How are economic transactions shaped in a traditional economy?

Elders and ancestors make certain that things are done in specific ways.

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 the most important reason for a firm to do periodic marginal analyses?

to establish its profit-maximizing quantity of output

Which of these is the best description of a normal supply curve?

Its slope goes up when the diagram is read from left to right.

Labor in a factory is an example of which of these?

a variable factor of production

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Econ Exam Quiz! #2

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Questions 25

Answers

1
Factors that can cause a change in supply include
increases in the number of sellers and market expectations.
increased or decreased government subsidies.
all of the above.
technology and government regulations.
2
Which of these tends to force the price of an item downward?
attainment of an equilibrium price for that item
attainment of an equilibrium quantity of that item
a surplus of that item
a shortage of that item
3
How are economic transactions shaped in a traditional economy?
Elders and ancestors make certain that things are done in specific ways.
Each community decides as a group for whom the group will produce.
Individuals form networks in which they buy, sell and trade as they choose
The 3 basic questions of production do not arise in this type of economy
4
Paradox of value refers to the
high value of an essential item and the low value of a nonessential item.
contradiction of what consumers want and what they need.
contradiction between gross domestic product and market value.
high value of a nonessential item and the low value of an essential item.
5
Opportunity cost refers to
the cost of not expanding production.
the cost of labor when production is expanded or changed.
the value of the next best alternative.
the dollar amount attached to a good or service.
6
The struggle among sellers to attract consumers by offering the best products at the lowest prices is known as
voluntary exchange
competition
profit motive
property rights
7
Which of these industries has the least elastic supply curve?
the automobile industry
the toy industry
the nuclear industry
the entertainment industry
8
Which of these is the most important reason for a firm to do periodic marginal analyses?
to establish its overhead
to establish its total revenue
to establish its break-even point
to establish its profit-maximizing quantity of output
9
Which two terms are the most similar in meaning?
marginal costs and fixed costs
marginal costs and variable costs
variable costs and overhead
fixed costs and overhead
10
Which would an economist consider a likely complement for coffee?
donuts
water
tea
chicken
11
The most comprehensive measure of a nation's wealth is provided by its
capital goods.
product possibilities curve.
gross domestic product.
TINSTAAFL rating.
12
Which term is generally associated with labor and raw materials?
total cost
marginal cost
fixed cost
variable cost
13
On a demand curve, movement along the curve, as opposed to a shift in the entire curve, is a result of ___
a decrease in demand.
a change in demand.
a change in price
an increase in demand.
14
A can of soup is an example of a
a service
a nondurable good
a durable good
a capital good
15
Which of these can be added to determine total costs?
marginal costs and overhead
fixed costs and marginal costs
fixed costs and variable costs
fixed costs and overhead
16
What do most economists believe is the most efficient way to allocate resources?
competitive markets
distorted incentives
rationing
government action
17
What is the main cause of a change in quantity demanded?
changes in price
changes in revenue
substitution
the income effect
18
A hungry man is willing to pay a high price for food. Later, he is not willing to pay the same high price. What happened
diminishing marginal utility
a complement
the substitution effect
unit elasticity
19
Which of these is the best description of a normal supply curve?
Its slope is mostly horizontal, with occasional vertical fluctuations.
Its slope goes up when the diagram is read from right to left.
Its slope is completely horizontal.
Its slope goes up when the diagram is read from left to right.
20
In what kind of economy does the government own some of the factors of production?
traditional
socialist
communist
market
21
Which term denotes the change in total income when one additional unit of output is added?
supply schedule
marginal revenue
total product
change in supply
22
Dave gets a job at a grocery store, which pays him an hourly wage in exchange for his labor. Dave is participating in
the product market
entreprenuership
the factor market
human capital
23
Labor in a factory is an example of which of these?
a fixed factor of production
a variable factor of production
a diminishing return
a marginal product
24
When the price of something increases, the quantity demanded ____
increases
reverses
decreases
remains unchanged
25
Which term best describes rent control?
nonrecourse
price ceiling
subsidy
equilibrium price

Econ Exam Quiz! #2 Flashcards | StudBud