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Fall 2020 Economics Exam Review Flashcards | StudBud
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Fall 2020 Economics Exam Review
Fall 2020 Economics Exam Review
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Semester Exam
Flashcards
42 cards
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Questions
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Answers
1
A change in the number of producers selling a product will cause
A decrease in demand
An increase in prices
Movement along the market supply curve
The market supply curve to shift
2
It is against the law to discriminate when hiring someone. Which goal(s) does this law satisfy?
Economic Security
Both
Economic Equity
Neither
3
Which best describes complements?
As the price of one goes up, demand for the other goes down
As the price of one goes up, demand for the other goes up
Movie tickets and streaming services
iPhone and Samsung
4
As consumers, we participate in the flow of economic activity by
Using cost-benefit analysis to decide what to produce
Offering our time, talent and treasure in the factor market
Offering our time, talent and treasure in the product market
Using opportunity costs to decide what to produce
5
What are the 4 factors of production?
land, labor, capital goods, entrepreneurs
land, labor, capital, entrepreneurs
productivity, profit, capital, entrepreneurs
labor, capital, entrepreneurs, capital goods
6
What represents the opportunity cost in refrigerators given up when we move from point A to C.
The horizontal distance from A to C
The horizontal distance from A to X
The vertical distance from A to X
The vertical distance from A to C
7
Economy where privately owned businesses are allowed to profit with minimal gov interference
Free enterprise
Democratic
Socialist
Mixed
8
The ability to quickly produce more of a product at the same cost
explains the Law of Supply
tends make the supply elastic
increases demand
increases the price
9
In the Pearl Game, prices for pearls increased when
Sellers competed
Sellers had a surplus
Diamonds dropped in price
Buyers competed
10
Economy where the gov’t owns factors of production, plans economy and makes economic decisions
Traditional
Mixed
Command
Market
11
A change in supply or demand
unrelated to price
causes WHAT to the supply/demand curve?
A shift to the left or right
Supply/demand to be more/less elastic
Movement along the curve
A vertical/horizontal shift
12
The downside of this economy is that it is slow to change
Traditional
Market
Mixed
Command
13
2 of the 7 causes for change in supply.
Subsidies and Substitutes
Productivity and Technology
Inflation and Government Regulations
Lower Prices and # of Suppliers
14
These 2 things help explain the Law of Demand.
Income effect and substitution effect
Change in demand and change in QD
Elastic and inelastic demand
Substitutes and consumer income
15
What is the law of supply?
There is an inverse relationship between supply and price
Businesses will supply only expensive items
When price increases, supply decreases
When price increases, so does supply
16
A decrease in extra usefulness or satisfaction with each additional unit
Marginal utility
Diminishing marginal utility
Marginal product
Marginal cost
17
What is the law of demand?
As price increases, supply decreases
As price decreases, so does demand
law of demand has nothing to do with price
As price decreases, demand increases
18
Most important factor for productivity is
Economic growth
Human motivation
Specialization
Division of labor
19
2 of the 7 economic/social goals of Americans.
Economic Efficiency and Profitability
Right to Work and Economic Growth
Economic Freedom and Full Employment
Economic Security and Economic Equality
20
A company producing at point Y on the curve represents
An opportunity cost of car sales
An opportunity cost of clothes sales
An opportunity cost of using nonexistent resources
An opportunity cost of idle resources
21
What was the economic problem in
The Lorax?
Greed
Environmentalists
Lack of property rights
Lack of government regulation
22
What might cause this decrease in the supply of chocolate?
Subsidies are offered
Chocolate growers invest in new technology
The price of inputs increase
Taxes decrease
23
Why study economics?
To understand the stock market
To be a better decision maker
To hang out with Mrs. Dunlop
To become wealthy
24
If production is increasing as units of labor increase, you are in what stage of production?
Stage 2
Stage 4
Stage 3
Stage 1
25
What is the most important characteristic of free enterprise capitalism?
Competition
Economic security
Profit motive
Economic equity
26
Why is our Catholic/Christian identity important to economics?
So God will bless us with wealth
To respect the dignity of Man created in the image of Christ
Because Christian treat people better than non-Christians
Without it, we would be poor
27
Which best describes substitutes?
Two products that can be purchased in place of one another
As the price of one goes up, demand for the other goes down
Butter and margarine
Razors and razor blades
28
The end of summer would cause the demand for flip flops to
Shift to the right
slide to the right
Slide to the left
Shift to the left
29
What causes movement ALONG the supply/demand curve?
A change in quantity demanded/supplied
A change in production costs
A unit elastic product
A change in supply/demand
30
This change in the demand for flip flops is caused by consumer taste.
False
True
31
Money saved for an anticipated, non-monthly expense is
A sinking fund
A retirement fund
A maintenance fund
An emergency fund
32
Utility is
Not important to economics
The usefulness of an item
Something necessary
The combination of usefulness and consumer satisfaction
33
A celebrity endorsing your brand would cause what to demand?
A shift to the left
A slide to the left
A shift to the right
A slide to the right
34
What could cause a supply curve to SHIFT to the right?
Taxes increase
Technology is introduced
Total number of firms decreases
Subsidies are removed
35
A change in supply/demand
Causes the curve to shift
Creates movement along the curve
Is caused by a change in price
Is never caused by Prices
36
The observation that some necessities have low value while non-necessities have higher value
Paradox of value
Wealth
Circular flow of economic activity
Value triangle
37
What does the government in a free enterprise economy provide for its people?
Full employment
Job security
Infrastructure
Military
38
Technology generally causes
Supply to increase due to increased productivity
Wages to increase
Layoffs
Supply to decrease due to glitches
39
A change in quantity supplied/demanded
Is never caused by price changes
Caused a shift in the curve
Creates movement along the curve
Is only affected by price
40
The elasticity of this product appears to be
Unit elastic
Elastic
Inelastic
Not elastic
41
A change in quantity demanded:
Is shown by a shift and is not affected by price
Is shown by a slide and is not affected by price
Is shown by a slide and is only affected by price
Is shown by a shift and is only affected by price
42
2 of the 8 causes for change in demand.
Complements and Expectations
Price Decrease and # of Consumers
Complements and Higher Prices
Consumer Income and Profitability
