TJC ECONOMICS FINAL EXAM LATEST
2024/2025 QUESTIONS AND ANSWERS
, scarcity - ANSWERrefers to inherently limited nature of society's resources, given
society's unlimited wants and needs
economics - ANSWERstudy of how individuals and societies allocate limited resources
to satisfy their practically unlimited wants
entrepreneur - ANSWERA person who starts up and takes on the risk of a business
factors of production - ANSWERland, labor, capital, entrepreneurship
land (resources) - ANSWERnatural resources
labor - ANSWEReffort and skills of people who work to produce goods and services
capital - ANSWERhelp produce other valuable goods and services in the future
trade-off - ANSWERdecision maker has to choose course of action, sacrifice something
to get more of something else
guns or butter - ANSWERa phrase that refers to the trade-offs that nations face when
choosing whether to produce more capital or consumer goods
opportunity cost - ANSWERthe highest-valued alternative that must be sacrificed in
order to get something else
cost-benefit analysis - ANSWERrequires purposeful evaluation of the available
opportunities to make the best decision possible
production possibilities frontier - ANSWERa model that illustrates the combinations of
outputs that a society can produce if all of its resources are being used efficiently
efficiency - ANSWERon the PPF curve
underutilization - ANSWERinside the PPF curve
economic growth - ANSWERThe increase in the potential level of real output the
economy can produce over a period of time
comparative advantage - ANSWERthe situation where an individual, business, or
country can produce at a lower opportunity cost than a competitor can
2024/2025 QUESTIONS AND ANSWERS
, scarcity - ANSWERrefers to inherently limited nature of society's resources, given
society's unlimited wants and needs
economics - ANSWERstudy of how individuals and societies allocate limited resources
to satisfy their practically unlimited wants
entrepreneur - ANSWERA person who starts up and takes on the risk of a business
factors of production - ANSWERland, labor, capital, entrepreneurship
land (resources) - ANSWERnatural resources
labor - ANSWEReffort and skills of people who work to produce goods and services
capital - ANSWERhelp produce other valuable goods and services in the future
trade-off - ANSWERdecision maker has to choose course of action, sacrifice something
to get more of something else
guns or butter - ANSWERa phrase that refers to the trade-offs that nations face when
choosing whether to produce more capital or consumer goods
opportunity cost - ANSWERthe highest-valued alternative that must be sacrificed in
order to get something else
cost-benefit analysis - ANSWERrequires purposeful evaluation of the available
opportunities to make the best decision possible
production possibilities frontier - ANSWERa model that illustrates the combinations of
outputs that a society can produce if all of its resources are being used efficiently
efficiency - ANSWERon the PPF curve
underutilization - ANSWERinside the PPF curve
economic growth - ANSWERThe increase in the potential level of real output the
economy can produce over a period of time
comparative advantage - ANSWERthe situation where an individual, business, or
country can produce at a lower opportunity cost than a competitor can
