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Economics: Basic Concepts Flashcards | StudBud
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Economics: Basic Concepts
Economics: Basic Concepts
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StudBud Administration
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188 plays
opportunity cost, comparative advantage, trade, demand, supply, equilibrium #Skeeter
Flashcards
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Questions
15
Answers
1
As price goes up, a constant income will
buy more units and increaes quantity demanded
buy fewer units and reduce quantity demanded.
cause demand to shift right
cause demand to shift left
2
When a producer can produce more than another producer, it is said that the first producer has
No Advantage
Comparative Advantage
Competitive Advantage
Absolute Advantage
3
It is not from the benevolence of the butcher or the baker that we get our food, it is from
charity
goodwill
our own work.
his own self interest.
4
Cab companies are very concerned about UBER and LYFT. Why?
The think people will get hurt riding in cabs.
They fear government regulation.
They anticipate the new services will give them a bad name.
They fear a decrease in demand for cab service.
5
When tastes and trends shift toward a product,
supply shifts right
demand shifts left
demand shifts right
supply shifts right
6
When we specialize according to comparative advantage, we can consume _
outside our PPF
less
beyond our ability to produce
more
7
The law of Demand is true for which of the following reasons?
At higher prices, producers want to sell more units.
Substitution Effect
Income Effect
Diminishing Marginal Utility
8
When VW decided to locate its North American headquarters here in Chattanooga,
more people had more income in the Chattanooga area.
businesses opened to supply to VW.
people came to Chattanooga to work for VW.
all of the above.
9
When big events like a cheer leading competition come to Chattanooga, local hotels experience
an increase in demand.
a decrease in demand.
an increase in demand because they are substitute products.
an increase in supply.
10
"It is the maxim of every master of a household never to make at home that which he ______"
get for "free"
steal
buy more cheaply
sell for more
11
Which of the following shifts the demand curve?
weather
price
supply
population
12
Little Jimmy bought a dozen donuts for $6.00. He ate 6 and gave the rest away. Why?
Law of Demand
He no longer liked donuts.
Law of Supply
Diminishing Marginal Utility
13
The law of Demand states
as Price goes up, Quantity Demanded goes up
as Price goes up, Demand goes down
as Price goes up, Demand goes up
as Price goes up, Quantity Demanded goes down
14
When consumers expect prices to rise in the future, they are likely to
boycott products
increase demand today
decrease demand today
postpone purchases
15
When a producer can produce at a lower Opportunity Cost, the producer has
No advantage
Comparative Disadvantage
Comparative Advantage
Absolute Advantage
