Question

period date 12/10/25
economics - final exam review
unit 1:
word bank: production, business, efficiently, compete, education, incentive, tools, scarce,
government, human, opportunity, free, factory, entrepreneurship, everyone, choices, productive,
possibilities, nation, cost, command, basic, beliefs, everyone, poor

1. since everything is ______ and we have unlimited wants, economics is really just the

study of how everyone has to make ______. therefore, it is important that businesses
____ allocate their resources in order to be as ____ as possible.
economists use a ______ curve to show alternative ways a
business or ______ can use its resources. using this curve, we can see that if
businesses choose to produce more of one good, they will have to sacrifice some output of the
other. the amount that a business has to give up as the result of a decision is called the
______. this term could also be described as the best alternative to
any decision.

1. there are four types of economic systems. they are traditional, mixed market, ______ ,

and ____ market. a traditional economy is the most ____ , ruled by customs
and ______ . in a free market economy, economic decisions are made by
______ , whereas in a command economy all decisions are made by the
____ . in a command economy goods are generally of ____ quality because
workers have little ______ to work hard. a free market economy tends to produce
higher quality goods because firms have to ______ for the consumer dollar.

1. the four factors of production are land, labor, capital, and ______ . land and

labor are self - explanatory. capital can be divided into two types, physical and ______ .
an example of physical capital would be a ____ or ____ . learning a
new skill, job training or getting an ______ would be human capital. an
entrepreneur may be rich or poor, but they must start a ______ to earn the title.

Explanation:

Question 1

Step 1: Analyze the first blank

In economics, the basic concept is that resources are scarce (limited) while wants are unlimited. So the first blank should be "scarce".

Step 2: Analyze the second blank

Since we have unlimited wants and scarce resources, we have to make "choices" about how to use resources. So the second blank is "choices".

Step 3: Analyze the third blank

Businesses need to allocate resources to be as "productive" as possible (using resources efficiently to produce goods/services). So third blank: "productive".

Step 4: Analyze the fourth blank

To be efficient in production, businesses aim to be "efficient". So fourth blank: "efficient".

Step 5: Analyze the fifth blank

Economists use a "production possibilities" curve to show alternative production combinations. So fifth blank: "production possibilities".

Step 6: Analyze the sixth blank

The curve shows how a "business" (or economy) can use resources. So sixth blank: "business".

Step 7: Analyze the seventh blank

The amount given up in a decision is the "cost" (opportunity cost). So seventh blank: "cost".

Step 8: Analyze the eighth blank

Opportunity cost is the best alternative "forgone" (given up). So eighth blank: "forgone".

Step 1: Analyze the first two blanks for economic systems

The four economic systems are traditional, mixed market, "command", and "free" market. So first blank: "command", second blank: "free".

Step 2: Analyze the third blank

Traditional economy is the most "basic" (simple, based on traditions). So third blank: "basic".

Step 3: Analyze the fourth blank

Traditional economy is ruled by customs and "beliefs" (cultural/traditional beliefs). So fourth blank: "beliefs".

Step 4: Analyze the fifth blank

In free market, decisions are made by "everyone" (consumers and producers interacting). So fifth blank: "everyone".

Step 5: Analyze the sixth blank

In command economy, decisions are made by the "government". So sixth blank: "government".

Step 6: Analyze the seventh blank

In command economy, goods are often of "poor" quality (due to lack of incentive). So seventh blank: "poor".

Step 7: Analyze the eighth blank

Workers have little "incentive" to work hard in command economy (no profit motive, etc.). So eighth blank: "incentive".

Step 8: Analyze the ninth blank

Firms in free market "compete" for consumer dollars (to get customers). So ninth blank: "compete".

Step 1: Analyze the first blank (factors of production)

The four factors are land, labor, capital, and "entrepreneurship". So first blank: "entrepreneurship".

Step 2: Analyze the second blank (capital types)

Capital is physical and "human" (human capital is skills/knowledge). So second blank: "human".

Step 3: Analyze the third and fourth blanks (physical capital examples)

Examples of physical capital: "factory", "tools" (machinery, equipment). So third blank: "factory", fourth blank: "tools" (other examples like "machinery" also work).

Step 4: Analyze the fifth blank (human capital example)

Getting an "education" (degree, training) is human capital. So fifth blank: "education".

Step 5: Analyze the sixth blank (entrepreneur's action)

An entrepreneur starts a "business" to be an entrepreneur. So sixth blank: "business".

Answer:

(Question 1 blanks in order):
scarce, choices, productive, efficient, production possibilities, business, cost, forgone

Question 2