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Economics Basics Unit Test Review Flashcards | StudBud
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Economics Basics Unit Test Review
Economics Basics Unit Test Review
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1
How would supply shift caused by lower costs of produciton affect price and quality?
Lower price, higher quality
higher price, lower quality
Lower price, lower quality
Higher price, higher quanitity
2
Which of the following laws is considered a trade barrier?
A company that produces furniture is shut down
Consumers deciding to purchase only local made goods
Paying money to an industry to encourage it to make goods in the country
Federal aid given to unemployed workers from a factory
3
Why would a store that as good prices and bulk quantities and a store with lower prices on single items both do well?
Customers patronize both stores to maintain competition
Customers value different types of deals
Customers have different brand loyalties
Customers do not have the information to choose the best option
4
Which of the following goods or services is an import in the US?
Technical service to a customer in the Phillippines
Software created in California and used in Chicago
Kitchenware purchased online from China
Apples grown on a farm in Vermont
5
How does the use of plastic to produce bicycle helmets affect other plastic using industries?
It decreases the amount of resources available to other industries
It increases demand for products of other industries
It increases the capital available to other industries
It decreases the prices offered by other industries
6
Which of these is an example of monetary incentive?
Having fun walking a dog
Making friends on a sports team
Earning an allowance for doing chores
Learning a new skill by studying it
7
When are equilibrium prices achieved?
When demand is greater than supply
When supply is greater than demand
When sellers break even
When supply equals demand
8
A co makes a printer that does not require ink. As a result the price of printers that use ink drops. Another result?
The price of ink cartridges goes up
The supply of ink cartridges drops
The demand for ink cartridges goes up
The price of ink cartridges drops
9
Which policy would be in the best interests of consumers?
Breaking up large companies to increase competition
Decreasing minimum wage
Increasing tariffs
Changing loan interest rates to encourage saving rather than borrowing
10
Labor unions are most closely tied to which type of productive resource?
Capital Resources
Entrepreneurship
Natural Resources
Human Resources
11
What does a relative price compare?
The price that a seller wants to pay to the price that the seller pays
The price that buyers pay to the price that sellers ask
The price of one good or service to another
The price different sellers ask for the same good
12
How does scarcity affect customers?
Limited money forces consumers to make choices
Limited time prevents consumers from making decisions
Limited numbers of producers force customers to be loyal
Limited wants and needs limit customers to small purchases
13
According to the law of demand, what role do low prices serve for buyers?
Supply
Substitute
Reward
Penatly
14
A country has an economic boom and can afford to increase imports from a 2nd country. What will happen in the 2 country
Depression
Recession
Increased taxes
Economic boom
15
Which of the following is a characteristic of a market economy?
Weak property rights
Limited role of government
No consumer choice
Lack of competition
16
US signs a free trade agreement with another country that has different resrouces. How will trade treaty affect US?
Producers will be put out of business as more interesting products enter
Consumers will face higher prices as trade deficits increase
Industries will increasingly focus on using interdependence
Businesses will most likely not offer a variety of products
17
Which statement best explains wy division of labor increases labor productivity?
Employers must fire some of their workers so fewer people have work
Workers try to work more quickly because their jobs are more boring
Workers learn to do their jobs more quickly when they repeat the same tasks
Employers can pay workers more money when they get more done
18
Which of these is an example of price competition?
A special holiday sale
A new advertising campaign
A customer satisfaction survey
A loyalty rewards program
19
Which situation is more likely to occur in a market econ than a command econ?
An inventor designs and produces a new type of car
People line up for cheap but scarce products
A student is guaranteed a job out of college
A committee cooses which farms should receive new tractors
20
Which of these is an example of a capital resource?
Entrepreneurs
Iron Ore
Workers
Computers
21
Many employees of a local restaurant quit and seek other opportunities. Most likely explanation?
Decrease in positive incentives to work
Decrease of negative incentives to being unemployed
A developing price war
A protest action by the union
22
What is one potential negative consequence associated with free trade?
Buyers and seller can no longer make price decisions
Countries that practice free trade have high unemployment
People in certain industries earn lower wages or sell fewer products
Import and export taxes are high under free trade
23
How do banks most help grow the economy?
They are baced by the federal government
They are difficult to steal from
They offer both checking and savings accounts
They provide loans for consumers and investors
