If you are making a trade-off, you are

choosing one good or service over another

The law of demand states

as price increases, demand decreases

The basic economic problem that people must solve is

satisfying unlimited wants with limited resources

the law of supply states

as price increases, supply increases

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Microeconomics

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Questions 20

Answers

1
Demand for Zaxbys decreases when a new Cookout opens. Why did demand decrease?
Substitute
Taste/preference
Complement
Income
2
If you are making a trade-off, you are
making impossible decisions
making an investment
choosing one good or service over another
making an opportunity cost
3
An economy in which the government makes most/all of the economic decisions is:
Traditional economy
Command economy
Mixed economy
Market economy
4
Which of these is a "want"?
Housing
Food
Entertainment
Water
5
Ms. Maier chooses to go to Dunkin instead of Starbucks. What is her opportunity cost?
Dunkin
Deciding between the two
Getting to get coffee
Starbucks
6
The law of demand states
as price increases, supply decreases
as price increases, supply increases
as price increases, demand decreases
as price increases, demand increases
7
The supply of cars increases after the company invests in new robotics. Why did supply increase?
Complements
Technology
Taste/preference
Substitutes
8
Which of these would most likely cause a decrease in consumer spending?
Increasing government spending
Increasing income taxes
Having a huge sale
Decreasing the interest rate
9
Hanna is a cosmetologist. Hanna provides a:
natural resource
service
good
resource
10
The perfect intersection of supply and demand is
economics
shortage
equilibrium
market economy
11
Dividing tasks between employees
increases productivity
gives every employee something to do
makes everyone happier
forces people to work
12
A drought causes a shortage in oranges. What happens to the price of oranges?
Doesn't change
Stays the same
Increases
Decreases
13
Land, labor, capital, & entrepreneurship are all
Factors of microeconomics
Factors of competition
Factors of economics
Factors of production
14
In a traditional economy, decisions are typically based on
producers and consumers
custom and tradition
consumers
the government
15
Which of these is an example of a "good?"
Getting a haircut
Bojangles
Getting professional photos taken
Traveling by plane
16
Which of these is not a factor of production
Income
Land
Capital
Labor
17
The basic economic problem that people must solve is
satisfying unlimited wants with limited resources
updating jobs to use new technology
satisfying limited wants with unlimited resources
making sure all resources are used
18
the law of supply states
as price increases, demand increases
as price increases, demand decreases
as price increases, supply increases
as price increases, supply decreases
19
In a free market economy the price and quantity of goods & services are most strongly affected by
competition
regulation
advertising
borrowing
20
When you purchase a new pair of shoes, you are a:
consumer
Economist
producer
Trader

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