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Economic Environment Flashcards | StudBud
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Economic Environment
Economic Environment
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15 questions on economics and supply and demand
Flashcards
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Questions
15
Answers
1
The law of demand indicates that as the price of a good increases...
more of it is produced
government will start to regulate it
buyers purchase less of it
suppliers wish to sell it less
2
The point of a business cycle fluctuation during which growth ceases and the economy has hit a bottom is called a(n):
cotraction
expansion
trough
peak
3
If the supply ________, and the demand remains the same, there will be a surplus, and the price will go down.
increases
decreases
4
what is he common supply curve on a graph?
up from right to left
up from left to right
down from left to right
down from right to left
5
what kind of economy is this?
european economy
market economy
competitive economy
command economy
6
When the price in some market is below its equilibrium price:
a shortage exists
the quantity supplied is more than the quantity demanded
a surplus exists
7
In a command economy, economic effort is devoted to goals passed down from a ruler or ruling class.
True
False
8
If the demand decreases, and the supply remains the same, there will be a shortage. This will mean the price will go up.
True
False
9
which is an example of a non-scarce resource?
water
time
gas
air
10
Falling economic indicators typically signal ________ in the economy.
depression
recession
expansion
inflation
11
which country has a command economy?
austrailia
china
thailand
united states
12
which of the following can shift the demand curve?
supply increases or decreases
government subsidies
price of the good changes
population grows in a certain area
13
Even in generally free market economies, governments will...
Step in when the market gets things wrong
all of the above
Create public goods and services such as roads and education
Maintain the rule of law
14
Most economies in the real world are mixed; they combine elements of command and market systems.
True
False
15
Market economies are based on private enterprise, which means
economic decision making happens though market
the number of government services is limited
private companies control the government
there is no private property
