Devry ECO312 Final Exam /Devry ECO312 Final Exam /Devry ECO312 Final Exam

Question 1.1. (TCO 1) When a state government chooses to build more roads, the required resources are no longer available for spending on public education. This dilemma illustrates the concept of 

production expenses.

unemployment issues.

unintended consequences.

opportunity cost.

Question 2.2. (TCO1) Which is not a factor of production? 

Money

Land

Labor

Capital

Question 3.3. (TCO1) A point on the production possibilities curve is 

attainable and resources are fully employed.

attainable, but resources are unemployed.

unattainable, but resources are unemployed.

unattainable and resources are fully employed.

Question 4.4. (TCO1) A basic characteristic of a command system is that 

wages paid to labor are higher.

government owns most economic resources.

free markets are never permitted in a command economy.

government planners play a limited role in deciding what goods will be produced.