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Econ 003 Supplemental Instruction | Midterm Review Flashcards | StudBud
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Econ 003 Supplemental Instruction | Midterm Review
Econ 003 Supplemental Instruction | Midterm Review
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A review for the upcoming midterm in Econ 003.
Flashcards
23 cards
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Practice quiz
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Host live
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Questions
23
Answers
1
Which country has an absolute advantage in car production?
Germany
United States
Neither
2
An example of substitutes is
Lamborghini
Peanut Butter and Jelly
McDonalds
Starbucks and Coffee Bean
3
Which of the following would cause a decrease (shift left) in demand?
Number of buyers in the market increases
The good is currently in style
The price of a substitute good falls
Income rises (normal good)
4
Which of the following would cause an increase (shift right) in demand?
The number of sellers increases
The number of buyers in the market falls
Belief that the future price of the good will decline
The price of a complimentary good (compliment) falls
5
Which of the following is NOT a type of incentive?
Positive
Indirect
Negative
Neutral
6
Which of the following is NOT a characteristic of a Perfectly Competitive Market?
Many Buyers and Sellers
Low Barriers to Entry
Price Setter
Identical Goods
7
The price of gasoline falls. We can expect to happen to the demand for fuel efficient cars?
Decrease because price of related good falls
Decrease because increase in income
Increase because price of input increases
Decrease because price of input falls
8
Which of the following would cause a decrease (shift left) in supply?
Income falls (normal good)
Business taxes decrease
The number of sellers increases
The cost of an input rises
9
The demand curve shifts to the right. What happens to the EQ price and quantity?
Price Decreases and Quantity Increases
Price Increases and Quantity Decreases
Price and Quantity Decrease
Price and Quantity Increase
10
Which of the following would cause an increase (shift right) in supply?
Subsidies decrease
Income rises
Cost of an input rises
The number of sellers increases
11
Based on how you did on this Quiz, how much do you need to study for your midterm?
Not too much
Not at all!
A Lot
24/7!
12
The following graph is a depiction of what?
Equilibrium
Demand Curve
Production Possibilities Frontier (PPF)
Supply Curve
13
Point D is...?
An Efficient Point
An Inefficient Point
Impossible / Unattainable
The Best Point
14
A point inside the Production Possibilities Frontier is?
Impossible
Inefficient
Efficient
Ideal
15
Which of the following would cause a decrease (shift left) in demand?
Cost of an input rises
Number of buyers in market increases
People believe that the future price of a good will decline
Income rises (normal good)
16
A new medical study reveals red wine reduces heart disease. What happens to supply and demand?
Supply Red Wine Decreases
Demand for Red Wine Decreases
Supply for Red Wine Increases
Demand for Red Wine Increases
17
The Law of Demand states...
When Price rises, Qd falls,
When Demand increases, Price increases
When Qd falls, Price falls
When Price falls, Qd falls
18
Which of the following would cause a decrease (shift left) in supply?
Cost of an input falls
Business taxes increase
The price of a substitute good falls
Subsidies increase
19
Which of the following is NOT one of the Five Foundations of Economics?
Scarcity
Incentives Matter
Marginal Thinking
Opportunity Cost
20
Which of the following would cause an increase (shift right) in supply ?
The number of buyers in the market increases
The number of sellers decreases
The cost of an input rises
Business employs more efficient technology
21
Countries choose to specialize in a good that they have a...
the most of
Absolute Advantage in
Comparative Advantage in
the most valuable good
22
Economics is the study of how
rational individuals affect the market
people firms and organizations allocate scarce resources
the economy works
individual decision making helps the economy
23
Which of the following would cause an increase (shift right) in demand?
Income falls (normal good)
The number of buyers in the market increases
The number of buyers in the market falls
The price of a substitute falls
