ECON 1002 FINAL EXAM 2025 PREP QUESTIONS
AND ANSWERS GRADED A+
The market system depends on private property ownership and the protection of
private property rights to
A. ensure that those who own property use it wisely.
B. provide an incentive to maintain property and allow for the orderly transfer of
property ownership.
C. establish the cost of administration and transfer of property.
D. make sure that there are adequate safeguards against theft.
B. provide an incentive to maintain property and allow for the orderly transfer of
property ownership.
The use of capital in the production process
A. replaces labor.
B. improves efficiency, increases output, and provides for growth.
C. improves efficiency, reduces output, and provides for growth.
D. is more expensive than labor.
B. improves efficiency, increases output, and provides for growth.
,"Division of labor" means that workers
A. share the labor needed to complete a job.
B. develop skills needed to complete a job.
C. specialize in tasks that take advantage of their individual abilities and skills.
D. identify the products than can be produced so that they can take advantage of
their individual abilities and skills.
C. specialize in tasks that take advantage of their individual abilities and skills.
When an economy relies on specialization,
A. there will be more efficiency in production, but there will be disruptions in the
distribution of goods.
B. centralized coordination is needed to ensure that everyone obtains the goods
they need.
C. trade enables individuals to obtain the goods in which they do not have a
specialization.
D. trade is established according to the value of the specialized product.
C. trade enables individuals to obtain the goods in which they do not have a
specialization.
,Barter requires that you
A. know the market value of all the goods and services that you want and have to
offer.
B. find a person who has what you want and a person who needs what you have to
offer.
C. are a member of an established barter network.
D. live in an area where there are people with diverse talents and a market with
diverse products.
B. find a person who has what you want and a person who needs what you have to
offer.
The use of money
A. establishes the value of goods and services.
B. provides a common value that makes bartering transactions simpler.
C. provides a common value that makes buying and selling transactions simpler
than would be the case with barter.
D. provides a common value that makes buying and selling transactions simpler as
long as there is one currency in use.
, C. provides a common value that makes buying and selling transactions simpler
than would be the case with barter.
In a market system, scarce goods are allocated through the operation of
A. fixed prices that are determined by consumers and producers acting in the
public interest.
B. market prices that are determined by consumers and producers acting in their
own self-interest.
C. estimated prices that are determined by consumers and producers acting in their
own self-interest.
D. market prices that are determined by consumers and producers acting in the
public's interest.
B. market prices that are determined by consumers and producers acting in their
own self-interest.
In a command economy, scarce goods are allocated by
A. an elected planning board based on the board's preferences.
B. an elected planning board based on the board's long-term priorities.
C. a government-appointed planning board based on the board's long-term
priorities.
D. a government-appointed planning board based on the board's preferences.
AND ANSWERS GRADED A+
The market system depends on private property ownership and the protection of
private property rights to
A. ensure that those who own property use it wisely.
B. provide an incentive to maintain property and allow for the orderly transfer of
property ownership.
C. establish the cost of administration and transfer of property.
D. make sure that there are adequate safeguards against theft.
B. provide an incentive to maintain property and allow for the orderly transfer of
property ownership.
The use of capital in the production process
A. replaces labor.
B. improves efficiency, increases output, and provides for growth.
C. improves efficiency, reduces output, and provides for growth.
D. is more expensive than labor.
B. improves efficiency, increases output, and provides for growth.
,"Division of labor" means that workers
A. share the labor needed to complete a job.
B. develop skills needed to complete a job.
C. specialize in tasks that take advantage of their individual abilities and skills.
D. identify the products than can be produced so that they can take advantage of
their individual abilities and skills.
C. specialize in tasks that take advantage of their individual abilities and skills.
When an economy relies on specialization,
A. there will be more efficiency in production, but there will be disruptions in the
distribution of goods.
B. centralized coordination is needed to ensure that everyone obtains the goods
they need.
C. trade enables individuals to obtain the goods in which they do not have a
specialization.
D. trade is established according to the value of the specialized product.
C. trade enables individuals to obtain the goods in which they do not have a
specialization.
,Barter requires that you
A. know the market value of all the goods and services that you want and have to
offer.
B. find a person who has what you want and a person who needs what you have to
offer.
C. are a member of an established barter network.
D. live in an area where there are people with diverse talents and a market with
diverse products.
B. find a person who has what you want and a person who needs what you have to
offer.
The use of money
A. establishes the value of goods and services.
B. provides a common value that makes bartering transactions simpler.
C. provides a common value that makes buying and selling transactions simpler
than would be the case with barter.
D. provides a common value that makes buying and selling transactions simpler as
long as there is one currency in use.
, C. provides a common value that makes buying and selling transactions simpler
than would be the case with barter.
In a market system, scarce goods are allocated through the operation of
A. fixed prices that are determined by consumers and producers acting in the
public interest.
B. market prices that are determined by consumers and producers acting in their
own self-interest.
C. estimated prices that are determined by consumers and producers acting in their
own self-interest.
D. market prices that are determined by consumers and producers acting in the
public's interest.
B. market prices that are determined by consumers and producers acting in their
own self-interest.
In a command economy, scarce goods are allocated by
A. an elected planning board based on the board's preferences.
B. an elected planning board based on the board's long-term priorities.
C. a government-appointed planning board based on the board's long-term
priorities.
D. a government-appointed planning board based on the board's preferences.
