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Economics Review, 1st Trimester Flashcards | StudBud
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Economics Review, 1st Trimester
Economics Review, 1st Trimester
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Answers
1
Pilar is a subsidized school, why?
to stop parents from sending you to a private school
to make it more affordable to people with different income
to pay for the pool
2
? for a good consists of all ? willing/able to supply it and all ? willing/able to demand it
a market, the producers, the consumers
a market, the consumers, the producers
X, Y, Z
the producers, the consumers, a market
3
In planned economic systems, the government...
owns and controls the majority of resources
usually permits private companies
consumers have lots of choices
market failures do not exist
4
What is the mechanism used by society to best allocate scarce resources?
factors of production
democracy
the supply/demand curves
the economic system
5
The diagram represents market equilibrium
a fall in supply
market equilibrium
a rise in supply
6
Market equilibrium occurs when
all of the above
there are no pressures to change the price
the quantity consumed is equal to the quantity sold
market demand meets market supply
7
In a market economy, products are produced ....
to correct market failures
for consumers and for/by the government for people in need
for the government's use
for consumers with the greatest ability to pay for them
8
Imagine you own a ski resort, which of the following should you be most worried about?
global warming
a ski resort near yours has closed down
snowboarding is more popular than skiing
they are building a new hotel near your resort
9
Ownership and allocation of scarce resources is split between the private and public sectors.
market economic system
mixed economic system
supply/demand economic system
planned economic system
10
Goods and services are
?
if they are similar and they can satisfy the same consumer demand.
subsidies
unnecessary
complementary
substitutes
11
Which of the following is
NOT
an example of complementary goods/services?
Coke and Pepsi
bread and butter
ink cartridge and printer
toothpaste and toothbrush
12
What is the want or disposition of consumers to buy a product?
demand
supply
greed
the market
13
What does this image represent?
no change in demand
a fall in demand
a rise in demand
14
the manner in which the
prices
of goods/services affect the supply and demand of goods/services
subsidization
substitute and complement factor
the price mechansim
market failure
15
Which of the following is a possible cause for a fall in demand of a product?
an increase in population
tastes or fashion favor other products
a rise in disposable income after taxes
a fall in the price of complements
16
In market disequilibrium, excess supply causes _____ and excess demand causes _____
prices to fall, prices to rise
prices to fall, prices to fall
no change in price, no change in demand
prices to rise, prices to rise
17
Due to scarcity, every society must decide: what to produce, how to produce and ?
when to produce
for whom to produce
how much to produce
where to produce
18
What do mixed economics systems use to correct market failures?
the price mechanism
laws
substitutes and complements
nothing
19
What type of economic system do we have in Spain?
a corrupt one
market
planned
mixed
20
This chart represents an increase in market price if
market supply rises
market demand falls
21
Why would a private firm not take into account the external cost of its activities?
they only care about their own private costs and benefits
both answer are correct
there is not a law preventing it
22
? involves deciding how best to use scarce resources to satisfy as many needs/wants as possible
Consumption
Resource allocation
The economic system
Government planning
23
Which of the following is NOT a possible cause of a fall in supply from the car company Ford?
they pay less for labour, materials, machinery than before
consumers prefer other brands (Mercedes, Audi, Toyota, etc.)
the government takes away their subsidies
a hurricane has disrupted their shipping/receiving routes
24
As prices rise...
the quantity demanded by consumers decreases
the demand curve doesn't change
a demand curve slopes upwards
the quantity demanded by consumers increases
25
Totally free market economies...
have no taxes and no government spending
have no taxes BUT some government spending
have free education and government services
have minimal taxes and minimal government spending
