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Chapter 16 Introduction to Economics Flashcards | StudBud
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Chapter 16 Introduction to Economics
Chapter 16 Introduction to Economics
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1
What is economics?
social science
produce and distribute goods and services
satisfy people's wants and needs
all the above
2
What does surplus mean?
Small
To have less
To have extra
Skinny
3
Surplus
asset used to secure a loan
too much of an item in stock
hoe fast an asset can be turned into cash
profit made from investments
4
Equilibrium price is where the demand of a product/service is equal to the supply of a product/service.
False
True
5
Variable cost is known as.....?
time to go to sleep
cost that varies with the level of input
how much food i eat in less than an hour
how much money i make in a day
6
What Graph is this?
Demand
Supply
7
When the price of a good is low,
people demand less of it.
people demand more of it.
people supply more of it.
firms supply more of it.
8
What graph is this?
Supply
Demand
9
How are nations similar to individuals in regard to economics?
Nations focus on producing private goods and services.
Nations must make choices about limited resources.
Nations do not have to pay for public goods and services.
Nations must pay taxes.
10
When demand is greater than supply, a _________ will result
equilibrium
balance
shortage
surplus
11
The point where the supply and demand curve meet is called:
None of the above
Surplus
Point of Equilibrium
Shortage
12
When private individuals make economic decisions based upon their own interests
traditional
market
command
mixed
13
The following graph displays
A decrease in demand
An increase in demand
a decrease in quantity demanded
An increase in quantity demanded
14
What is economics?
the study of the government
sales
The study of how goods/ services are produced, and consumed
money remaining from revenues after expenses are paid
15
A surplus typically indicates that...
suppliers cannot meet the demand
the price is too high
gov't price controls are needed
the market is in equilibrium
16
Shortages is a common change caused by demand and supply.
False
True
17
Demand is
another name for a service
a name of a coin used in the Caribbean
the number of people who want or need something
the amount of something that is available
18
In what way are free markets efficient?
Everyone is assured basic necessities
Information is communicated around the world
Buyers and sellers trade until both are satisfied
Decisions are made quickly with little confusion
19
The point where demand and supply cross is called
Equilibrium
Equilibrium
It's Equilibrium isn't it?
Equilibrium
20
What do businesses utilize when making decisions among various projects?
benefit cost analysis
profit margin analysis
optional analysis
trade off analysis
21
Who determines demand?
Queen
Sellers
Buyers
22
In a command economy, economic decisions are made by the
market
government
prducers
consumers
23
What forces people and nations to make economic choices?
abundance of goods
need for shelter
desire for profit
scarcity
24
Which of the following are fixed costs?
Raw Materials
Rent
Electric bill
Inputs of production
25
According to the rule of marginal analysis, one should continue producing a good/service until?
total cost is equal to total revenue
marginal cost is less than the marginal revenue
total cost is more than total revenue
marginal cost is equal to marginal revenue
26
When the supply of a good is low, and the demand is high, what usually happens to the price of the good?
It doesn't change.
It goes down.
It goes up.
It depends on the item.
27
Who determines demand?
Sellers
Buyers
28
People who BUY goods and services are called . . .
Producers
Students
Consumers
Helpers
29
What happens when the supply is high and the demand is low?
The Prices tend to increase
The Market is at Equilibrium
The Prices tend to fall
Prices go crazy and have a party
30
What does a surplus occur?
When prices are below equilibrium
When quantity demand exceeds quantity supplied
When prices are above equilibrium
When quantity supplied is equal to quantity demanded
31
decisions are based on customs and beliefs
command
mixed
traditional
market
32
in a market economy, prices serve as signals to buyers and sellers.
True
False
33
The Law of Demand states that
As price increases, quantity decreases.
Price changes have no effect on quantity.
Price changes shift the demand curve.
As price increases, quantity increases.
34
Which economy is in the United states?
Market economy
Command economy
Mixed economy
