Econ 150 Final Exam: Wake Forest
University questions well answered
graded A+
What is economics? - correct answer ✔✔the study of the choices people make to attain their
goals given their scarce resources
What is society's problem? - correct answer ✔✔Scarcity
What is scarcity? - correct answer ✔✔lack of enough resources to satisfy all desired uses of
those resources, if it were produced for free
What is the two part problem in economics? - correct answer ✔✔1.) Human wants are
unlimited
2.) Our ability to satisfy these wants is limited
What are examples of raw materials? - correct answer ✔✔coal, timber, iron, water, etc.
What is labor? - correct answer ✔✔worker's time
What is physical capital? - correct answer ✔✔human-made goods used to make other goods
What is society's fundamental economic problem? - correct answer ✔✔Time and Income are
scarce
Goods (definition) - correct answer ✔✔tangible products with physical dimensions
, Services (definition) - correct answer ✔✔intangible products
The three questions for society - correct answer ✔✔1.) What goods/services should we make?
2.) How should we make these goods/services?
3.) Who should get these goods and services? Allocation
What do questions 1 and 2 revolve around? - correct answer ✔✔Efficiency
What does the 3rd question revolve around? - correct answer ✔✔Equality and fairness
What are the 3 main economic systems? - correct answer ✔✔Command Economy
Market Economy
Traditional Economy
Pros and Cons: Command Economy - correct answer ✔✔Pros: Institute change rapidly and
efficiently, can provide security, can make distribution of income equal
Cons: Extremely difficult to accurately calculate and produce the correct amount of goods and
services, lends itself easily to corruption, and quality suffers
Pros and Cons: Market Economy - correct answer ✔✔Pros: Produces the most possible out of
the limited resources available, larger variety of goods and services produced with better
quality, higher standard of living with faster economic growth
Cons: Division of resources, income, and wealth, possible dislocation of resources
Pros and Cons: Traditional Economy - correct answer ✔✔Pros: Traditional economy is built upon
traditions, customs, and beliefs, often based on one or a few of agriculture, hunting, fishing, and
gathering.
University questions well answered
graded A+
What is economics? - correct answer ✔✔the study of the choices people make to attain their
goals given their scarce resources
What is society's problem? - correct answer ✔✔Scarcity
What is scarcity? - correct answer ✔✔lack of enough resources to satisfy all desired uses of
those resources, if it were produced for free
What is the two part problem in economics? - correct answer ✔✔1.) Human wants are
unlimited
2.) Our ability to satisfy these wants is limited
What are examples of raw materials? - correct answer ✔✔coal, timber, iron, water, etc.
What is labor? - correct answer ✔✔worker's time
What is physical capital? - correct answer ✔✔human-made goods used to make other goods
What is society's fundamental economic problem? - correct answer ✔✔Time and Income are
scarce
Goods (definition) - correct answer ✔✔tangible products with physical dimensions
, Services (definition) - correct answer ✔✔intangible products
The three questions for society - correct answer ✔✔1.) What goods/services should we make?
2.) How should we make these goods/services?
3.) Who should get these goods and services? Allocation
What do questions 1 and 2 revolve around? - correct answer ✔✔Efficiency
What does the 3rd question revolve around? - correct answer ✔✔Equality and fairness
What are the 3 main economic systems? - correct answer ✔✔Command Economy
Market Economy
Traditional Economy
Pros and Cons: Command Economy - correct answer ✔✔Pros: Institute change rapidly and
efficiently, can provide security, can make distribution of income equal
Cons: Extremely difficult to accurately calculate and produce the correct amount of goods and
services, lends itself easily to corruption, and quality suffers
Pros and Cons: Market Economy - correct answer ✔✔Pros: Produces the most possible out of
the limited resources available, larger variety of goods and services produced with better
quality, higher standard of living with faster economic growth
Cons: Division of resources, income, and wealth, possible dislocation of resources
Pros and Cons: Traditional Economy - correct answer ✔✔Pros: Traditional economy is built upon
traditions, customs, and beliefs, often based on one or a few of agriculture, hunting, fishing, and
gathering.
