The Law of Diminishing Marginal Utility states that

the more we have, the less additional happiness we get.

products that are seen as identical to customers.

a relationship between price and quantity produced.

If a good is economic, it means

you have to give something up to get it.

If something is abundant, it means

there is enough to satisfy everyone's needs.

According to the graph below, if producers wanted to increase profits they should

lower prices by increasing supply.

the price at which Q(demand)=Q(supply).

Which of the following is NOT one of the basic assumptions of economics?

The more you buy, the less happiness you have.

We hear about things being overpriced. If something really is overpriced, we would know because

There would be a surplus of it.

The law of supply is best represented by

a graph rising from left to right (increasing function).

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Introduction to Economics Quiz

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Questions 17

Answers

1
Economics is the study of
Money
Choices
Business
Abundance
2
The Law of Diminishing Marginal Utility states that
the more we have, the less additional happiness we get.
the more we have of something, the more we want.
we should give up all worldly possessions to be truly happy.
the more we have of something, the less happy we are.
3
When governments set minimum prices by law, the usual outcome is
an abundance of the product.
a shortage of the product.
a surplus of the product.
scarcity of the product.
4
Substitutes are
products that are almost as good as the original.
teachers who come in when Mr. Watson is sick.
products that are seen as identical to customers.
products that are produced together.
5
Supply is
a relationship between price and quantity produced.
how much of a product companies make.
a relationship between price and quantity purchased.
how much of a product people want to buy.
6
If a good is economic, it means
it is free.
it is REALLY good.
you have to give something up to get it.
it is abundant.
7
If something is abundant, it means
there is enough to satisfy everyone's needs.
there is enough for most people to have it.
there is too much of it.
there is a lot of it.
8
A shortage of a product in the market is best corrected by
a drop in prices.
a rise in prices.
government intervention.
increased competition
9
In economics, we refer to happiness as
marginal
a myth, best forgotten.
equilibrium
utility
10
Anything that directs people's choices in a particular direction is called
an incentive
manipulation
coercion
an opportunity cost
11
A rise in demand for bacon leads to an increase in supply of ham because
bacon and ham are both so darned tasty.
of misguided government policies.
bacon and ham are substitutes.
bacon and ham are complements.
12
According to the graph below, if producers wanted to increase profits they should
lower prices by decreasing supply.
raise prices by increasing supply.
raise prices by decreasing supply.
lower prices by increasing supply.
13
The graph below shows
highly elastic supply.
highly inelastic supply.
highly elastic demand.
highly inelastic demand.
14
Equilibrium means
equality.
the price at which Q(demand)=Q(supply).
the price and quantity.
balance.
15
Which of the following is NOT one of the basic assumptions of economics?
People desire happiness.
People are rational.
Money can buy you happiness.
The more you buy, the less happiness you have.
16
We hear about things being overpriced. If something really is overpriced, we would know because
There would be a surplus of it.
No one would buy it ever.
There would be a shortage of it.
There would be a scarcity of it.
17
The law of supply is best represented by
a graph falling from left to right (decreasing function).
a graph rising from left to right (increasing function).
lots and lots of money.
a Donald Trump presidency.

Introduction to Economics Quiz Flashcards | StudBud