What causes a shift in demand?

A change in something other than price

Which is one of the main characteristics of the free market system?

the right to own private property

consumers buying goods/services

The substitution effect and income effect describe:

Factors that influence consumers buying choices

What is the benefit of competition?

keeps prices down and quality up

Which statement would be the best definition of economics?

the efficient use of scare resources.

Which of the following statements is true about supply:

At a higher price, supply with increase

studbud

Unit 1 review

19 termsStudBud Administration314 plays

Unit 1 Economics Basics

Flashcards19 cardsFPractice quizPHost liveL

Questions 19

Answers

1
All of the following are stages in the circular flow model EXCEPT:
Consumption
Spending
Production
Income
2
As the price of a good goes up, the demand goes:
down
up
stays the same
up and down
3
What causes a shift in demand?
A decrease in price
An increase in price
A change in something other than price
A change in price availability
4
Which is one of the main characteristics of the free market system?
limits on freedom of choice
central economic planning
the right to own private property
an expanded role for government in the economy
5
All of the following are factors of production EXCEPT:
Supply
Labor
Land
Capital
6
An up-down relationship is known as:
Inverse relationship
A supply-side relationship
A normal relationship
direct relationship
7
Factor of production found in nature:
Entrepreneurship
Land
Labor
Capital
8
Demand is about:
producing goods/services
consumers buying goods/services
Finding resources
Selling goods and services
9
An economic system in which the government controls the resources.
Free Market
Capitalism
Socialism
Free Enterprise
10
The substitution effect and income effect describe:
How income changes when buyers change jobs
The amount of a good that a producer is able to make
Factors that influence consumers buying choices
Market changes that effect production of goods
11
What is another term for a good such as a car, house or business that is owned by an individual?
private property
Public good
Incentive
Assets
12
What is the benefit of competition?
The weather is the only factor of production.
keeps prices down and quality up
Markets are controlled by the Government
Workers demands are more important than consumers.
13
Which statement would be the best definition of economics?
the equitable distribution of society's income and wealth.
the printing and circulation of money
How businesses produce goods and services
the efficient use of scare resources.
14
Which of the following statements is true about supply:
At a higher price supply will decrease
At a lower price, supply will be greater
At a higher price, supply with increase
At a lower price, there will be a surplus
15
The law of supply states that, other things being constant, as price increases:
supply increases
supply decreases
quantity supplied increases
quantity supply decreases
16
A person who receives benefits of a good without paying for it:
Free Rider
Mrs. Wren
A beneficiary
A consumer
17
The condition in which our wants are greater than the resources available:
Surplus
subsidy
Scarcity
supply
18
If people can be prohibited from consuming a public good the good is:
Excludable
Nonexcludable
Common good
A private good
19
Something that encourages a person toward action:
A choice
A market
Incentives
An exchange

Unit 1 review Flashcards | StudBud