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Introduction to Economics (Week 1 to 5) Flashcards | StudBud
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Introduction to Economics (Week 1 to 5)
Introduction to Economics (Week 1 to 5)
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Answers
1
What is a characteristic of monopolistic competition?
Barriers to entry
Product differentiation
Few sellers
Identical product
2
Does price floor create surplus?
False
True
3
What happens to price if demand exceeds supply?
Price stays the same
Price goes up
Price goes down
Price is undefined
4
Is a competitive market structure good for consumers?
True
False
5
What is the main focus of microeconomics?
Individual agents and markets
Government interventions
The economy as a whole
International trade
6
What is the formula for Income Elasticity of Demand?
% Change in Quantity Demanded/% Change in Income
% Change in Income/% Change in Quantity Demanded
% Change in Quantity Supplied/% Change in Income
% Change in Income/% Change in Quantity Supplied
7
What's the definition of labor in economics?
Human effort
Natural resources
Anything with financial value
Manufacturing tools
8
Are price ceilings always effective?
False
True
9
Is a change in production costs a factor affecting supply?
True
False
10
Microeconomics focuses on government intervention.
False
True
11
If prices increase and demand falls, pricing is said to be...
elastic
inelastic
12
What is a characteristic of perfect competition?
Product differentiation
Price taker
Few sellers
Barriers to entry
13
What is the basic economic problem?
Scarcity
Opportunity cost
Inflation
Deflation
14
What is opportunity cost?
The cost of marketing
The value of what is given up
The value of what is gained
The cost of production
15
What happens if price is above equilibrium?
Surplus
Shortage
Stability
None of the above
16
When demand increases, the demand curve shifts
Right
Left
17
Entrepreneurship is one of the factors of production.
True
False
18
Is equilibrium always present?
True
False
19
Define Supply in economics.
The willingness and ability of a producer to produce and sell a product.
The desire to have a good or service and the ability to pay for it.
20
A product with low income elasticity is a necessity
True
False
21
What is the impact of monopoly on consumers?
Choice
Higher prices
Ease of access
Lower prices
22
What is a need in economics?
Optional
Desire
Luxury
Basic
23
What does PED measure?
Income changes
Price changes
Sensitivity of demand
Quantity Q changes
