Which best describes buying power?

quantity of goods and services a person can buy

The demand for a good is elastic when?

the demand curve shifts to the right

Which best describes a subsidy?

government pays to support a business or market

Which best describes variable costs?

a cost that rises or falls based on production

Which best describes the Law of Demand?

when a goods price fluctuates and effects the buying power

Which best describes the law of supply?

tendency to offer more of a good at a higher price

Which best describes price effect?

people will buy less at a higher price

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Law of Demand vs. Law of Supply

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Questions 13

Answers

1
How would a firm best owner increase marginal returns?
increase labor force
decrease labor force
Set prices at a higher level to increase profit
open multiple factories
2
What would you do if you owned a business and your total revenue was less than your total cost?
sell to Rowland
continue to operate at current rate
jump ship
spend all that money
3
Which best describes buying power?
constraints a person must abide by
people will buy less at a higher price
quality of goods and services a person can buy
quantity of goods and services a person can buy
4
The demand for a good is elastic when?
total revenue decreases with each decrease in price
the demand curve shifts to the right
total revenue increases with each decrease in price
price changes have no effect on total revenue
5
Which best describes a subsidy?
money from firm owner re-invested in buisness
private individual pays to support a buisness
government pays to support a business or market
government intervention to affect price and quantity
6
Which best describes variable costs?
a cost that rises or falls based on production
all factors in the final price
extra cost for one more unit to be produced
a cost that does not change
7
Which best describes fixed costs?
a price that rises or falls depending on production
a cost that changes
a cost that does not change
a cost that needs to be fixed constantly
8
Which best describes the Law of Demand?
when a goods price fluctuates and effects the buying power
The tendency to offer a goof at a higher price
the amount of goods availble
the desire to own something and the ability to pay for it
9
If you had a failing business, which would be the best decision to save your firm?
Fire workers
Decrease production
Hire more workers
Increase production
10
Which best describes the law of supply?
when the price fluctuates and effects consumers buying power
consumer buys from another source at a lower price
change in consumption base don a change in income
tendency to offer more of a good at a higher price
11
Changes in population would best effect which economic concept?
Consumerology
Supply
Scarcity
Demand
12
Which best describes price effect?
people will buy more at a higher price
people will sell more at a higher price
people will sell more at a lower price
people will buy less at a higher price
13
Which of the following would be an example of variable costs?
labor and materials
rent
loan payments
property tax

Law of Demand vs. Law of Supply Flashcards | StudBud