Unit 2 Economics Quiz

Question 1

Process in which the price system moves the market toward the equilibrium point often involves?

Accepted Answer

trial and error

Question 2

If substitutes are readily available for a product, it has?

Accepted Answer

elastic demand

Question 3

Pollution is an example of a?

Accepted Answer

negative externality

Question 4

The amount of money remaining after producers have paid all their costs is called?

Accepted Answer

profit

Question 5

Refers to the amount of money consumers have available to spend on products?

Accepted Answer

purchasing power

Question 6

The amount of money remaining after producers have paid all their costs is called?

Accepted Answer

profit

Question 7

If prices of resources rise, supply will?

Accepted Answer

decrease

Question 8

Market size can be affected by?

Accepted Answer

all of the above

Question 9

Which direction will the demand curve shift if consumers' incomes rise?

Accepted Answer

to the right

Question 10

Raw materials are an example of?

Accepted Answer

variable costs

Question 11

National defense, the judicial system, and law enforcement are examples of?

Accepted Answer

public goods

Question 12

Rent is an example of?

Accepted Answer

fixed costs

Question 13

Workers' wages are an example of?

Accepted Answer

variable costs

Question 14

The side effects that sometimes result from the production of goods are called?

Accepted Answer

externalities

Question 15

A demand curve only displays a "snapshot" of a market because?

Accepted Answer

it represents a specific time period

Questions 15