The law of demand states

As prices increase, demand falls

Opportunity cost is...

The second best option not chosen when we make a decision

positive sloping (upwards from bottom left to top right)

What are the factors of production?

Land, labor, capital and entrepreneurship

One example of thinking at the margin (marginal analysis) is

Deciding if working extra hours is more beneficial than studying

What is an inferior good?

A good where the demand decreases with an increase in consumer income

People's willingness to buy goods or services.

All of the alternatives given up when a choice is made.

Goods used in place of one another

Economics is the study of

People allocating limited resources to satisfy unlimited wants

will be in higher demand if a person’s income increases.

Marginal Analysis is a decision making tool that compares:

Marginal costs and marginal benefits

What is marginal utility?

The extra satisfaction we get from using one more unit

Which of the following describes a command economy?

the government makes all economic decisions

Products and services businesses provide.

What is a traditional economy?

An economy that is based on what your ancestors did.

What is a mixed economy?

Combines planned (command) and market economies

What is the definition of scarcity?

limited resources for unlimited wants/needs

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Economics Unit 1

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Questions 44

Answers

1
The law of demand states
As prices increase, supply increases
As prices increase, demand falls
As prices increase, supply falls
As prices increase, demand increases
2
Opportunity cost is...
The second best option not chosen when we make a decision
The first option chosen when we make a decision
The last option when we make a decision
The decision making process
3
A supply curve is
negative sloping (downwards from top left to bottom right)
positive sloping (upwards from bottom left to top right)
4
New technology is being used at a clothing factory. Will this shift supply or demand?
Demand
Supply
5
What are the factors of production?
Land, labor, capital and entrepreneurship
There are no factors of production
Employment, ethics, age and gender
Land, labor and enterprise
6
Price controls: price ____ and price ____.
Wall and Stair
Ceilings and Floor
Roof and Sidewalk
Bed and Bathroom
7
Materials used by Shein are said to be toxic. Will this shift supply or demand?
Demand
Supply
8
All choices entail an opportunity cost.
False
True
9
One example of thinking at the margin (marginal analysis) is
Putting all your money in a savings account because interest rates are high
Deciding if working extra hours is more beneficial than studying
Determining if it is better to spend your savings on a new phone or on a TV
Buying a car you don’t like because it's cheaper than the one you want
10
The government intervention through taxes, regulations, and subsidies affects:
demand
supply
11
What is an inferior good?
A good which exceeds expectations
A good better than all other options
A good which is below expectations
A good where the demand decreases with an increase in consumer income
12
Lawyers, Teachers, Doctors, and Secretaries are examples of what Factor of Production?
Land
Capital
Entrepreneurship
Labor
13
What is the opportunity cost of moving from point B to point A?
20 bushels of corn
15 bushels of corn
15 robots
20 robots
14
Demand is...
A person who makes a good or provides a service.
Goods that are used to make other goods/to provide services.
Something people buy that you can hold or touch.
People's willingness to buy goods or services.
15
If the demand curve shifts left, what will happen to the market price and quantity?
They both go up
Price rises, quantity falls
Price falls, quantity rises
They both go down
16
Compliments are
Goods used in place of one another
Goods bought and used together
17
Tools, machinery, and factories are examples of
Labor
Land
Entrepreneurship
Capital
18
Market Equilibrium is when the demand curve?
Meets the Supply Curve
When there is a steady supply
Is at its highest value
Is at its lowest value
19
A trade off is
When you buy materials from other countries.
All of the alternatives given up when a choice is made.
The next best option given up.
When you evaluate with criteria.
20
Substitutes are
Goods used in place of one another
Goods bought and used together
21
Economics is the study of
People allocating limited resources to satisfy unlimited wants
Government deciding what to produce
People controlling money in an economy
Consumers deciding what to buy
22
Is the following graph showing a price ceiling or price floor?
Price ceiling
Price floor
23
Good or Service?
service
good
24
A normal good
will be in higher demand if a person’s income increases.
will be in higher demand if a person’s income decreases.
will be purchased, regardless of changes in income.
has not been damaged.
25
Marginal Analysis is a decision making tool that compares:
Marginal costs and marginal benefits
Marginal Product and benefits
Marginal utility and benefits
Costs and benefits
26
What is marginal utility?
A graph that shows the quanitity demanded at every price
The opportunity cost of a decision
The extra satisfaction we get from using one more unit
27
Which of the following describes a command economy?
there is no government intervention
the government makes all economic decisions
people and private businesses decide what to produce
there is some government intervention
28
Good or Service?
good
service
29
The Law of Supply is
based on consumers behavior
A direct relationship
says that when price goes up, demand goes down
An inverse relationship
30
Is the image in the graph a price ceiling or a price floor?
Price Floor
Price Ceiling
31
What is the opportunity cost of moving from point A to point B?
20 robots
15 bushels of corn
15 robots
20 bushels of corn
32
Supply is...
Something people buy that you can hold or touch.
Products and services businesses provide.
To do a certain job.
The money you earn.
33
Which of the following would not be considered a normal good?
Groceries
Corvette
Motorcycle
Public Transportation
34
Right before a snow storm, what happens to the demand of shovels and salt?
I have no idea
Stays the same
Increases
Decreases
35
What is a traditional economy?
There is no such thing as a traditional economy.
An economy that is controlled by the market.
An economy that the government maintains.
An economy that is based on what your ancestors did.
36
The resources used to make all goods and services are
opportunity costs
factors of production
production possibilities
trade offs
37
Good or Service?
good
service
38
Which of these factors may cause a shift in the demand curve?
All of the above
A change in trends and fashions
A change in the size of the population
Good or bad publicity
39
When supply decreases the supply curve shifts
Right
Left
40
We use economic principles and concepts everyday.
True
False
41
What is a mixed economy?
Combines planned (command) and market economies
Economy where the government has complete control
There is no mixed economy
Economy where trade is the only form of currency
42
When demand increases, the demand curve shifts
Right
Left
43
What is the definition of scarcity?
unlimited resources for limited wants.needs
unlimited needs for unlimited wants
limited resources for unlimited wants/needs
unlimited wants for unlimited needs
44
Good or Service?
good
service

Economics Unit 1 Flashcards | StudBud