positive sloping (upwards from bottom left to top right)

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

Deciding if working extra hours is more beneficial than studying

Marginal Analysis is a decision making tool that compares:

Marginal costs and marginal benefits

Economics is the study of

People allocating limited resources to satisfy unlimited wants

What is a mixed economy?

Combines planned (command) and market economies

Products and services businesses provide.

The law of demand states

As prices increase, demand falls

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

What is marginal utility?

The extra satisfaction we get from using one more unit

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.

What is the definition of scarcity?

limited resources for unlimited wants/needs

What are the factors of production?

Land, labor, capital and entrepreneurship

Which of the following describes a command economy?

the government makes all economic decisions

Opportunity cost is...

The second best option not chosen when we make a decision

What is a traditional economy?

An economy that is based on what your ancestors did.

Goods used in place of one another

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

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Economics Unit 1

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Questions 44

Answers

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

Economics Unit 1 Flashcards | StudBud