which of the following will happen if the price of butter goes up

the demand for margarine increases

which statement best describes a major role of government in a free enterprise system?

regulates businesses when the public interest is involved

the price of bread and the price of lobster each go up 20%. what will happen to the demand ?

demand for lobster will fall more than the demand for bread

which of the following is the best example of the law of supply

paper plate factory makes more plates when market price up

how does specialization affect production

it makes workers more efficient

why does the government promote progress in technology

to make the economy stronger and more efficient

what does technology generally do to production

it lowers cost and increases supply

how can expectations about the future change what consumers buy now

demand goes up now if price is expected to rise in future

if the price of a product goes down, what will producers do ?

some producers will produce less, others leave market

what does it mean when you have demand for a good or service

you are willing and able to buy the good at the given price

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Econ Exam Review

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Questions 20

Answers

1
why would the government give farmers subsidies
to keep food supplies up
to help people forget past shortages
to increase the cost of production
to help farmers pay back debts
2
which of the following will happen if the price of butter goes up
the demand for butter increases
the demand curve for margarine moves to the left
the demand curve for butter moves to the right
the demand for margarine increases
3
which statement best describes a major role of government in a free enterprise system?
controls all decisions about business activities
follows a strict laissez-faire
regulates businesses when the public interest is involved
forms companies and hires managers
4
if a firm raises the price of a product with elastic demand, what will happen ?
demand will decrease
demand will increase
demand stays the same
demand is unitary
5
how is profit determined
marginal revenue minus marginal cost
total revenue plus total cost
marginal revenue plus marginal cost
total revenue minus total cost
6
which programs provide health insurance for older people, poor people, and disabled people
Medicare and Medicaid
Welfare and SCRIP
Workers' compensation and unemployment insurance
TANF and social security
7
if prices rise but income stays the same, what is the effect on the quantity demand ?
fewer goods are bought
more goods are bought
demand stays the same
quantity demanded increase
8
the price of bread and the price of lobster each go up 20%. what will happen to the demand ?
demand for lobster will fall more than the demand for bread
demand for both goods will rise
demand for lobster will increase more than for bread
demand for both goods will go to zero
9
what is one way technology helps the United States improve its standard of living?
increases productivity
reduces unemployment
increases unemployment
prevents sudden price changes
10
which of the following is the best example of the law of supply
a flour mill builds a new factory overseas
A café buys a new dishwasher to make work easier
paper plate factory makes more plates when market price up
a farmer grows wheat to sell to a flour mill
11
how does specialization affect production
it decrease revenue
it slows production
it makes workers more efficient
it increase cost
12
when did the nation's welfare system begin?
during the Great Depression
during WW1
during the War on Poverty
during the Civil War
13
John gets a raise and decides to buy fancy pasta instead of instant noodles. Instant noodle are
complements
market demand
inferior goods
unitary elastic
14
which of these would be an example of a fixed cost
rent
static
inferior
elastic
15
why does the government promote progress in technology
to increase unemployment by making workers necessary
to reduce the economy's dependence on government
to make the economy stronger and more efficient
to slow an economy down for a long period of time
16
what does technology generally do to production
it lowers cost and decreases supply
it lowers cost and increases supply
it has very little effect on production
it increases cost and decreases supply
17
how can expectations about the future change what consumers buy now
demand for a good will drop if the price stays the same
demand for a good will rise if the good is plentiful
demand for a good is not related to future expectations
demand goes up now if price is expected to rise in future
18
if the price of a product goes down, what will producers do ?
new firms will enter the market
existing producers will expand operations
existing firms will continue their usual output
some producers will produce less, others leave market
19
which of the following products has inelastic demand ?
medicine
candy bars
a particular soft drink
steak
20
what does it mean when you have demand for a good or service
you are willing and able to buy the good at the given price
you are able to afford the good but not at the given price
you want the good but may not be able to afford it
you can afford the good but may not be willing to buy it

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