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North Star Economics C4-5 Review Flashcards | StudBud
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North Star Economics C4-5 Review
North Star Economics C4-5 Review
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1
What happens when producers offer fewer products for sale at all prices?
supply curve has not moved
supply curve has shifted to the left
supply curve has shifted to the right
2
What is a listing that shows the quantities demanded at all prices?
supply schedule
demand curve
demand schedule
3
Cost-benefit decision making that compares benefits to costs of an action is called
marginal revenue
marginal costs
marginal analysis
4
When a customer's need for a product is not urgent, demand tends to be
elastic
unit elastic
inelastic
5
What is a graph showing the various quantities supplied at all possible prices in the market?
market supply
supply schedule
supply curve
6
What can cause the market supply curve to shift?
change in number of sellers
change in the price of the product
change in number of consumers
7
What is economic theory that deals with behavior and decision making by individuals and firms?
microeconomics
economics
macroeconomics
8
When the number of workers hired is so great that the workers begin to get in each other's way
output increases.
output remains steady.
output decreases.
9
How does a change in price of a good affect its complement?
increase demand if prices are lowered
no change in demand at all
decreased demand if prices are lowererd
10
What is a gov't payment to encourage or protect economic activity?
regulation
subsidy
taxes
11
The theory of production deals with the relationship between factors of production and
the output of goods and services.
the cost of marginal returns.
the cost of raw materials.
12
What would happen if a business decides to double the price of a product?
dramatic increase in revenues
dramatic decline in revenues
increase in revenues
13
What describes change in demand when a change in price is the proportional to change in demand?
elastic
inelastic
unit elastic
14
The use of tech to produce goods will
increase supply.
not affect supply.
decrease supply.
15
If a modest price increase has little or no effect, the demand is
inelastic
elastic
unit elastic
16
What does the Law of Supply state?
supply varies inversely with price
supply varies directly with price
supply varies indirectly with price
17
What is the cost that changes when the rate of operation or output changes?
variable costs
overhead
fixed costs
18
What is the measure of consumer responsiveness in a market?
fixed costs
elasticity
variable costs
19
What is amount of a product that producers bring to market at a given price?
demand
quantity supplied
supply
20
Why do many businesses engage in e-commerce?
operating costs never increase
variable costs can be elminated
fixed costs are minimal
21
For most products, an increase in price results
decreased demand for the product
reduced demand for substitutes
increased demand for complements
22
What are stages of production based on?
the way output changes independent of input
way marginal product changes as variable inputs are added
the way total output changes over time
23
Supply of product will normally decrease if
gov't subsidies are removed.
price of the product increases.
cost of inputs goes down.
24
What is an example of substitutes?
cameras and film
butter and margarine
computers and software
25
What is a change that is graphically represented as movement along the demand curve?
income effect
change in quantity demanded
substitution effect
26
What is change in quantity demanded due to change in the relative price of a product?
substitution effect
income effect
compliment effect
27
What does the Law of Demand state?
less will be purchased at low prices
the same will be purchased no matter the price
more will be purchased at low prices
28
What is the amount a product that would be offered for sale at all possible prices?
demand
supply
substitutes
29
An increase in price of cameras results in the decrease in demand for film. These two are
substitutes.
complements.
demand elastic.
30
What describes where a change in price causes a larger change in demand?
elastic
unit elastic
inelastic
31
Which will cause an increase in supply?
a decrease in productivity
changing consumer tastes
decrease in cost of inputs
32
What is extra usefulness gained from using one more unit of a product?
marginal utility
demand
supply
33
If a consumer cannot postpone the purchase, demand tends to be
inelastic
unit elastic
elastic
34
What equals the number of units sold multiplied by the average price per unit?
total revenue
marginal revenue
profit
35
Rent payments would be counted as
total cost.
fixed costs.
variable costs.
36
What does a demand schedule show?
the changes in demand along the graph
listing of QD of a product at all P
an upward-sloping curve showing demand
37
What are products used in place of other products?
substitutes
subsidies
compliments
38
How does the demand curve show an increase in demand?
movement along the curve
curve shifts to the left
curve shifts to the right
39
What is desire, ability and willingness to buy a product?
marginal utility
supply
demand
40
Advertising, fashion trends, and a new product serve to
minimize the income effect.
create consumer demand.
increase consumer efficiency.
41
What is a period of production long enough for adjustments in all productive resources?
medium run
short run
long run
42
With the substitution effect, if two items satisfy the same need and the price of one rises,
people will buy the lower-priced item
people will buy something else
people will buy higher-priced item.
43
When production level where total cost equals total revenue.
break-even point
profit growth
losses
44
What is electronic business or exchange conducted over the Internet?
brick and mortar store
e-commerce
vendor
45
An increase in the price of milk causes a decrease in demand for cereal. The products are
elastic
complements
subsitutes
46
In what order do the three stages of production occur?
increasing returns, diminishing returns, negative returns
negative returns, diminishing returns, increasing returns
diminishing returns, increasing returns, negative returns
47
Consumer's willingness to buy more of an item when its price goes down is due to
the income effect.
complements.
the substitution effect.
48
When the rate of increase in total production is starting to slow down the firm is operating
in Stage I of production
in Stage II of production
in Stage III of production
49
What is the cost a business incurs even there is little or no activity?
fixed cost
total cost
variable cost
50
Buying only one drink instead of two drinks at lunch describes what concept?
marginal utility
diminishing marginal utility
demand
51
Profit is maximized when marginal cost is
equal to marginal revenue.
less than marginal revenue.
greater than marginal revenue.
52
What is the difference between the individual demand curve and market demand curve?
only market demand shows for everyone in the market
the individual demand curve is downward sloping
only individual demand curve will show prices
53
Which product is likely to have the most elastic supply curve?
cars
ships
ice cream cones
54
Which illustrates elastic demand?
ice cream in the summer
gasoline
medical services
55
Total cost is the sum of
all variable costs.
fixed and marginal costs.
fixed costs and overhead.
56
If a manufacturer increase the price of medicine by 30% and the demand decreases by 30%.
elastic
unit elastic
inelastic
57
If a gallon of soda decreases P by 10% and revenues increase by 30%.
unit elastic
inelastic
elastic
58
The relationship between P and QS is
an inverse one.
a direct one.
an indirect one.
59
The demand curve is always
irregular
upward sloping
downward sloping
60
Which would cause a change in the quantity demanded for a product?
decreasing the price of product
changing consumer tastes
increasing consumer income
