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Basics of Economics 1 Flashcards | StudBud

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Basics of Economics 1

10 terms·StudBud Administration·38 plays

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Questions 10

Answers

1
Ceteris paribus means...
"one variable too many"
"all other things constant" or "nothing else changes"
"assuming economic motives"
"the correct relationship specified"
2
The law of supply states
As prices increase, supply increases
As prices increase, demand falls
As prices increase, demand increases
As prices increase, supply falls
3
Which factor does not affect the supply curve?
Technology factors
Tastes, preferences and trends
Political factors
Prices of related goods
4
The law of demand states
As prices increase, supply falls
As prices increase, demand increases
As prices increase, demand falls
As prices increase, supply increases
5
Economics is the study of
Government deciding what to produce
People controlling money in an economy
People allocating limited resources to satisfy unlimited wants
Consumers deciding what to buy
6
Supply and demand graphs have the two axis: quantity and ______________.
Supply
Quantity demanded
Price
Quality
7
An increase in supply sees a shift left of the supply curve.
True
False
8
Economic Shortage
resources exceed wants
above the equilibrium price
demand exceeds supply
supply exceeds demand
9
Which factor does not affect the demand curve?
Substitutions
Complements
Income
Costs of production
10
Economic Surplus
below the equilibrium price
demand exceeds supply
wants exceed resources
supply exceeds demand