What is the definition of medium of exchange?

Payment used to make trading easier

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

Specialization and division of labor

Opportunity cost is best described as the

Value of the next best alternative forgone

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

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

More consumers leave the market

Each society determines who will consume what is produced based on

its unique combination of social values and goals.

When price is used to allocate resources, prices

send a signal to producers&consumers about market conditions

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

What would be the primary reason for Scarcity?

Limited Resources and Unlimited Wants

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

Taking your date to a movie theater on Friday night.

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

Consumers will buy more electric cars

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Economics GMAS Review

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Questions 17

Answers

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

Economics GMAS Review Flashcards | StudBud