Economics, Ch. 4 and Ch. 5

Question 1

Which of the following is *NOT* a determinant of demand elasticity listed in the textbook?

Accepted Answer

How well potential customers respond to advertising

Question 2

What does the graph depict?

Accepted Answer

Change in Quantity Supplied

Question 3

Every business needs to find the production level where revenue covers operating costs, called

Accepted Answer

The break-even point

Question 4

Microeconomics is...

Accepted Answer

...economic theory about decision making by individual units

Question 5

The Law of Demand states

Accepted Answer

demand varies inversely with the price of a product

Question 6

What are the two types of costs a business incurs?

Accepted Answer

Fixed and variable

Question 7

According to the text, one way of determining the elasticity of a product is

Accepted Answer

Calculating total expenditures

Question 8

What does this graph depict?

Accepted Answer

Equilibrium

Question 9

When economists analyze production, they focus on

Accepted Answer

The short run

Question 10

A government payment to encourage or protect a certain type of economic activity is called

Accepted Answer

A subsidy

Question 11

When a change in demand for one item causes a change in demand for another item, we call them

Accepted Answer

Complementary

Question 12

What does the graph depict?

Accepted Answer

Shortage

Question 13

The extra usefulness a person gets from acquiring one more unit of a product it its

Accepted Answer

Marginal Utility

Question 14

The amount of a product offered for sale at all possible prices in the market is the

Accepted Answer

Supply

Question 15

What does this graph depict?

Accepted Answer

Change in Supply

Question 16

Which of these is *NOT* one of the three "stages of production?"

Accepted Answer

Neutral returns

Question 17

What does this graph depict?

Accepted Answer

Change in Quantity Demanded

Question 18

The demand for a product can be shown as a demand curve, and in what other format?

Accepted Answer

Demand schedule

Question 19

As we use more of a product, the extra satisfaction for each new unit declines. This is

Accepted Answer

Diminishing marginal utility

Question 20

Which of these is *NOT* listed in the textbook as a factor that can lead to a change in demand?

Accepted Answer

More efficient production

Question 21

If the desire, ability and willingness to buy a product or service is present, we say there is

Accepted Answer

Demand

Question 22

What does the textbook say is the main advantage of e-commerce, compared to traditional stores?

Accepted Answer

Lower fixed costs (called "overhead")

Question 23

If a change in price causes a relatively larger change in demand, the product has

Accepted Answer

Elasticity

Question 24

The change in total product caused by adding one more unit of variable input is called

Accepted Answer

Marginal product

Question 25

People act in their own interest to decide WHAT, HOW, & FOR WHOM to produce in a ___ economy

Accepted Answer

Market

Question 26

The Law of Supply states

Accepted Answer

Suppliers offer more at higher prices and less at lower

Question 27

Which of these can cause a change in supply?

Accepted Answer

All of these

Economics, Ch. 4 and Ch. 5

Questions 27

Economics, Ch. 4 and Ch. 5

Questions 27