what is marginal cost

the additional cost of an additional unit

Define comparative advantage

Having the lowest opportunity cost

Which of the following takes place during the end of the trough and beginning of expansion?

Inventories decrease and businesses begin to spend money.

Supply is best defined as the measure of how much producers are willing and able to sell

at different prices in a given period of time

In a free enterprise system how do producers decide where to spend their resources?

Based on signals from market prices or the price system

Monopolistic competition refers to market structure that has

firms selling similar products that vary slightly

What makes the supply of a product more elastic?

The supplier's ability to bring it to market quickly

The study choices to satisfy with limited resources

How do you know when to stop producing more units of a product or service

When marginal cost is greater then marginal benefit

the MAIN reason why consumers don't notice the effects of trade quotas or barriers is because

the costs are spread over a large number of people

What type of people are hurt the most by inflation?

people who are on a fixed income

total value of goods and services

When the price of a complement product increases sharply

the demand for the other product will shift to the left

An economist would most likely agree that specialization

reduces self-sufficiency but increases productivity

Which of the following best defines the value of money?

The goods and services that money can buy

To an economist, an economy that is operating at its full potential has

low unemployment and high production

a shortage of a product occurs when

the product's price falls below its market-clearing level

-Responses to incentives are predictable because

people generally pursue their own interests

free trade among nations generally results in

an increased selection of goods at lower prices

Demand is best defined as the measure of how much consumers are able and willing to buy

at different possible prices in a given period of time

Which transactions would be included in the calculation of a country's gross domestic product?

A bakery earns $750 one month from cake sales.

