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Economics Chapter 16 Test Review Flashcards | StudBud
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Economics Chapter 16 Test Review
Economics Chapter 16 Test Review
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Answers
1
Who is the "Father of Economics"?
Alan Greenspan
Alan Smith
Adam Smith
Adam Driver
2
Quantity supplied
goes up when price goes
down
up
3
What can a producer do to increase their profit?
Increase income (prices)
Either will work!
Decrease their expenses
4
This is an example of a supply curve.
True
False
5
Income - Expenses = ?
Scarcity
Resources
Profit
Price
6
Economic choices often have long-term, unexpected outcomes.
True
False
7
A monopoly is when one company has total control over the supply of a good or service. It's bad for consumers.
False
True
8
Competition, profit motive, and supply + demand are _____
Market Forces
Resources
Economic Systems
Factors of Production
9
Improvements in technology shift the supply curve to the...
left (decrease supply)
right (increase supply)
10
When we draw a supply & demand graph, the
equilibrium
is...
the vertical axis
the point where the curves intersect
the surplus zone
the horizontal axis
11
If the price of a
COMPLIMENT
good decreases, what will happen to demand for
your
product?
decrease
increase
12
We have
limited
resources for our unlimited needs & wants. In economics, this concept is called
The Market
factors of production
scarcity
13
_____ is what it costs a supplier to produce one more unit.
Quantity Supplied
Marginal Cost
14
For the
invisible hand
to work in a market economy, you must have
competition
.
False
True
15
Market Forces (Competition, Profit Motive, Supply & Demand) impact the price and availability (quantity) of goods.
True
False
16
In a market economy,
competition
encourages...
Businesses to lower prices
Product improvements & innovation
Both
17
This is NO pure market economy in the world right now.
True
False
18
Quantity demanded
decreases when price goes
up
down
19
You're a producer, and you have a LOT of competition. What can you do to increase sales?
Innovate (create something new or improved)
Lower prices
Either should work!
20
Scandals and bad reviews shift the demand curve to the
right (increases demand)
left (decreases demand)
21
If the price of a
SUBSTITUTE
good increases, what will the demand for
your
product do?
Decrease
Increase
22
Which of these is a
FACTOR OF PRODUCTION
?
Demand
Entrepreneurship
Mixed Economy
Market Force
23
Bartering and trading are common in a _____
Market economy
Command economy
Traditional economy
Mixed economy
24
Why do we get less use/enjoyment out of each cookie we eat?
Law of Diminishing Marginal Benefit
Law of Supply
25
The United States has a pure market economy.
False
True
26
Which of these is an example of why the USA has a mixed economic system?
all of the above
Social Security payments
public schools
laws regulating businesses
27
In a
supply & demand
line graph, one axis is
price
and the other axis is
quantity
.
True
False
28
Supply and demand are closely connected to price.
False
True
29
Opportunity cost
is the value of
the choice I didn't take (what I gave up)
the choice I made
30
A central authority (government) controls the economy. An example is North Korea.
Market Econony
Mixed Economy
Command Economy
Traditional Economy
31
I earn $20 an hour. Instead of working 2 hours today, I spend $50 going out with friends. What's my opportunity cost?
$40
$50
$90
32
The major difference between a command economy and a market economy is
the amount of government involvement.
True
False
33
In a market economy, when PRICES GO DOWN...
Quantity demanded goes up
Quantity demanded goes down
Quantity demanded AND quantity supplied go up
34
Economics is the study of money.
False
True
