Economics Unit 1,2 Review

Scarcity requires people to

Which of the following respresents the LEAST amount of competition?

What is the result if the government places a price floor on Product X?

If the income in the United States drastically increased what would the new equilibrium price for widgets?

In economics, which of these is the BEST definition of scarcity?

An increase in the price of a good will result in:

A central authority makes most of the major economic decisions in which of the following economic systems?

If a store plans to sell bathing suits for 30% off in September, which demand shifter could justify this markdown?

Which of the following is an example of a positive externality?

Which is associated with both a command economy and a mixed economy?

If demand shifts to the right and there is no change in the supply, what is the change in equilbrium price and quantity?

the total dollar value of all final goods and services produced within the country's borders in a given year is:

What could have caused this shift in the supply curve?

a government payment to encourage or protect an economic activity is:

if the cost of producing the good rises, then supply will shift to the left

the government's investment in workers' knowledge, skills and education is known as:

If producers moved the price of widgets from P3 to P1, what would be the result?

What point on the PPC represents underproduction or unemployment?

The law of supply states that as price increases,

All of the following could of caused this shif in supply EXCEPT:

What is the opportunity cost of moving from point B to point D?

if at every price, the amount people are willing and able to buy has increased then:

The opportunity cost of something is:

An increase in price will cause which of the following to occur?

All points on the PPC are possible, EXCEPT:

What is the equilibrium price?

minimal amounts of food, water, and shelter necessary for survival are known as:

A rightward shift of supply will:

When demand shifts to the right, how will price and quantity be affected?

The study of how people try to satisfy their needs and wants through the use of limited resources best describes:

All choices a person or business make involves an opporunity cost.

Variety of goods, incentives, freedom of choice, and profit motive best describes which type of economy

the law of demand states that as prices increases,

While demand is based on consumer purchases, supply is most likely based on

When there is a great supply of something that is in short demand, we would expect:

The study of choice under conditions of scarcity is

all of the following are factors of production EXCEPT:

Which point represents expansion in the buiness cycle?

A curve showing the maximum quantity of one good that can be produded for each possible quantity of another good is:

What is the result if there is a price celing set $400?

All of the following would contribute to economic growth EXCEPT:

What type of economy is found in rural, under-developed countries; economic activities are centered around family.

For an industry to be perfectly competitive, many firms must be selling identical products.

What might be the reason for the shift in the supply curve from AS to AS1?

The tendanacy for conusmers to switch away from a good whose price has risen and toward other less expensive goods is:

What do households demand in the product market in circular-flow model?

If the price of Widgets is set at $1, what is the result?

What point respresents a recession in the business cycle?

When demand shifts to the left, what is the effect on price and quantity?

If price changes from P2 to P1, what is the result?