Each society determines who will consume what is produced based on

its unique combination of social values and goals.

In the cafeteria, there are servers, grill cooks, dishwashers, and cash-register attendants.

Specialization and division of labor

Which one of the following could explain the shift in the demand curve from D1 to D2?

A fall in the price of DVD movies

When price is used to allocate resources, prices

send a signal to producers&consumers about market conditions

the $ for electric cars decreases 20% while demand is the same. Which will MOST LIKELY happen

Consumers will buy more electric cars

Opportunity cost is best described as the

Value of the next best alternative forgone

Which of the following is not considered to be a Factor of Production?

Taking your date to a movie theater on Friday night.

What is the definition of medium of exchange?

Payment used to make trading easier

What would be the primary reason for Scarcity?

Limited Resources and Unlimited Wants

A Production Possibilities Curve would show an economist

All possible combinations of two goods that can be produced

Which of the following is true according to the supply and demand graph?

P1 is the price where the amount demanded & supplied equal

As the market price rises, the quantity demanded decreases along the demand curve because

More consumers leave the market

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Economics GMAS Review

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Questions 17

Answers

1
producers freely choose what to produce and sell, & consumers freely choose what they will buy
Voluntary exchange
Command economic interaction
Market analysis
Production possibilities
2
Each society determines who will consume what is produced based on
its unique combination of social values and goals.
economic equity
its needs and wants.
the amount of factor payments.
3
In the cafeteria, there are servers, grill cooks, dishwashers, and cash-register attendants.
Full employment
Arbitration
Mass production
Specialization and division of labor
4
Which one of the following could explain the shift in the demand curve from D1 to D2?
A fall in the price of DVD players
An increase in the price of DVD players
An increase in the level of interest rates
A fall in the price of DVD movies
5
When price is used to allocate resources, prices
Are usually controlled by a central governmental agency
Are determined solely by production costs
Must rise to make sure producers make a profit
send a signal to producers&consumers about market conditions
6
In which market would a producer buy the equipment & technology needed to manufacture bicycles?
Goods and services market
Product Market
Resource market
Market Demand
7
the $ for electric cars decreases 20% while demand is the same. Which will MOST LIKELY happen
People will stop driving electric cars
Producers will no longer make electric cars
Governments will stop the production of electric cars
Consumers will buy more electric cars
8
study of how individuals, firms, and nations can best allocate limited resources is called
Study of production
Entrepreneurship
Capital
Economics
9
Which systems would most likely have yearly production quotas set by a central authority?
Traditional Economy
Command Economy
Market Economy
Mixed Economy
10
the govt offers a guaranteed min $ to sugar producers then in the market there is likely to be
Excess supply of sugar of AB
No change in the market equilibrium price
Excess demand for sugar of AB
A fall in the market price below Pe
11
Opportunity cost is best described as the
Sum of all production costs
Most expensive resource used in production
Value of the next best alternative forgone
Monetary value of all alternatives forgone
12
Which of the following is not considered to be a Factor of Production?
Farmland.
Sally going to college at night.
A doctor treating a sick patient.
Taking your date to a movie theater on Friday night.
13
What is the definition of medium of exchange?
Investment for retirement
Payment used to make trading easier
Visiting another country
Trade agreements for national security
14
What would be the primary reason for Scarcity?
Limited Productive Resources
Limited Resources and Unlimited Wants
Unlimited Wants
Shortages
15
A Production Possibilities Curve would show an economist
All profitable combinations of goods that can be produced
All combinations of goods that cannot be produced
All possible combinations of goods to be produced
All possible combinations of two goods that can be produced
16
Which of the following is true according to the supply and demand graph?
At P1 the amount of consumers exceed producers
Q1 is the amount where consumers will experience shortages
P1 is the price where the amount demanded & supplied equal
C At Q1 the amount supplied is more than the amount demanded
17
As the market price rises, the quantity demanded decreases along the demand curve because
More consumers leave the market
More consumers enter the market
More producers leave the market
More producers enter the market

Economics GMAS Review Flashcards | StudBud