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Basic Concepts of Economics Flashcards | StudBud
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Basic Concepts of Economics
Basic Concepts of Economics
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Questions test your knowledge of the economics concepts discussed in class.
Flashcards
25 cards
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Practice quiz
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Questions
25
Answers
1
Which of these is a service business?
tool manufacturing plant
gas station
beauty salon
grocery store
2
Who makes goods for sale?
Producers
Consumers
all of these
service providers
3
Who purchases goods?
Service provider
Consumer
Producer
Factory
4
When would consumers comparison shop?
When prices are low and the inventory is high
When prices are high and the inventory is high
When prices are low and the inventory is low
When prices are high and the inventory is low
5
When supply of a product is low and demand is high, what most likely happens?
Price for product decreases.
Price for product increases.
Demand for the product decreases.
There is no correlation between price and supply.
6
The amount of goods on hand is
inventory
demand
distribution
consumer
7
In which economic system do producers compete with each other for more successful markets?
Fascism
Capitalism
Socialism
Communism
8
Which of these is a producer good rather than a good consumers would want?
wooden furniture
lumber
a book
a microwave oven
9
Producers want the lowest prices possible
FALSE
TRUE
10
This defines the effect of availability of a product or service to consumers' desire for it.
None of these
Capitalism
Economics
Supply and Demand
11
If inventory is higher than the demand for the product, this is created.
surplus
scarcity
supply
shortage
12
Which of these is not a raw material?
cheese
lumber
lumber
cotton
13
The free market is
based entirely on supply and demand
All of these answers are correct.
the market found in a capitalistic economy
the ideal form of market economy
14
Kids wanted hatching toys for the 2016 Holiday Season. What effect did this have on consumers?
All of these answers are true.
Stores could not provide enough of these toys to meet demand
These toys were very difficult to find and buy.
Parents were willing to pay higher prices to get them.
15
If inventory is lower than the demand for the product, this is created.
abundance
surplus
shortage
supply
16
What might a wise consumer do if the price of the desired product goes too high?
Pay whatever it costs
None of these
Stock up while the price is high
Find a substitute product
17
There are a large number of houses for sale in our area. It is a buyer's market. Why?
Low supply/high demand - buyers offer less than list price.
High supply/low demand -buyers offer less than list price.
High supply/low demand - sellers raise prices.
There is no correlation between supply and demand.
18
What is the role of labor in any economy?
They purchase the raw materials used in manufacturing.
They convert capital and raw materials into goods.
They purchase all goods and services provided.
They provide capital to start new businesses.
19
Capital is anything that can produce income. Which of these would not be considered capital?
hospitality
buildings
land
stocks and bonds
20
Why might the government give price support to farmers and not to toy manufacturers?
Toys sales vary widely and cannot be determined
Toys are sold for use by children.
Toys are distributed through wholesale and retail channels.
Toys are not critical to a nation's economic well being.
21
Consumers want the highest profit possible.
FALSE
TRUE
22
If you go to a grocery store to buy your vegetables, you are supporting a
wholesale market
retail market
neither of these
23
What might a wise consumer do if the price of the desired product goes very low?
None of these
Find a substitute product
Stock up while the price is low
Offer to pay a higher price
24
If you go to a farmer's market to buy your vegetables, you are supporting a
wholesale market
Neither of these
a retail market
25
Do you comparison shop for gas for your car? (NO POINTS... just opinion)
YES
NO
