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Economics - Chapters 4 & 5 Review Flashcards | StudBud
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Economics - Chapters 4 & 5 Review
Economics - Chapters 4 & 5 Review
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Test Review for Chapters 4 & 5!
Flashcards
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Questions
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Answers
1
In what order do the three stages of production occur?
increasing returns, diminishing returns, negative returns
diminishing returns, increasing returns, negative returns
increasing returns, negative returns, diminishing returns
negative returns, diminishing returns, increasing returns
2
The change in output from adding one more worker is the
diminishing marginal returns
marginal product of labor
negative marginal returns
increasing marginal returns
3
A decrease in supply is depicted by a:
shift from S1 to S2
move from point x to point y
shift from S2 to S1
move from point y to point x
4
What does new technology generally do to production?
It increases cost and decreases supply
It has very little effect on production
It lowers cost and decreases supply
It lowers cost and increases supply
5
See the chart question below:
The demand for more studying increases!
decreases from 2 cans to 0 cans a day.
remains unchanged.
increases from 0 cans to 2 cans a day.
6
If you keep buying despite a price increase, your demand is
elastic
normal
inelastic
7
What is the Latin phrase that means "if everything else remaining the same."
caveat emptor.
ceteris paribus.
e pluribus unum.
carpe diem.
8
When the government causes the supply of a good to rise, what happens to the supply curve?
It shifts to the left
It shifts to the right
It reverses direction
The supply curve is not affected
9
When the price of something increases, the quantity demanded
increases
remains unchanged
decreases
reverses
10
See chart below for question:
the law of demand
the income effect
the law of elasticity
the law of discounts
11
Substitutes are
goods that are bought and used together.
goods that cannot be replaced.
goods used in place of one another.
12
President Trump has threatened to impose a ________ on certain goods made in Mexico.
regulation
marginal product
subsidy
excise tax
13
The desire, ability, and willingness to buy a product or service is called
want
supply
an incentive
demand
14
All of the following are examples of complements EXCEPT
peanut butter and jelly.
butter and margarine.
flashlights and batteries.
15
Prices for common vegetables tend to be elastic. Why?
because vegetables cannot be substituted
because other vegetables are available.
because vegetables are inexpensive
because the consumers must eat.
16
Demand that is very sensitive to a change in price is called
elastic
inelastic
17
Which product would most likely have a demand that is inelastic?
a vacation
a vital medicine
green beans
a meal at a restaurant
18
A cost that rises or falls depending on how much is produced is called?
total cost
a fixed cost
marginal cost
a variable cost
19
Under "Obamacare" the government has given a ________ to pay for some people's insurance.
tariff
tax credit
subsidy
excise tax
20
A decrease in quantity demanded is depicted by a:
move from point x to point y
Hmmm, maybe I should study my Demand Rules before the test!
shift from D1 to D2
move from point y to point x
21
The two variables on a demand curve are
demand and supply.
price and quantity.
quantity and supply.
22
Which of the following is an example of lower production costs due to technology?
importing fresh veggies from S. America rather than canned
use of e-mail to replace slower surface mail
bread made in local shops rather than large bakeries
deliver of gasoline to the consumer by diesel trucks
23
What factor has the greatest influence on elasticity or inelasticity of supply?
time
profit
financing
labor
24
What is the main cause of a change in quantity demanded?
the income effect
Change in revenue
substitution
price
25
For which product is demand likely to be the most elastic?
a product with no substitutes.
It is impossible to tell
a product with inadequate substitutes
a product with many adequate substitutes
