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ECON EOC 1 Flashcards | StudBud
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ECON EOC 1
ECON EOC 1
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1
Law of demand: as the price of a good rises, demand __, and as the price falls, demand __.
falls, falls
falls, rises
rises, rises
rises, falls
2
Land, labor, capital, andentrepreneurship are the
Results of supply and demand
Basis of employment
Factors of production
Results of production
3
The BEST explanation of why there will
always be scarcity is because
Governments create scarcity to keep people wanting more
People and their tools are inefficient
Whilepeoples’ wants are unlimited resources are limited
Natural disasters create frequentshortages
4
What is "money as a medium of exchange"?
Money can be traded for goods andservices
Money can be accumulated as a form ofwealth
Money is a measure of a product’s value
money is a measure of societal status
5
In the graph, what happened to the EQ price when the supply curve moved from S1 to S2?
It indicated a decrease in demand
EQ price increased
EQ price decreased
It did not change
6
Incentives for an entrepreneur to start a business would MOST LIKELY be
to risk financial failure
to make a profit
to discover a new patent
to create a new social benefit
7
The study of scarcity and choices is
specialization
allocation
deregulation
economics
8
Choices: taco, hamburger, or salad. You do not like tacos. You choose the salad. OC is?
salad
nothing, it was free.
hamburger
taco
9
In the factor market
Productive resources are bought and sold
Producers sell goods and services toconsumers
Individuals buy productive resources and provide labor
Individuals provide labor and buy goods
10
Mr. Lee chooses to open a store instead of renting his building. What is his opportunity cost?
the property tax he would pay
opportunity to rent to another tenant
Profit from his own store
opportunity to run his own business
11
Preliminary research to gain knowledge about opening a business would increase
human capital
labor
allocation of resources
physical capital
12
Where do individuals spend the income they earn?
capital market
individual household market
factor market
product market
13
Mr. Green, a bakery owner, purchased a new oven. The oven represents which productive resource?
land
entrepreneurship
capital
labor
14
In economics, “equilibrium price” is a situation in which
there is neither shortage nor surplus of goods
the quantity supplied is greater than the quantity demanded
the Quantity demanded is greater than quantity supplied
a partial temporary reduction in prices occurs
15
What is the opportunity cost of saving money to purchase a car?
The cost of working hard to save money
The cost of insurance, gas, andmaintenance
The money could be used to go on vacation
The money you could have earned at a job
16
If marginally, the cost begins to outweigh the benefits
You stop!
Do less!
You can't have too much of a goods thing!
Who cares?
17
What MIGHT cause the line (frontier) on this possibilities graph to move to the left?
Increased demand for basketballs
A shortage of needed raw materials
newwhoopee cushions technology
An increase in the number of workers
18
Choosing among economic alternatives is
Scarcity
Labor allocation
Trade-off
Interdependence
19
The purpose of a production possibilitiesgraph is to show
The number of workers required for aspecific task
combination uses of limited resources
How supply and demand determine price
Whether the supply of goods is elastic ornot.
20
Studying for 1 more hour results in 1 hour less of sleep. This decision would be engaging in
market transactions
marginal analysis
trade negotiations
bartering
