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Econ Quarter 3-M Review Flashcards | StudBud
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Econ Quarter 3-M Review
Econ Quarter 3-M Review
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2022-23 Economics Quarter 3-M Review
Flashcards
33 cards
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Practice quiz
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Questions
33
Answers
1
More competition in a market tends to:
Have little effect on supply
Decrease supply
Increase supply
2
People are forced to make decisions about how to use resources effectively because:
Resources are limited and wants are unlimited
Dividing resources is a requirement of satisfaction
Exchange depends on shared needs
3
According to The Law of Demand, as prices rise:
Demand does not change
Demand increases
Demand decreases
4
Which of the following are factors that cause demand to change? CHOOSE TWO ANSWERS
Change in income
Change in government
Change in consumer wants
5
Which of the following are examples of factors of production? CHOOSE TWO ANSWERS
Goods
Capital
Natural resources
6
During the summer, Southern California theme parks hire more workers. Therefore, cost of these additional workers is:
Overhead cost
Variable cost
Fixed cost
7
Imagine that you decide to purchase a pair of shoes for $50. What is the opportunity cost of your decision?
The purchase of the pair of shoes
The tax paid on the pair of shoes
Something else you wanted to spend the $50 on
8
Which of the following are examples of the government’s influence on the American economy? CHOOSE TWO ANSWERS
Providing for national defense
An increase of tuition at a private school
Addressing environmental concerns
9
The ability to own property encourages people to do which of the following? CHOOSE TWO ANSWERS
Make a profit
Use their resources efficiently
Support government ownership of the factors of production
10
Newspaper carriers may offer you a bonus for every 50 new subscribers you sign up. This is an example of a:
Negative Consequence
Incentive
Discouragement
11
The basic economic problem is:
Efficiency
Scarcity
Profits
12
As income goes up, demand for goods:
Goes down
Goes up
Stays the same
13
What does the cartoon above infer about the impact of supply and demand on the price of gasoline?
High demand and lack of supply have caused an increase in the price of gas
The lack of demand has caused a lack of supply
The reason why gas is expensive is because of an increase in the supply
14
Scarcity forces consumers to make decisions based on which of the following? CHOOSE TWO ANSWERS
Opportunity cost
Prices
Interdependence
15
Which of the following is a feature of the market system?
Government rules
Private property
Government control of the economy
16
Which of the following are examples of public goods? CHOOSE TWO ANSWERS
Parks
Cellphones
Library
17
According to Adam Smith, the incentive that drives the producer is:
Rules and laws
Profit
Government
18
Which of the following is an incentive for people to work?
Unsafe working conditions
Low pay
Medical insurance
19
According to Adam Smith, a market economy is driven by competition. He called this concept:
Traditions and beliefs
Socialism
The “invisible hand”
20
Which of the following is an example of a fixed cost?
Price of labor
Price of resources
Price of mortgage/rent
21
Why does the government regulate monopolies (non-competitive markets)?
Because trusts have little control of market
To protect consumers’ rights
To decrease commerce
22
All economies today are actually:
Command
Mixed
Market
23
A price ceiling could cause:
Equilibrium
A surplus
A shortage
24
According to The Law of Supply, as prices rise:
Supply does not change
Supply increases
Supply decreases
25
An oil refinery fire could cause price of gas to:
Decrease
Increase
Remain the same
26
What is true about the cost of production?
Costs of production never change
The more costs a business has, the more profit it makes
Has an effect on how much profit a business makes
27
Individuals have the most freedom to answer the three basic economic questions in which economic system?
Market
Traditional
Command
28
Pollution is an example of a:
Negative externality
Positive externality
Self-sufficiency
29
If the price of Pepsi increases significantly, Pepsi drinkers will choose to buy Coke instead. This is an example of:
Complementary goods
Substitution
Income
30
Government owns or controls all or nearly all of the factors of production in which of the following economic systems?
Traditional
Command
Market
31
Which of the following is true about the process by which buyers and sellers compete to determine a market price?
Equilibrium exists where buyers and sellers agree
Sellers always accept the buyers’ price
Buyers always accept the sellers’ price
32
What is the monthly expense called that you have to pay, like rent?
Fixed expense
Market expense
Variable expense
33
The minimum wage is an example of:
Price floor
Black market
Price ceiling
