Which of the following is an example of opportunity cost?

The Chinese food that you gave up when you chose Italian

Economics is best described as the study of how

people choose to satisfy unlimited wants with scare supply

If both supply and demand for a good increase, which of the following will definitely happen?

Equilibrium quantity will increase

A shortage occurs in a market when:

the actual price is lower than the equilibrium price

To say that "there is a scarcity of gold" means that:

There is not enough gold to satisfy people's demand

In economics, the concept of opportunity cost is:

Defined to be the highest-valued alternative

A rightward shift of a market supply curve might be caused by:

The entry of new firms in the industry

The change in the quantity demanded of any good is always caused by:

A change in the price of that good

Which of the following is related to the concept of trade-off used in economics?

Giving up one good in order to obtain some other good

Which of the following would lead to a rightward shift in the demand curve for golf balls?

An increase in the number of golfers

Which of the following would lead to an increase in the equilibrium price of product X?

Increase in the price of machinery used to produce X

Supply curves applicable to shorter periods of time tend to be:

more inelastic than supply curves for longer periods of time

Goods are scarce when:

The amount people want is more than the amount available

Which of the following will result in an outward shift of the production possibilities curve?

An improvement in the quality of resources

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Economics Study Guide

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Questions 20

Answers

1
Which of the following is an example of opportunity cost?
Sweets given up by a person who doesn't like sweets
The Chinese food that you gave up when you chose Italian
The price paid for a ticket when deciding to go to a movie
The tuition that you pay to attend college
2
Economics is best described as the study of how
people choose to satisfy unlimited wants with scare supply
scarce labor can be replaced by unlimited capital
scarce material wants are allocated btwn unlimited resources
capitalism is superior to any other economic systems
3
Which of the following would cause the demand for a good to be relatively inelastic?
None of the above
There is ample time to adjust to price changes
The good has a large number of close substitutes
The good is a necessity
4
If both supply and demand for a good increase, which of the following will definitely happen?
Equilibrium price will increase
Equilibrium price will decrease
Equilibrium quantity will increase
Equilibrium price will remain the same
5
A shortage occurs in a market when:
the actual price is lower than the equilibrium price
the quantity consumers are willing to purchase decreases
a price floor is set in the market
quantity supplied is greater than the equilibrium price
6
To say that "there is a scarcity of gold" means that:
There are very few substitutes for gold
The demand for gold is changing
Gold prices will plummet
There is not enough gold to satisfy people's demand
7
In economics, the concept of opportunity cost is:
The methodology that govt economists use to determine debt
Defined to be the highest-valued alternative
Quantifiable only if you know the real prices of goods
Best illustrated by knowing why consumers choose goods
8
A rightward shift of a market supply curve might be caused by:
An increase in the price of the final product
A decrease in the income of consumers
An increase in the wages of labor employed in the industry
The entry of new firms in the industry
9
The change in the quantity demanded of any good is always caused by:
A change in the price of that good
A change in the price of substitute
An increase or decrease in the population
A change in consumers' preferences for that good
10
Which of the following is related to the concept of trade-off used in economics?
The tuition you pay to attend college
Giving up one good in order to obtain some other good
Not having enough information available to make a decision
Paying a high price for a movie ticket on the first day
11
Which of the following would lead to a rightward shift in the demand curve for golf balls?
An increase in the price of golf clubs
A decrease in the popularity of golf
A decrease in the price of golf balls
An increase in the number of golfers
12
When constructing production possibility curves for economy, which is assumed to be constant?
The quantity of goods produced
The price level
The government budget
The quantity of resources
13
Which of the following would lead to an increase in the equilibrium price of product X?
Technological advance in the production of good X
Increase in the price of machinery used to produce X
Decrease in the price of good Y which is a substitute for X
An increase in consumer incomes if X is an inferior good
14
Supply curves applicable to shorter periods of time tend to be:
more inelastic than supply curves for longer periods of time
more elastic than supply curves for longer periods of time
represented by horizontal lines parallel the quantity axis
perfectly elastic
15
A point inside a nation's production possibilities curve can represent:
A recession
A technological advancement
Economic growth
An increase in population size
16
The additional satisfaction that a consumer receives from one more unit of a good is known as
Disutility
Marginal utility
Profit
Total utility
17
Goods are scarce when:
Their price is too high
The amount people want is more than the amount available
Their price is controlled
Their price is too low
18
A decrease in the price of butter would most likely decrease the demand for
Milk
Coffee beans
Margarine
Jelly
19
Margarine and butter can both be used as a spread on toast. This means that they are:
Giffen goods
Independent goods
Substitutes in consumption
Complements in consumption
20
Which of the following will result in an outward shift of the production possibilities curve?
An improvement in the quality of resources
A decrease in the quantity of resources
An increase in unemployment rate
A fall in education standards

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