Economics Final Exam Questions with
Correct Answers 2026-2027
Economics - CORRECT ANSWER -
the study of how people seek to satisfy their needs and wants by making choices
Horizontal Merger - CORRECT ANSWER -
the combination of two or more firms competing in the same market with the same good or ser
vice
Vertical Merger - CORRECT ANSWER -
the combination of two or more firms involved in different stages of producing the same good o
r service
Shortage - CORRECT ANSWER -a situation in which a good or service is unavailable
Scarcity - CORRECT ANSWER -limited quantities of resources to meet unlimited wants
Factors of Production - CORRECT ANSWER -
land, labor, and capital; the three groups of resources that are used to make all goods and servic
es
Entrepreneur - CORRECT ANSWER -
ambitious leader who combines land, labor, and capital to create and market new goods or servi
ces
Trade-Off - CORRECT ANSWER -the alternative we sacrifice when we make a decision
, Opportunity Cost - CORRECT ANSWER -
the most desirable alternative given up as the result of a decision
Human Capital - CORRECT ANSWER -
the skills and knowledge gained by a worker through education and experience
Physical Capital - CORRECT ANSWER -all human-
made goods that are used to produce other goods and services; tools and buildings
ThinkingRat the Margin - CORRECT ANSWER -
deciding whether to do or use one additional unit of some resource
Production Possibility Graph - CORRECT ANSWER -
a graph that shows alternative ways to use an economy's resources
Production Possibility Frontier - CORRECT ANSWER -
the line on a production possibilities graph that shows the maximum possible output for a speci
ficReconomy
Adam Smith - CORRECT ANSWER -
classic economist that believed the market could regulate itself
Classical Economics - CORRECT ANSWER -the idea that free markets can regulate themselves
Free MarketR- CORRECT ANSWER -
individuals and privately owned businesses own the factors of production and therefore, make
what they want and buy what they want
Correct Answers 2026-2027
Economics - CORRECT ANSWER -
the study of how people seek to satisfy their needs and wants by making choices
Horizontal Merger - CORRECT ANSWER -
the combination of two or more firms competing in the same market with the same good or ser
vice
Vertical Merger - CORRECT ANSWER -
the combination of two or more firms involved in different stages of producing the same good o
r service
Shortage - CORRECT ANSWER -a situation in which a good or service is unavailable
Scarcity - CORRECT ANSWER -limited quantities of resources to meet unlimited wants
Factors of Production - CORRECT ANSWER -
land, labor, and capital; the three groups of resources that are used to make all goods and servic
es
Entrepreneur - CORRECT ANSWER -
ambitious leader who combines land, labor, and capital to create and market new goods or servi
ces
Trade-Off - CORRECT ANSWER -the alternative we sacrifice when we make a decision
, Opportunity Cost - CORRECT ANSWER -
the most desirable alternative given up as the result of a decision
Human Capital - CORRECT ANSWER -
the skills and knowledge gained by a worker through education and experience
Physical Capital - CORRECT ANSWER -all human-
made goods that are used to produce other goods and services; tools and buildings
ThinkingRat the Margin - CORRECT ANSWER -
deciding whether to do or use one additional unit of some resource
Production Possibility Graph - CORRECT ANSWER -
a graph that shows alternative ways to use an economy's resources
Production Possibility Frontier - CORRECT ANSWER -
the line on a production possibilities graph that shows the maximum possible output for a speci
ficReconomy
Adam Smith - CORRECT ANSWER -
classic economist that believed the market could regulate itself
Classical Economics - CORRECT ANSWER -the idea that free markets can regulate themselves
Free MarketR- CORRECT ANSWER -
individuals and privately owned businesses own the factors of production and therefore, make
what they want and buy what they want
