If ramen is an inferior good, what happens to its price and quantity if consumer incomes go up

quantity decreases, price decreases

An individual's demand for a good or service is determined by

his willingness and ability to purchase the product

Which of the following is a capital good?

a belt sander used to finish a guitar body

The implementation of an effective price floor will likely have which effect on a market?

the quantity supplied will increase

Crocs and sandals are substitute goods: what happens in the sandal market Croc prices increase?

price of sandals increase, quantity of sandals increase

What is the best definition of utility?

want-satisfying power of a good or service

What is the optimal point at which a consumer/supplier will purchase/supply a product?

when marginal benefit equals marginal cost

Which of the following is the best definition of scarcity?

unlimited desire for resources but limited resources

If Hurricane Florence destroys the clam beds in NC, what will happen in the clam soup market?

Price increases, quantity decreases

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Economics Basics

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An #economics quiz to introduce #supply #demand and other vocabulary for #AP Economics

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Questions 10

Answers

1
If ramen is an inferior good, what happens to its price and quantity if consumer incomes go up
quantity decreases, price increases
quantity increases, price increases
quantity increases, price decreases
quantity decreases, price decreases
2
An individual's demand for a good or service is determined by
his willingness and ability to purchase the product
the quantity of the product supplied
the demand of other customers in the market
the price of the product
3
Which of the following is a capital good?
a belt sander used to finish a guitar body
a luthier (a person who makes guitars)
phosphor bronze guitar strings
a tree used to make a guitar
4
Which of the following is NOT a trait of a market economy?
collective property
specialization in production
private property
the use of money
5
The implementation of an effective price floor will likely have which effect on a market?
the quantity supplied will decrease
the quantity supplied will increase
the quantity demanded will increase
it will be at market equilibrium
6
Crocs and sandals are substitute goods: what happens in the sandal market Croc prices increase?
price of sandals decreases, quantity decreases
price of sandals increase, quantity of Crocs increase
price of sandals decrease, quantity of Crocs decrease
price of sandals increase, quantity of sandals increase
7
What is the best definition of utility?
what a consumer is willing to pay for a good or service
want-satisfying power of a good or service
usefulness of a good or service
need satisfying power of a good or service
8
What is the optimal point at which a consumer/supplier will purchase/supply a product?
when total benefit is greater than total cost
when marginal benefit is greater than marginal cost
when total benefit equals total cost
when marginal benefit equals marginal cost
9
Which of the following is the best definition of scarcity?
unlimited desire for resources and unlimited resources
limited desire for resources but unlimited resources
limited desire for resources and limited resources
unlimited desire for resources but limited resources
10
If Hurricane Florence destroys the clam beds in NC, what will happen in the clam soup market?
Price decreases, quantity decreases
Price increases, quantity decreases
Price increases, quantity increases
Price decreases, quantity decreases

Economics Basics Flashcards | StudBud