What happens at the “equilibrium price”?

the number supplied equals the number demanded

Paradox of value refers to the

high value of a nonessential item and the low value of an essential item.

Opportunity cost refers to

the value of the next best alternative.

Which of these is a major advantage of a market economy?

There is a high degree of individual freedom.

What are the characteristics of demand?

the desire, ability, and willingness to buy a product

Most successful investors invest ______.

consistent contributions over a long period of time

A nation's wealth is determined by its

accumulation of all tangible products.

Equilibrium is reached when what occurs?

quantity supplied equals quantity demanded

Every student who wants financial aid must

complete the FAFSA application form

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Economics Semester Review

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Questions 27

Answers

1
Economic growth is most closely associated with an increase in
opportunity cost.
economic interdependence.
goods and services.
capital and labor.
2
The study of economics involves
All of the above.
explaining how incomes are earned and how jobs are created.
studying how things are made, bought, sold, and used.
explaining how people deal with scarcity.
3
A woman borrows money from a bank to purchase a house. She is obtaining a
cease and desist order.
trust.
mortgage.
foreclosure.
4
What happens at the “equilibrium price”?
the prices are all the same
the number supplied equals the number demanded
the price stops changing
the quantity of sellers is the same as the quantity of buyers
5
You should complete a FAFSA form if you want
automobile or property insurance
financial aid for college
to live in an apartment
to donate money to a charity
6
Paradox of value refers to the
contradiction of what consumers want and what they need.
high value of a nonessential item and the low value of an essential item.
contradiction between gross domestic product and market value.
high value of an essential item and the low value of a nonessential item.
7
Opportunity cost refers to
the dollar amount attached to a good or service.
the cost of not expanding production.
the cost of labor when production is expanded or changed.
the value of the next best alternative.
8
Which of these is a major advantage of a market economy?
There is a high degree of individual freedom.
People are likely to be offered goods and services they cannot afford.
It can change direction rapidly as needed when markets change.
There is efficient government control of production and distribution.
9
You pick up a $1 bill. What are you holding?
All of the above
Federal Reserve note
currency
fiat
10
A nation's wealth is made up of
all tangible and intangible items.
all intangible items.
all goods and services.
all tangible items
11
A can of soup is an example of a
capital good.
service.
nondurable good.
durable good.
12
A car is an example of a
nondurable good.
durable good.
capital good.
service.
13
What are the characteristics of demand?
the desire, ability, and willingness to buy a product
the ability and willingness to buy a product
the desire and ability to buy a product
the willingness and desire to buy a product
14
Which of the following is the single largest federal expenditure?
Social Security
national defense
Medicare
interest
15
Consumers waiting in long lines for a new product is an example of
consumer responsibilities.
consumer rights.
scarcity.
consumerism.
16
A general rise in the level of prices over time is known as
inflation.
voluntary exchange.
profit.
a catalyst.
17
Which type of economy is most prevalent in the world today?
mixed
traditional
command
market
18
Most successful investors invest ______.
consistent contributions for a few months
consistent contributions over a long period of time
small amounts of money once in a while
large amounts of money once in a while
19
A nation's wealth is determined by its
product possibilities frontier.
accumulation of all tangible products.
accumulation of all tangible and intangible resources.
natural resources.
20
Which product most likely has a demand that is inelastic?
green beans
a meal at a restaurant
a vital medicine
a vacation
21
The four factors of production are land, labor, capital, and
the government.
entrepreneurs.
inflation.
franchises.
22
Two obstacles to a nation’s economic development are:
population growth and disease.
high literacy and external debt.
war and foreign investment.
corruption and zero population growth policies.
23
Equilibrium is reached when what occurs?
quantity supplied equals quantity demanded
prices are inelastic
there is no change in the quantity supplied
price increases
24
Every student who wants financial aid must
take AP classes
join the military
complete an application for a Social Security card
complete the FAFSA application form
25
Many employees regularly contribute to a 401(k) plan to build a personal pension fund.
False
True
26
Economic growth is an increase in a nation's output of goods and services over time.
True
False
27
Which is a good synonym for the word barter in the term barter economy?
investment
monetary
capital
trade

Economics Semester Review Flashcards | StudBud