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Econ Honors Unit 1 Review Flashcards | StudBud
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Econ Honors Unit 1 Review
Econ Honors Unit 1 Review
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Questions
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Answers
1
If Apple dropped their iPhone prices, the Law of Demand states that
a lower quantity demanded of iPhones
a higher quantity demanded of iPhones
Apple will go out of business
quantity demanded of iPhones is unchanged
2
The opportunity cost of any action is
all the possible alternatives forgone
the time required but not the monetary cost
the monetary cost but not the time required
the best alternative forgone
3
Economics is the study of
the development, structure, and functioning of human society
the management of large amounts of money, especially by government
human societies and cultures and their development
how people make choices when faced with limited resources
4
On this PPC, point G would be considered
Fully employing resources
Inefficient
Unattainable
Efficient
5
Marginal Revenue is the additional revenue one receives from producing and selling 1 more unit of output
False
True
6
A producer of laptops is able to obtain parts at a lower price. How will this affect the supply curve?
Increase
Movement along the curve
Decrease
Shift to the left
7
Over time, goods tend to become more inelastic
False
True
8
OHS is unable to provide Chromebooks to all students. This is a problem of
Management
Equilibrium
Surplus
Scarcity
9
Chicken & oil are complements. If people's concern about health shifts demand for oil left, what happens to chicken?
Same price
Higher equilibrium price
Lower equilibrium price
10
Point G can be obtained if this economy experienced
Lower Birth Rate
Economic Stagnation
Decrease in Technology
Economic Growth
11
The price of a good will rise if there is a shortage
False
True
12
Coffee prices skyrocket. What happens to the demand for coffee creamer?
Shifts to the left
Remains unchanged
Decreases
Shifts to the right
13
A company sends some its employees to an annual conference that includes training in order to invest in their
Human Capital
Labor Force
Physical Capital
Profits
14
An example of a perfectly inelastic good would be
Face Masks
Movie Tickets
Water
Air
15
A business owner sold 500 wings in 1 day at $0.75/wing. The wings cost her $200. She makes a profit of
$575
$175
$500
$200
16
To maximize utility, one should produce where marginal cost is equal to marginal revenue
False
True
17
A hamburger costs $6, while a hot dog costs $2. The opportunity cost of a hot dog (in terms of a hamburger) is
1/3 hot dog
1/2 hamburger
3 hot dogs
3 hamburgers
18
Movement along the demand curve indicates that
the price of the good has changed
consumer preferences have changed
future expectations of the good are positive
price of a substitute increased
19
When quantity supplied is higher than quantity demanded, there will be a(n)
Shortage
Surplus
Equilibrium
20
The law of supply has a _____ relationship between price and quantity supplied
positive
inverse
negative
reciprocal
21
On this PPC, the opportunity costs of moving from point B to C is
30 Capital Goods
40 Capital Goods
15 Consumer Goods
20 Consumer Goods
22
Johnny spends his paycheck to pay his water bill, which would be considered a ______ as it's essential for survival
Desire
Want
Need
Luxury
23
The 4 factors of production are
Land, Labor, Capital, Entrepreneurship
Land, Buildings, Machines, Entrepreneurship
Land, Labor, Stock, Entrepreneurship
Labor, Physical Capital, Human Capital, Business Management
24
On this PPC, point F would be considered
Fully employing resources
Unattainable
Inefficient
Efficient
25
Gasoline is considered _____ while plane tickets are considered _____
inelastic ; elastic
unit elastic ; elastic
inelastic ; unit elastic
elastic ; inelastic
26
If price elasticity of demand is calculated as 1.2, that good would be considered inelastic
False
True
27
Every trade-off is an opportunity cost, but not every opportunity cost is a trade-off
False
True
28
Spam is a(n) _____ good while a ribeye steak is a ____ good
normal ; inferior
superior ; normal
inferior ; normal
inferior ; superior
29
A bowed out PPC, like this one, display
Constant Opportunity Costs
Increasing Opportunity Costs
Zero Opportunity Costs
Decreasing Opportunity Costs
30
If you buy 1 TV, the cost is $500. If you buy 2 TVs, you get a deal and pay $800. What is the marginal cost?
$1,300
$300
$800
$500