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Econ final review 2019

39 termsStudBud Administration137 plays

Flashcards39 cardsFPractice quizPHost liveL

Questions 39

Answers

1
what is marginal cost
the additional cost of an additional unit
the value of what was traded
fixed cost + variable cost
total cost after a transaction
2
The point reached when the next item consumed is less satisfying than the one before is called
elasticity
diminishing marginal utility
saturation
a point on the demand curve
3
Define comparative advantage
Having the lowest opportunity cost
Having the highest input cost
Producing an output with the lowest input cost
Having the lowest government regulation in an industry
4
The consumer price index (CPI) is used to measure
productivity
inflation
gross domestic product
structural unemployment.
5
With a 10% reserve requirement how much can a $1000 deposit turn multiply into?
$10,000
$900
$100
$1000
6
Which of the following takes place during the end of the trough and beginning of expansion?
Inventories decrease and businesses begin to spend money.
Businesses avoid new debt and seek to pay off existing debt.
Businesses begin to lay off workers and reduce outputs.
Inventories increase or remain constant for several months.
7
Fill in missing term: Production, _________________, Consumption
Exchange
Distribution
Contribution
Efficiency
8
A change in monetary policy is likely to have the MOST IMMEDIATE effect on
aggregate demand
unemployment
interest rates
government spending
9
Tariffs or quotas on imports are most likely to cause
inefficient production
increases in consumer spending
greater productivity among employed workers
lower transportation costs
10
-In a transaction who determines price?
The seller
The buyer
Both buyer and seller together
The Producer
11
Supply is best defined as the measure of how much producers are willing and able to sell
according to their resources and profit motives
above the market-clearing price
at different prices in a given period of time
at any one price in a given period of time
12
Which of the following characteristics are most likely found in developing countries?
high population growth rates.
large number of people living in poverty.
very traditional methods of agricultural production.
alll answer are correct
13
In a free enterprise system how do producers decide where to spend their resources?
They produce whatever they have an absolute advantage with
Based on signals from market prices or the price system
Government authorities dictate what to sell
Whichever product has the easiest market entry
14
Which is an advantage to forming a corporation
prohibits outside investment
Is cheaper to organize and opporate
limits financial liability
Easy to make changes or adapt
15
Monopolistic competition refers to market structure that has
one firm dominating sales in the market for a product
one firm agreeing to purchase all other firms in an industry
firms selling similar products that vary slightly
many firms competing to sell identical products or services
16
a cost paid by someone who is neither the producer or consumer of a product
Economic injustice
Externality
Imperfect information
Liability
17
What makes the supply of a product more elastic?
If it has many substitutes
If purchases can be delayed
Giving more training to employees
The supplier's ability to bring it to market quickly
18
Define economics
The study of money
What people do to earn a living
The study choices to satisfy with limited resources
The study of natural resources and their uses
19
The demand curve shows an inverse, or negative, relationship between
price and quantity demanded
short-run and long-run prices
elastic or inelastic prices
price and quantity supplied
20
The value of the best alternative that is given up with a decision to choose something else
Opportunity Cost
Comparative Advantage
Marginal cost
Scarcity
21
How do you know when to stop producing more units of a product or service
When a inventories are steady
When marginal cost is greater then marginal benefit
When it is no longer fun
When the price falls
22
the MAIN reason why consumers don't notice the effects of trade quotas or barriers is because
they have enough spending power to cover the costs
the costs are spread over a large number of people
they usually buy domestic goods most of the time
the effects are rarely reported by the news media
23
Which of the following businesses is most likely to operate in PURE COMPETITION?
a shoe company
an automobile manufacture
an office supply store
a wheat farm
24
What type of people are hurt the most by inflation?
people who are on a fixed income
people who work for the government
people who carry a lot of credit card debt
people who are heavily invested in the stock market
25
fiscal policy
Marginal analysis
Federal reserve influencing interest rates
Government taxing and spending
cost verses revenue
26
GDP
permits for new construction
total value of goods and services
cost of a generic basket of goods
unemployed subtracted from the labor force
27
When the price of a complement product increases sharply
the demand for the other product will shift to the right
the demand for the other product will shift to the left
the quantity demanded for that product will increase
the quantity demanded for the other product will not change
28
An economist would most likely agree that specialization
reduces both efficiency and self-sufficiency
reduces self-sufficiency but increases productivity
increases both productivity and self-sufficiency
increases profitability but reduces productivity
29
Which of the following best defines the value of money?
The government that prints a value on the paper or currency
The goods and services that money can buy
The Precious metals that back it
A nation's central bank
30
What makes demand in-elastic
more consumers then suppliers
high market value
fixed prices
no or few substitutes
31
To an economist, an economy that is operating at its full potential has
a low inflation rate and tight money supply
low unemployment and high production
a nominal GDP equal to its real GDP
high employment and low wages
32
a shortage of a product occurs when
the product's price falls below its market-clearing level
the people who buy the product consume more than they need
the businesses producing the product become less efficient
the product's market-clearing level reduces overall demand
33
The nation's money supply, credit, interest rates, and banking, are regulated primarily through
environmental policy
monetary policy
fiscal policy
foreign policy
34
-Responses to incentives are predictable because
businesses generally operate to serve the public interest
producers and consumers have the same needs
people generally pursue their own interests
most governments use the same system of rewards
35
which market structures would a consumer find the most businesses selling identical products?
monopolistic competition
pure competition
oligopoly
monopoly
36
Which is not a scare resource
Land
Gravity
Air
Time
37
free trade among nations generally results in
a higher number of unemployed workers worldwide
an increased selection of goods at lower prices
increase in profits for businesses that fail to controlcosts
a shift toward less efficient methods of production
38
Demand is best defined as the measure of how much consumers are able and willing to buy
above the equilibrium price at a given time
at different possible prices in a given period of time
at one price in a given period of time
according to their income and budget over time
39
Which transactions would be included in the calculation of a country's gross domestic product?
A factory worker sells his used car to for $900.
All answers are correct
A furniture factory spends $800 to buy raw materials.
A bakery earns $750 one month from cake sales.

