Economics Unit 1,2 Review

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

A rightward shift of supply will:

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

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

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

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

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

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

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

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

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

The study of choice under conditions of scarcity is

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

Scarcity requires people to

What point on the PPC represents underproduction or unemployment?

What could have caused this shift in the supply curve?

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

Which of the following respresents the LEAST amount of competition?

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

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

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

What point respresents a recession in the business cycle?

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

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

All points on the PPC are possible, EXCEPT:

The law of supply states that as price increases,

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

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

Which point represents expansion in the buiness cycle?

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

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

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

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

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

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.

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

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

all of the following are factors of production EXCEPT:

the law of demand states that as prices increases,

The opportunity cost of something is:

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

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

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

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

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

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

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

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

What is the equilibrium price?