Economics Semester 1 Review

Question 1

Which of the following is NOT considered one of the basic questions all economies must answer?

Accepted Answer

Where to produce

Question 2

Monopolies would tend to lead to ____ prices

Accepted Answer

Higher

Question 3

At $10, there is...

Accepted Answer

Surplus

Question 4

In what market structure, do buyers choose totally based on price?

Accepted Answer

Perfect competition

Question 5

What is the main motivator of businesses?

Accepted Answer

Increasing profit

Question 6

Which best shows that I trust money as a store of value?

Accepted Answer

I leave money in my wallet to spend later.

Question 7

What is a variable cost for McDonald's?

Accepted Answer

Cost of a hamburger bun

Question 8

Apple buying Globe, a cell phone service provider, would be known as...

Accepted Answer

A vertical combination

Question 9

Define economics

Accepted Answer

Study of how people make choices due to scarcity

Question 10

Which of the following effects account for the law of demand?

Accepted Answer

All of the above

Question 11

Which of the following is NOT one of the 4 factors of production?

Accepted Answer

Technology

Question 12

How would a subsidy to farmers affect wheat supply?

Accepted Answer

Increases

Question 13

Being responsive to the prices of competitors is known as...

Accepted Answer

Interdependent pricing

Question 14

Oligopolies have __ sellers.

Accepted Answer

Few

Question 15

What is the word that means the "usefulness of a product"?

Accepted Answer

Utility

Question 16

As input is added,supply increases to a point, then return diminishes and becomes negative.

Accepted Answer

Law of Diminishing Returns

Question 17

The amount of money people have to spend is called...

Accepted Answer

Purchasing Power

Question 18

A table showing the amount supplied at various pries is called...

Accepted Answer

A supply schedule

Question 19

Before money, how did people exchange goods and services?

Accepted Answer

The barter system

Question 20

What is an example of a public good?

Accepted Answer

Police

Question 21

As competition increases, supply in the market tends to...

Accepted Answer

Increase

Question 22

Which point on this production possibilities curve marks a point of inefficiency?

Accepted Answer

X

Question 23

What is the law of diminishing marginal utility?

Accepted Answer

Buying more leads to less satisfaction from each new unit

Question 24

Economies of scale encourages ____ monopolies.

Accepted Answer

Natural

Question 25

What determines the value of a product?

Accepted Answer

A combination of its usefulness and availability

Question 26

An inelastic supply curve would be more ____ on a graph.

Accepted Answer

Vertical

Question 27

Ketchup is a ___ good to a hot dog.

Accepted Answer

Substitute

Question 28

What causes the demand for a good to be elastic?

Accepted Answer

The product's cost represents a large portion of income

Question 29

Which good most likely has the most inelastic demand?

Accepted Answer

Water

Question 30

You invested in a business, have no voice, but are guaranteed your investment plus interest.

Accepted Answer

Corporate bond

Question 31

Which type of business has a board of directors?

Accepted Answer

Corporation

Question 32

A minimum level of prices is known as...

Accepted Answer

Price floor

Question 33

The "responsibility for debt" is known as..

Accepted Answer

Liability

Question 34

Technology increases supply by...

Accepted Answer

Making production more efficient

Question 35

The philosophy that government should leave business alone is?

Accepted Answer

Laissez faire

Question 36

A problem for corporations tends to be...

Accepted Answer

Slow decision making process

Question 37

A limitation of the price system is known as..

Accepted Answer

Market failure

Question 38

A downside to rationing is...

Accepted Answer

All of the above

Question 39

Income of consumers in an area increases. The demand curve...

Accepted Answer

Shifts right

Question 40

Which type of business doesn't have to share profit?

Accepted Answer

Sole proprietors

Question 41

Total costs=

Accepted Answer

Variable costs+fixed costs

Question 42

The law of demand states that as price goes up

Accepted Answer

Quantity demanded decreases

Question 43

Which of the following increases efficiency?

Accepted Answer

All of the above

Question 44

What would be the best definition of scarcity?

Accepted Answer

There's not enough for everyone to have as much as they want

Question 45

The use of the smallest amount of resources to make a large amount of product is known as...

Accepted Answer

Efficiency

Question 46

Setting your products apart by other factors than price is known as...

Accepted Answer

Product differentiation

Question 47

At equilibrium,

Accepted Answer

Supply=Demand

Economics Semester 1 Review

Questions 47

Economics Semester 1 Review

Questions 47