Which of these is not one of the three fundamental economic questions?

When are goods and services produced?

How would you describe a move on the PPF from point C to point A?

Increasing opportunity cost of cars

What does a circular flow model of a market economy show?

How Households and firms trade money, resources, and product

How would you describe moving from point X to point B?

Moving from Underutilization to efficiency

The economic concept of guns or butter means that

Government must balance military and civilian goods

What does a movement from point B to C show?

Increasing opportunity cost of refrigerators

How might this business reach point Y?

Attaining growth through innovation

Which of the following would make equilibrium price increase for gasoline?

People are paid more by their employers

A company that makes baseball caps is underutilizing its resources. What does this mean?

Company is producing fewer caps than it could be

How is a shortage different from scarcity?

A shortage can be temporary; scarcity always exists

Every decision involves tradeoffs because

Everyone's resources are limited

A giant meteor crushes a bunch of history nerds (RIP Mrs. Lloyd). The loser demand for Hamilton tickets

shifts left due to number of buyers

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Economics Unit 1 Review 2021

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Econ Unit 1

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Questions 21

Answers

1
If the price of staples increases....
demand for staplers decreases
demand has shifted left
quantity demanded for staples increases
supply has shifted right
2
Which of these is not one of the three fundamental economic questions?
What goods and services should be produced?
For whom are goods and services produced?
How are goods and services produced?
When are goods and services produced?
3
How would you describe a move on the PPF from point C to point A?
Increasing opportunity cost for refrigerators
Underutilization
Efficiency
Increasing opportunity cost of cars
4
Money can measure how much something is worth. It can function as a ___________.
Unit of account
None of the above
Store of value
Medium of exchange
5
If demand for gas shifts left, what happens to equilibrium price?
Price does not change, only quantity supplied
The price remains rises
The price is lowered
Price does not change, only quantity demanded
6
What does a circular flow model of a market economy show?
How households choose the goods and services they buy
How Households and firms trade money, resources, and product
How households and firms need the same resources
How firms control employee wages and salaries
7
How would you describe moving from point X to point B?
Moving from Unattainable to Underutilization
Moving from Underutilization to efficiency
Moving from efficiency to more efficiency
Moving from efficiency to Underutilization
8
The economic concept of guns or butter means that
A company must decide what to manufacture; guns or butter
A person can spend money on either sports equipment or food
Government can buy unlimited military and civilian goods
Government must balance military and civilian goods
9
What is included in this graph?
Decrease in Supply
Increase in Demand
Shortage
Decrease in equilibrium price
10
If Taylor is selling shoes for $190 a pair other people will start selling shoes like his because of
The law of Gravity
The law of Demand
The law of Supply
The law of Equilibrium
11
instead of bartering, we use money as a _______________.
store of value
medium of exchange
None of the above
unit of account
12
If electric cars become more popular, which of the following will happen?
Price of Gas increases
Demand for Gas stays the same
Demand for Gas shifts left
Supply for Gas shifts right
13
If a famous person endorses a product, that product's demand will increase because of
Taste
Resource Cost
Related Goods
Amount of Buyers
14
What does a movement from point B to C show?
Increasing opportunity cost of cars
Increasing opportunity cost of refrigerators
Increasing Efficiency
Underutilization of refrigerators
15
How might this business reach point Y?
Encouraging underutilization
Attaining growth through innovation
Moving along curve to efficient underutilization
Attaining growth through shortage
16
Which of the following would make equilibrium price increase for gasoline?
Increased preference for electric high speed rail travel
People are paid more by their employers
More oil rigs built off coast of Alaska
New oil rig technology makes harvesting oil more efficient
17
A company that makes baseball caps is underutilizing its resources. What does this mean?
Company is producing fewer caps than it could be
Company is running more efficiently than its competitors
Company pays its employees less than it should be
Company is making caps when it could be making t-shirts
18
How is a shortage different from scarcity?
There is no real difference between a shortage and scarcity
Shortage lacks goods and services; scarcity involves 1 item
A shortage can be temporary; scarcity always exists
A shortage comes from rising prices; scarcity falling prices
19
Every decision involves tradeoffs because
Everyone has to make decisions
Everyone's resources are limited
Some people have more money than others
Some decisions are made for business, others for society
20
How much Bitcoin is worth goes up and down constantly, sometimes a lot. The dollar is a better _________ than Bitcoin.
Medium of Exchange
None of the above
Unit of Account
Store of Value
21
A giant meteor crushes a bunch of history nerds (RIP Mrs. Lloyd). The loser demand for Hamilton tickets
shifts left due to number of buyers
shifts right due to expectations
shifts left due to income
shifts right due to taste

Economics Unit 1 Review 2021 Flashcards | StudBud