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Economics Basics Flashcards | StudBud
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Economics Basics
Economics Basics
30 terms
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30 cards
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Questions
30
Answers
1
The amount of a product in the market
Supply
Consumption
Demand
Output
2
Which variable is on the vertical axis of a demand curve?
Profit of the producer
Quantity of the good produced
Price of the good
Quantity of the good consumed
3
Gracie owns all the blue properties in a game of Monopoly. Carmen wants a blue property but..
Experiences bullying
Experiences a barrier to entry
Carmen processes market power
Lauren has a government-created monopoly
4
A good whose demand is negatively related to income.
Negative good
Inferior good
Bad good
Ratchet good
5
The Xbox ∑ comes out. People pay $500 bucks while equilibrium price is $50.
$550 in opportunity cost
$450 in producer surplus
$450 in consure surplus
10x of producer magnitude
6
A new ferret is being sold. You would pay $100 for the ferret but the price is $70.
$30 in producer surplus
Opportunity cost is $170
That a steal for a ferret!
$30 in consumer surplus
7
An increase in candy distribution to students increases the happiness experienced by students
Positive Economics
Scarcity
Diabetes waiting to happen
Normative Economics
8
When the demand for this good increases due to a price drop of another good
Inferior goods
Silly
Complements
Substitutes
9
Hans produces mucous better than Max, therefore....
Alex has an externality of less friday night obligations
Alex has a competitive advantage in mucous
Andrew has a competitive advantage in mucous
Alex and Andrew could trade and both be better off
10
Effect that price has on the demand of a good or service.
Necessity
Surplus
Elasticity
Demand
11
100 candies, 100 students each student gets 1 candy or 1 student gets all of the candy.
Positive Economics
Limitations
Wrong, just wrong
Pareto Efficient
12
Gasoline increases in price therefore people drive less
Normative Economics
Logic
Positive Economics
Assumptions
13
Identify the pair of substitutes
peanut butter and jelly
flashlights and batteries
pens and milk
Blue Bell and Ben & Jerry's
14
Which factor does NOT cause a shift in the demand curve?
Price
Tastes
Income
Expectations
15
Andre decides to go to college, which of the following is not an opportunity cost he faces?
Tuition
Books
Room and board
Time spent in class
16
Cars and gasoline are BEST described as
necessities
complements
inferior goods
substitutes
17
The good or service you give up to take part in a different good or service?
Greed
Opportunity Cost
Externality
Rationality
18
A basic assumption in economics that people make educated decisions?
Rationality
Scarcity
Savings
Trade
19
Which of these questions would a positive economist try to answer?
How will brownie demand change with increased ice cream $ ?
What is the best priced brand of ice cream?
Should ice cream and brownies be sold together?
How much should ice cream cost?
20
Good that are bought less frequently as income increases.
Normal goods
Inferior goods
Luxury goods
Infantile goods
21
Which of the following is NOT a characteristic of a perfectly competitive market?
Large numbers of buyers and sellers
The good is valuable
People are well informed
Good is highly standardized
22
Abigail opens a Cinnabon in the commons. The smell makes more people buy the school lunch.
This is a positive externality
Meagan is running a monopoly
Mmmmm Cinnabon. Yay for diabetes
This is a negative externality
23
A good whose demand is positively related to income.
Good good
Positive good
Normal good
Abnormal good
24
Which way would the demand curve shift if the demand for ice cream decreased?
Down
Right
Left
Up
25
The basic premise of economics?
Money
Greed
Scarcity
Consumers
26
Domino's Pizza might be described as a
Public Good
Private Good
Inferior Good
Normal Good
27
Rent, time and equipment purchase
Deadweight loss
Fixed costs
Variable costs
Marginal costs
28
When demand drops for a good when the price of another good goes down
Exchanges
Substitutes
Complements
Silly
29
Kate, Krissie, Kristina, and Kayly control the capital "K's" and agree to reduce production.
This is a "K" cartel
This is a "K" market failure
This is a "K" price discrimination
This is a "K" monopoly
30
Which of these statements is NOT a basic economic assumption?
People act rationally
All things are limited
Trade is good
Markets are efficient
