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Econ 101 Flashcards | StudBud
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Econ 101
Econ 101
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Supply and Demand Review
Flashcards
23 cards
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Questions
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Answers
1
Who came up with the "invisible hand" theory?
John Smith
Ben Franklin
Adam Smith
John Keynes
2
According to the Law of Supply, what do suppliers do when prices decrease?
Produce the same amount
Produce more
Produce less
3
Which of these is an implicit cost?
Losing a good night's sleep
Price of a concert ticket
Shipping charge
Tuition fee
4
What is cost is "the next best choice" that you didn't make?
Implicit cost
Opportunity cost
Hidden cost
Explicit cost
5
What cost is the actual money, or price you pay when making a choice?
Implicit cost
Opportunity cost
Explicit cost
Trade off
6
According to the Law of Demand, what happens to demand when prices increases?
Demand rises
Nothing happens
Demand falls
7
What results from an increase in taxes?
An increase in demand
An increase in supply
A decrease in supply
A decrease in demand
8
What happens to prices during a shortage?
Prices rise
Prices fall
Prices stay the same
9
Which of the lines on this graph is the SUPPLY curve?
Red line
Blue line
10
What results from an increase in productivity?
An increase in supply
An increase in demand
A decrease in demand
A decrease in supply
11
Is the demand curve elastic or inelastic?
Perfectly Inelastic
Inelastic
Perfectly Elastic
Elastic
12
What results from an increase in the cost of resources needed to produce a good?
Increase in supply
Decrease in supply
Increase in demand
Decrease in demand
13
Is the demand curve inelastic or elastic?
Perfectly Inelastic
Perfectly Elastic
Inelastic
Elastic
14
What type of good is used to manufacture other goods?
Capital goods
Production goods
Consumer goods
Service goods
15
What gives goods their value?
Scarcity
Age
Usefulness
Desirability
16
What does this graph illustrate?
Increase in supply
Decrease in demand
Decrease in supply
Increase in demand
17
Which example illustrates consumer preferences?
Buying butter because it's cheaper than margarine
Liking Diet Coke better than Diet Pepsi
Shopping because you got a raise
Tractor Supply having higher sales in NC than NYC
18
According to the graph, what is the equilibrium price?
$2
$4
$3
$1
19
Bagels and cream cheese are examples of what type of goods?
Substitute goods
Complementary goods
20
Pepsi and Coke are examples of what type of good?
Complementary Goods
Substitute Goods
21
What results from a decrease in productivity?
A decrease in demand
An increase in supply
An increase in demand
A decrease in supply
22
What does the location marked "X" represent on the graph?
Surplus
Shortage
Equilibrium Price
23
The more of a product you consume, the less satisfaction you get. What is this called?
Diminishing Return
Law of Supply
Law of Demand
Diminishing Utility
