCE?????
HOOOOOOW TO PRODUUUUCE???
FOR WHOOOOOOOM TO PRODUCE????????????
What are the four types of economies? - Answers Traditional, Market, Command, and Mixed
Who decides the three economic questions in a traditional economy? - Answers Custom
What is the definition of economics? - Answers "The study of the use of scarce resources that have
alternate uses"
Something that motivates a person to take a particular course or action. - Answers Incentive
The "value" of the next most likely choice for the use of a resource that is given up when making a
choice. - Answers Opportunity cost
The law that actions of people and governments always have effects that are not expected - Answers
The law of unintended consequences
What you are making when you choose one thing over another? - Answers A tradeoff
The law that states that as you make use of more additional units of a resource, the additional utility you
get for each additional unit becomes less and less - Answers Law of Diminishing Marginal Utility
Inputs that go into the production of goods and services that will satisfy the economic wants of the
society. - Answers Productive resources (a.k.a. factors of production)
Hello and - Answers WELCOME TO UNIT THREE.
What is profit motive? - Answers How profits are the incentive and the reward to work or start a
business.
Why are profits important in a market economy? - Answers They are the incentive and the reward to
work or start a business, and they are payment for the risk involved in doing economic activity.
Who is paid last from a business's operations? - Answers The owner
Why are property rights important in a market economy? - Answers They enable people to start a
business without interference from the government.
How does a government normally intervene in a market economy? (6) - Answers Protecting property
rights and contracts, promoting the general welfare, provide projects and programs that benefit society
as a whole, preserving competition; protecting consumers, workers, and the environment; stabilizing the
economy
You are an applesauce salesman in Wisconsin. The people of Wisconsin LOVE their applesauce, so they
pay $50,000 per ounce of your applesauce. Applesauce costs 1 cent per ounce to make, and you pay
your workers 49,999.98 dollars per ounce, and the Wisconsinese buy 500 ounces from you. What is your
profit? - Answers 5 dollars!
What do you call a sleeping Jurassic creature? - Answers A Dinosnore!
, What is the Law of Supply? - Answers The lower the price, the less willing producers are to sell the
product; and the higher the price, the more willing producers are to sell the product
What is the Law of Demand? - Answers The lower the price, the more the product will be demanded;
and the higher the price, the less the product will be demanded
How do you figure out equilibrium? - Answers It's where the supply and demand curves cross.
What are the results of government-established price ceiling? - Answers A shortage occurs.
What are the results of government-established price floor? - Answers A surplus occurs.
Name at least one supply curve shift. - Answers Change in the cost of inputs, change in the number of
producers, change in conditions due to natural disasters of international events, change in technology,
change in producer expectations, or change in governmental policy.
Name at least one demand curve shift. - Answers Changes in income, changes in number of consumers,
changes in consumer tastes and preferences, changes in consumer expectations, changes in the price of
substitute goods or changes in the price of complementary goods.
What is the effect of a producer setting the price above the equilibrium? - Answers A surplus occurs.
What is the effect of a producer setting the price below the equilibrium? - Answers A shortage occurs.
What are inputs? - Answers The stuff that goes into a business operation (resources)
What are outputs? - Answers The stuff that comes out a business operation (the products)
What is the formula for productivity? - Answers OUTPUTS OVER INPUTS
Hello good fellow. Would you please name some types of resources for me? - Answers Natural
(perpetual, renewable, and non-renewable), Human, and Capital (physical and mental activities)
What is capacity? - Answers The maximum level of output of goods and/or services that a given system
can potentially produce over a set period of time. In most cases, it is unlikely that any system will
operate at full capacity for prolonged periods, because natural inefficiencies and other factors decrease
potential output.
What are the three basic economic questions? (in a spartan voice) - Answers WHAT TO PRODUCE?????
HOOOOOOW TO PRODUUUUCE???
FOR WHOOOOOOOM TO PRODUCE????????????
What are the four types of economies? - Answers Traditional, Market, Command, and Mixed
Who decides the three economic questions in a traditional economy? - Answers Custom
