Which of the following laws is considered a trade barrier?

paying money to an industry to encourage it to make goods in the country

Which of these is an example of a monetary incentive?

earning an allowance for doing chores

How do banks most help grow the economy?

They provide loans for consumers and investors

What does a relative price compare?

the price of one good or service to another

Which of the following goods or services is an import in the United States?

kitchenware purchased online from China

How does scarcity affect customers?

Limited money forces consumers to make choices.

Which situation is more likely to occur in a market economy than a command economy?

An inventor designs and produces a new type of car.

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Economics Basics Review

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Questions 11

Answers

1
When are equilibrium prices achieved?
when demand is greater than supply
when supply equals demand
when sellers break even
2
Which of the following laws is considered a trade barrier?
paying money to an industry to encourage it to make goods in the country
A company that produces furniture is shut down
federal aid given to unemployed workers from a factory
3
Which of these is an example of a monetary incentive?
making friends on a sports team
having fun walking a dog
learning a new skill by studying it
earning an allowance for doing chores
4
How do banks most help grow the economy?
They are backed by the federal government.
They offer both checking and savings accounts.
They are difficult to steal from.
They provide loans for consumers and investors
5
How would supply shift caused by lower costs of production affect price and quantity?
lower price, lower quantity
higher price, higher quantity
higher price, lower quantity
lower price, higher quantity
6
What does a relative price compare?
the price of one good or service to another
the price that buyers pay to the price that sellers ask
the price different sellers ask for the same good
7
Which of the following goods or services is an import in the United States?
software created in California and used in Chicago
apples grown on a farm in Vermont
kitchenware purchased online from China
8
How does scarcity affect customers?
Limited time prevents customers from making decisions.
Limited wants and needs limit customers to small purchases
Limited numbers of producers force customers to be loyal.
Limited money forces consumers to make choices.
9
Which of these is an example of a capital resource?
computers
workers
iron ore
entrepreneurs
10
Which situation is more likely to occur in a market economy than a command economy?
A student is guaranteed a job out of college.
An inventor designs and produces a new type of car.
A committee chooses which farms should receive new tractors.
11
According to the law of demand, what role do low prices serve for buyers?
substitute
reward
supply
penalty

Economics Basics Review Flashcards | StudBud