Duplicate of Economics Test Review

Question 1

Which of the following scenarios could cause the following shift?

Accepted Answer

An increase in the population

Question 2

The branch of economics that studies the choices of individual households and firms is:

Accepted Answer

Microeconomics

Question 3

If a government wants to set a ceiling price, it should set it:

Accepted Answer

Below the equilibrium price

Question 4

This graph helps demonstrate the law of:

Accepted Answer

increasing relative cost

Question 5

Shaded area "B" in this graph represents a(n):

Accepted Answer

surplus

Question 6

A supply curve is directly affected by:

Accepted Answer

All of the above

Question 7

Which form of government is at the extreme right?

Accepted Answer

Fascism

Question 8

Production decisions are made by a small group of political leaders in which form of economy?

Accepted Answer

command

Question 9

What effect would a decrease in the price of cocoa have on the Cadbury chocolate market?

Accepted Answer

An increase in supply

Question 10

Which of the following could cause the demand curve to shift to the right?

Accepted Answer

An increase in the price of a substitute good

Question 11

A decrease in the price of mangoes is likely to decrease the demand for:

Accepted Answer

watermelon

Question 12

The categories of tangible resources are:

Accepted Answer

labour, land and capital

Question 13

If achieving one economic goal makes another easier to achieve, the goals are:

Accepted Answer

Complementary

Question 14

When the price is below the equilibrium price, there will be a(n):

Accepted Answer

shortage

Question 15

Which of the following is an example of a normative statement?

Accepted Answer

Households should save more money

Question 16

In this figure, the opportunity cost of producing one moreaudio tape at point “a” is:

Accepted Answer

1 video tape

Questions 16