In economics, “equilibrium price” is a situation in which

there is neither shortage nor surplus of goods

In the product market

Producers sell goods and services to consumers

What is "money as a medium of exchange"?

Money can be traded for goods and services

The BEST explanation of why there will always be scarcity is because

peoples’ wants are unlimited resources are limited

The purpose of a production possibilities graph is to show

combination uses of limited resources

Ms Lee chooses to open a store instead of renting his building. What is her opportunity cost?

opportunity to rent to another tenant

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Duplicate of ECON EOC 1

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Questions 14

Answers

1
The study of scarcity and choices is
specialization
economics
allocation
deregulation
2
Studying for 1 more hour results in 1 hour less of sleep. This decision would be engaging in
trade negotiations
bartering
marginal analysis
market transactions
3
In the graph, what happened to the EQ price when the supply curve moved from S1 to S2?
EQ price increased
It indicated a decrease in demand
EQ price decreased
It did not change
4
In economics, “equilibrium price” is a situation in which
a partial temporary reduction in prices occurs
the Quantity demanded is greater than quantity supplied
there is neither shortage nor surplus of goods
the quantity supplied is greater than the quantity demanded
5
Land, labor, capital, and entrepreneurship are the
Results of production
Results of supply and demand
Factors of production
Basis of employment
6
Preliminary research to gain knowledge about opening a business would increase
allocation of resources
labor
physical capital
human capital
7
In the product market
Individuals provide labor and buy goods
Individuals buy productive resources and provide labor
Productive resources are bought and sold
Producers sell goods and services to consumers
8
What is "money as a medium of exchange"?
money is a measure of societal status
Money can be traded for goods and services
Money is a measure of a product’s value
Money can be accumulated as a form of wealth
9
Where do individuals spend the income they earn?
product market
capital market
factor market
individual household market
10
Incentives for an entrepreneur to start a business would MOST LIKELY be
to risk financial failure
to discover a new patent
to make a profit
to create a new social benefit
11
Mr. Allen, a bakery owner, purchased a new oven. The oven represents which productive resource?
entrepreneurship
labor
land
capital
12
The BEST explanation of why there will always be scarcity is because
peoples’ wants are unlimited resources are limited
People and their tools are inefficient
Natural disasters create frequent shortages
Governments create scarcity to keep people wanting more
13
The purpose of a production possibilities graph is to show
combination uses of limited resources
Whether the supply of goods is elastic ornot.
The number of workers required for aspecific task
How supply and demand determine price
14
Ms Lee chooses to open a store instead of renting his building. What is her opportunity cost?
Profit from his own store
opportunity to run his own business
opportunity to rent to another tenant
the property tax he would pay

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