Economics 101 Exam Questions
and Answers 100% Pass
scarcity - CORRECT ANSWER-limited quantities of resources to meet unlimited
wants
Factors of Production - CORRECT ANSWER-Land, Labor, Capital,
Entrepreneurship
Physical Capital - CORRECT ANSWER-human made object ex: machines
Human Capital - CORRECT ANSWER-human knowledge & experience/skill ex:
writing, reading, typing
shortage - CORRECT ANSWER-wanting more of a good than producers are
willing to make or can make so there is a limited supply ex: gas
opportunity cost - CORRECT ANSWER-the best alternative you miss out on
when you make choice (ex: if you work you miss out on friends)
trade off - CORRECT ANSWER-get something but have to give up something
Guns or Butter - CORRECT ANSWER-The choice between spending money on
military or domestic needs
, Cost/Benefit Analysis - CORRECT ANSWER-Weighing what you sacrifice
compared to what you gain to help you make the best decision
Traditional Economy - CORRECT ANSWER-Economy based on trade, grow
their own food, do things as they have in the past. Example: most of Africa,
Australian Outback.
Free Enterprise/Free Market - CORRECT ANSWER-Individuals make all (most)
of the economic decisions, people earn profits based on supply and demand.
Command Economy - CORRECT ANSWER-The government makes all the
decisions. Example: North Korea, Cuba, USSR
Mixed Economy - CORRECT ANSWER-Individuals have freedom to start
businesses and people can make choices BUT government is involved for safety,
regulations, law and defense. Example: US Economy
Demand - CORRECT ANSWER-To desire something and be able to pay for it.
substitute good - CORRECT ANSWER-Item that replaces another item: ex:
Butter for Margarine
complementary good - CORRECT ANSWER-Two good that are bought and sold
together: ex:toothpaste/tooth brush
supply - CORRECT ANSWER-amount of goods available
fixed cost - CORRECT ANSWER-you always have to pay this amount ex: rent,
taxes, insurance
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED
and Answers 100% Pass
scarcity - CORRECT ANSWER-limited quantities of resources to meet unlimited
wants
Factors of Production - CORRECT ANSWER-Land, Labor, Capital,
Entrepreneurship
Physical Capital - CORRECT ANSWER-human made object ex: machines
Human Capital - CORRECT ANSWER-human knowledge & experience/skill ex:
writing, reading, typing
shortage - CORRECT ANSWER-wanting more of a good than producers are
willing to make or can make so there is a limited supply ex: gas
opportunity cost - CORRECT ANSWER-the best alternative you miss out on
when you make choice (ex: if you work you miss out on friends)
trade off - CORRECT ANSWER-get something but have to give up something
Guns or Butter - CORRECT ANSWER-The choice between spending money on
military or domestic needs
, Cost/Benefit Analysis - CORRECT ANSWER-Weighing what you sacrifice
compared to what you gain to help you make the best decision
Traditional Economy - CORRECT ANSWER-Economy based on trade, grow
their own food, do things as they have in the past. Example: most of Africa,
Australian Outback.
Free Enterprise/Free Market - CORRECT ANSWER-Individuals make all (most)
of the economic decisions, people earn profits based on supply and demand.
Command Economy - CORRECT ANSWER-The government makes all the
decisions. Example: North Korea, Cuba, USSR
Mixed Economy - CORRECT ANSWER-Individuals have freedom to start
businesses and people can make choices BUT government is involved for safety,
regulations, law and defense. Example: US Economy
Demand - CORRECT ANSWER-To desire something and be able to pay for it.
substitute good - CORRECT ANSWER-Item that replaces another item: ex:
Butter for Margarine
complementary good - CORRECT ANSWER-Two good that are bought and sold
together: ex:toothpaste/tooth brush
supply - CORRECT ANSWER-amount of goods available
fixed cost - CORRECT ANSWER-you always have to pay this amount ex: rent,
taxes, insurance
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED
