Economics Final Exam Review 1. The value of the next best alternative is the ________________________. 2. A company’s office building is an example of ___________________. 3. A cow is an example of _______________________. 4. A __________________ is someone who starts a new business. 5. Adam Smith’s “invisible hand” refers to the role of the _________________. 6. According to Adam Smith, ______________ should not interfere in the marketplace. 7. A major characteristic of a pure market economy is unrestricted ________________. 8. It is easier to start your own business is a ______________ economy. 9. The word ____________ means fairness. 10. Name one country that has a command economy. 11. Every purchase decision involves the use of two scarce resources, _________ and __________. 12. “Bait and switch” is an example of ______________ advertising. 13. A promise to repair or replace a faulty product with a certain time is a ____________. 14. The money people have left over after they have paid their taxes is called ____________________ income. 15. A financial institution that is owned and operated by members to provide savings accounts and low interest loans is a __________ ___________. 16. According to the law of demand, when the price of an item goes up, the quantity demanded _____________. 17. According to the law of supply, higher prices prompt producers to produce ___________. 18. When the price of a good is too high, consumers look for _______________. 19. The quantity demanded of a product is affected by _______________. 20. The law of _______________ ______________ states that the more you have of something, the less satisfaction you will get from an additional unit. 21. A _________ ___________ is a temporary partnership. 22. One advantage of an _____________ is more stable prices. 23. The four Ps of ______________ include product, promotion, and place. 24. The purpose of ______________ is to convince consumers that a certain product will add to their utility. 25. The largest one- day point drop in the Dow-Jones Industrial Average took place in ________.