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Economics Chapter 16 Test Review Flashcards | StudBud
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Economics Chapter 16 Test Review
Economics Chapter 16 Test Review
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Questions
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Answers
1
Income - Expenses = ?
Price
Resources
Scarcity
Profit
2
If the price of a
COMPLIMENT
good decreases, what will happen to demand for
your
product?
decrease
increase
3
Economic choices often have long-term, unexpected outcomes.
False
True
4
Which of these is a
FACTOR OF PRODUCTION
?
Demand
Entrepreneurship
Market Force
Mixed Economy
5
Which of these is an example of why the USA has a mixed economic system?
Social Security payments
all of the above
public schools
laws regulating businesses
6
When we draw a supply & demand graph, the
equilibrium
is...
the horizontal axis
the vertical axis
the surplus zone
the point where the curves intersect
7
For the
invisible hand
to work in a market economy, you must have
competition
.
True
False
8
Market Forces (Competition, Profit Motive, Supply & Demand) impact the price and availability (quantity) of goods.
True
False
9
Competition, profit motive, and supply + demand are _____
Market Forces
Factors of Production
Resources
Economic Systems
10
We have
limited
resources for our unlimited needs & wants. In economics, this concept is called
scarcity
factors of production
The Market
11
Improvements in technology shift the supply curve to the...
right (increase supply)
left (decrease supply)
12
Economics is the study of money.
False
True
13
Supply and demand are closely connected to price.
True
False
14
A central authority (government) controls the economy. An example is North Korea.
Mixed Economy
Traditional Economy
Market Econony
Command Economy
15
In a market economy, when PRICES GO DOWN...
Quantity demanded AND quantity supplied go up
Quantity demanded goes down
Quantity demanded goes up
16
Bartering and trading are common in a _____
Command economy
Market economy
Traditional economy
Mixed economy
17
In a
supply & demand
line graph, one axis is
price
and the other axis is
quantity
.
False
True
18
What can a producer do to increase their profit?
Increase income (prices)
Either will work!
Decrease their expenses
19
Quantity supplied
goes up when price goes
down
up
20
The United States has a pure market economy.
True
False
21
_____ is what it costs a supplier to produce one more unit.
Marginal Cost
Quantity Supplied
22
A monopoly is when one company has total control over the supply of a good or service. It's bad for consumers.
True
False
23
Opportunity cost
is the value of
the choice I made
the choice I didn't take (what I gave up)
24
If the price of a
SUBSTITUTE
good increases, what will the demand for
your
product do?
Decrease
Increase
25
You're a producer, and you have a LOT of competition. What can you do to increase sales?
Lower prices
Innovate (create something new or improved)
Either should work!
26
This is NO pure market economy in the world right now.
False
True
27
The major difference between a command economy and a market economy is
the amount of government involvement.
True
False
28
Quantity demanded
decreases when price goes
up
down
29
In a market economy,
competition
encourages...
Businesses to lower prices
Product improvements & innovation
Both
30
Why do we get less use/enjoyment out of each cookie we eat?
Law of Supply
Law of Diminishing Marginal Benefit
31
Who is the "Father of Economics"?
Alan Greenspan
Adam Driver
Adam Smith
Alan Smith
32
Scandals and bad reviews shift the demand curve to the
left (decreases demand)
right (increases demand)
33
This is an example of a supply curve.
False
True
34
I earn $20 an hour. Instead of working 2 hours today, I spend $50 going out with friends. What's my opportunity cost?
$40
$50
$90
