An economic idea stating the more of something a person consumes the less satisfaction they get

Law of diminishing marginal utility

A shortage occurs when...

The item is priced below equilibrium

Goods and services are produced in a market economy because...

People want to make a profit for themselves

Which of the following would cause a shift in demand?

An advertising campaign by a producer

Which of the following would most likely cause the price of used cars increase?

A news story points out the economic advantages of used cars

What are the four factors of production?

Land, Labor, Capital and Entrepreneurship

Which of these would likely decrease the price of a good or service?

A decrease in the price of a substitute good

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Microeconomics Review

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Questions 22

Answers

1
When supply = demand, it is called...
Equilibrium
Shortage
Surplus
Profit
2
What is an example of something that would be sold in a factor market?
Cell Phones
Automobiles
Sneakers
Lumber
3
What is likely to happen if there is a surplus of goods or services in the market?
Supply curve will shift left
Price will decrease
Supply curve will shift right
Price will increase
4
An economic idea stating the more of something a person consumes the less satisfaction they get
Law of increasing marginal utility
Law of diminishing marginal utility
Law of substitution effect
Law of shifting demand
5
A shortage occurs when...
The item is priced below equilibrium
The supply curve shifts left
The supply curve shifts right
The item is priced above equilibrium
6
Which of the following would increase the price of a product?
Supply and demand curves shift left
Supply Curve Shifts Right
Supply curve shifts left
Demand curve shifts left
7
What happens to the demand curve when you raise the price of the good or service?
The demand curve shifts left
We cannot tell
Nothing
The demand curve shifts right
8
How do you determine company PROFITS?
Revenue - Costs
Demand * Price
Costs - Revenue
Demand / Price
9
In which economic system does a central authority decide what/when/how to produce?
Market
Command
Traditional
Agrarian
10
In a market economy, a winter coat would be sold in the...
Firm
Factor Market
Mall
Product Market
11
Goods and services are produced in a market economy because...
People need goods and services
People have unlimited wants and needs
People want to make a profit for themselves
Cultural traditions drive production decisions
12
The "ceteris parabus" principal means
All other things equal
All other things not the same
All variables considered
All possibilities are equal
13
Which of the following would cause a shift in demand?
A natural disaster increases input costs
New technological development
A new producer enters the market
An advertising campaign by a producer
14
Movement along the supply curve in a supply and demand graph occurs when...
Supply shifts right
There is a change in price
We cannot know
Supply shifts left
15
This image is an example of the
Wants and Needs Chart
Circular Flow Chart
Law of Supply
Law of Demand
16
What drives production decisions in a market economy?
Consumer demand
Price of labor
Firm production capabilities
Price of the factors of production
17
Which of the following is likely to cause the situation in the graph to occur?
A decrease in the number of businesses in the market
An increase in the number of businesses in the market
An increase in consumer in come
A decrease in consumer income
18
Which of the following would most likely cause the price of used cars increase?
A new car dealership has an "end of year clearance"
A brand new used-car dealership opens in Grayslake
A news report points out the dangers of buying used cars
A news story points out the economic advantages of used cars
19
Unlimited wants and needs in a world of limited resources is called...
Economics
Scarcity
Trade off
Opportunity Cost
20
Quantity supplied increases as price increases is the...
Equilibrium
Law of Demand
Law of Supply
Not a real thing
21
What are the four factors of production?
Land, People, Products, Demand
Needs, Wants, Goods and Services
Land, Labor, Capital and Entrepreneurship
Supply, Demand, Equilibrium, Price
22
Which of these would likely decrease the price of a good or service?
A decrease in the price of a substitute good
A shortage of available goods or services
An increase in the price of a substitute good
An increase in the number of consumers

Microeconomics Review Flashcards | StudBud