Econ final review 2019 Flashcards | StudBud

Econ final review 2019

39 termsStudBud Administration137 plays

Econ final review 2019

Flashcards39 cardsFPractice quizPHost liveL

Questions 39

Answers

1
what is marginal cost
the additional cost of an additional unit
the value of what was traded
fixed cost + variable cost
total cost after a transaction
2
The point reached when the next item consumed is less satisfying than the one before is called
elasticity
diminishing marginal utility
saturation
a point on the demand curve
3
Define comparative advantage
Having the lowest opportunity cost
Having the highest input cost
Producing an output with the lowest input cost
Having the lowest government regulation in an industry
4
The consumer price index (CPI) is used to measure
productivity
inflation
gross domestic product
structural unemployment.
5
With a 10% reserve requirement how much can a $1000 deposit turn multiply into?
$10,000
$900
$100
$1000
6
Which of the following takes place during the end of the trough and beginning of expansion?
Inventories decrease and businesses begin to spend money.
Businesses avoid new debt and seek to pay off existing debt.
Businesses begin to lay off workers and reduce outputs.
Inventories increase or remain constant for several months.
7
Fill in missing term: Production, _________________, Consumption
Exchange
Distribution
Contribution
Efficiency
8
A change in monetary policy is likely to have the MOST IMMEDIATE effect on
aggregate demand
unemployment
interest rates
government spending
9
Tariffs or quotas on imports are most likely to cause
inefficient production
increases in consumer spending
greater productivity among employed workers
lower transportation costs
10
-In a transaction who determines price?
The seller
The buyer
Both buyer and seller together
The Producer
11
Supply is best defined as the measure of how much producers are willing and able to sell
according to their resources and profit motives
above the market-clearing price
at different prices in a given period of time
at any one price in a given period of time
12
Which of the following characteristics are most likely found in developing countries?
high population growth rates.
large number of people living in poverty.
very traditional methods of agricultural production.
alll answer are correct
13
In a free enterprise system how do producers decide where to spend their resources?
They produce whatever they have an absolute advantage with
Based on signals from market prices or the price system
Government authorities dictate what to sell
Whichever product has the easiest market entry
14
Which is an advantage to forming a corporation
prohibits outside investment
Is cheaper to organize and opporate
limits financial liability
Easy to make changes or adapt
15
Monopolistic competition refers to market structure that has
one firm dominating sales in the market for a product
one firm agreeing to purchase all other firms in an industry
firms selling similar products that vary slightly
many firms competing to sell identical products or services
16
a cost paid by someone who is neither the producer or consumer of a product
Economic injustice
Externality
Imperfect information
Liability
17
What makes the supply of a product more elastic?
If it has many substitutes
If purchases can be delayed
Giving more training to employees
The supplier's ability to bring it to market quickly
18
Define economics
The study of money
What people do to earn a living
The study choices to satisfy with limited resources
The study of natural resources and their uses
19
The demand curve shows an inverse, or negative, relationship between
price and quantity demanded
short-run and long-run prices
elastic or inelastic prices
price and quantity supplied
20
The value of the best alternative that is given up with a decision to choose something else
Opportunity Cost
Comparative Advantage
Marginal cost
Scarcity
21
How do you know when to stop producing more units of a product or service
When a inventories are steady
When marginal cost is greater then marginal benefit
When it is no longer fun
When the price falls
22
the MAIN reason why consumers don't notice the effects of trade quotas or barriers is because
they have enough spending power to cover the costs
the costs are spread over a large number of people
they usually buy domestic goods most of the time
the effects are rarely reported by the news media
23
Which of the following businesses is most likely to operate in PURE COMPETITION?
a shoe company
an automobile manufacture
an office supply store
a wheat farm
24
What type of people are hurt the most by inflation?
people who are on a fixed income
people who work for the government
people who carry a lot of credit card debt
people who are heavily invested in the stock market
25
fiscal policy
Marginal analysis
Federal reserve influencing interest rates
Government taxing and spending
cost verses revenue
26
GDP
permits for new construction
total value of goods and services
cost of a generic basket of goods
unemployed subtracted from the labor force
27
When the price of a complement product increases sharply
the demand for the other product will shift to the right
the demand for the other product will shift to the left
the quantity demanded for that product will increase
the quantity demanded for the other product will not change
28
An economist would most likely agree that specialization
reduces both efficiency and self-sufficiency
reduces self-sufficiency but increases productivity
increases both productivity and self-sufficiency
increases profitability but reduces productivity
29
Which of the following best defines the value of money?
The government that prints a value on the paper or currency
The goods and services that money can buy
The Precious metals that back it
A nation's central bank
30
What makes demand in-elastic
more consumers then suppliers
high market value
fixed prices
no or few substitutes
31
To an economist, an economy that is operating at its full potential has
a low inflation rate and tight money supply
low unemployment and high production
a nominal GDP equal to its real GDP
high employment and low wages
32
a shortage of a product occurs when
the product's price falls below its market-clearing level
the people who buy the product consume more than they need
the businesses producing the product become less efficient
the product's market-clearing level reduces overall demand
33
The nation's money supply, credit, interest rates, and banking, are regulated primarily through
environmental policy
monetary policy
fiscal policy
foreign policy
34
-Responses to incentives are predictable because
businesses generally operate to serve the public interest
producers and consumers have the same needs
people generally pursue their own interests
most governments use the same system of rewards
35
which market structures would a consumer find the most businesses selling identical products?
monopolistic competition
pure competition
oligopoly
monopoly
36
Which is not a scare resource
Land
Gravity
Air
Time
37
free trade among nations generally results in
a higher number of unemployed workers worldwide
an increased selection of goods at lower prices
increase in profits for businesses that fail to controlcosts
a shift toward less efficient methods of production
38
Demand is best defined as the measure of how much consumers are able and willing to buy
above the equilibrium price at a given time
at different possible prices in a given period of time
at one price in a given period of time
according to their income and budget over time
39
Which transactions would be included in the calculation of a country's gross domestic product?
A factory worker sells his used car to for $900.
All answers are correct
A furniture factory spends $800 to buy raw materials.
A bakery earns $750 one month from cake sales.