Duplicate of Econ Final

Question 1

To estimate elasticity, compare ___ of a price change to the ___ of the change in total revenue

Accepted Answer

direction, direction

Question 2

Which statement best describes the purpose of the production possibilities curve?

Accepted Answer

identifies combinations of goods/svcs economy can produce

Question 3

Local government increasing property taxes to improve the school system is an example of

Accepted Answer

subsidizing a positive externality

Question 4

Under perfect competition, what sets the equilibrium price in the market?

Accepted Answer

supply and demand

Question 5

economic action done or brought about by free choice

Accepted Answer

voluntary exchange

Question 6

Which two terms are the most similar in meaning?

Accepted Answer

fixed costs and overhead

Question 7

What do price ceilings and price floors prevent?

Accepted Answer

prices reaching equilibrium

Question 8

Which of these statements describes a disadvantage of a traditional economy?

Accepted Answer

New ways of doing things are discouraged

Question 9

economic side effects that affect an uninvolved third party

Accepted Answer

externalities

Question 10

system in which economic activity is driven by supply, demand, and the price system

Accepted Answer

market economy

Question 11

Which would an economist consider a likely complement for coffee?

Accepted Answer

donuts

Question 12

In a competitive market economy, prices are considered

Accepted Answer

neutral

Question 13

Which of these statements is descriptive of a market economy?

Accepted Answer

Economic decisions are made by individuals, not for them

Question 14

Which explains why products made under a command economy are more likely to be low quality?

Accepted Answer

Workers have little incentive to make them well

Question 15

Equilibrium is reached when what occurs?

Accepted Answer

quantity supplied equals quantity demanded

Question 16

Paradox of Value refers to the

Accepted Answer

high value of nonessential item; low value of essential item

Question 17

How are economic transactions shaped in a traditional economy?

Accepted Answer

Elders/ancestors make certain things done in specific ways

Question 18

What do most economists believe is the most efficient way to allocate resources?

Accepted Answer

competitive markets

Question 19

In the economic term oligopoly, the word part oli- probably means

Accepted Answer

"few"

Question 20

Which product most likely has a demand that is inelastic?

Accepted Answer

a vital medicine

Question 21

a fundamental problem in every society

Accepted Answer

scarcity

Question 22

What are the characteristics of demand?

Accepted Answer

the desire, ability, and willingness to buy a product

Question 23

What is the opposite of a surplus?

Accepted Answer

shortage

Question 24

Which of these can be added to determine total costs?

Accepted Answer

fixed costs and variable costs

Question 25

situation where quantity supplied is greater than quantity demanded at a given price

Accepted Answer

surplus

Question 26

According to the Law of Supply, which of these would happen to an item as its price rose?

Accepted Answer

producers would make more of it

Question 27

What would an item's producer be most likely to do if total revenue on that item began to drop?

Accepted Answer

produce less of that item

Question 28

production expenses that do not change when output changes

Accepted Answer

fixed costs

Question 29

Which term best describes rent control?

Accepted Answer

price ceiling

Question 30

Which of these best describes the influence of high prices on the behavior of producers?

Accepted Answer

high prices are an incentive for producers to produce more

Question 31

Which would an economist consider a likely substitute for coffee?

Accepted Answer

tea

Question 32

point in time when GDP stops expanding and begins to decline

Accepted Answer

peak

Question 33

Which type of economy is most prevalent in the world today?

Accepted Answer

mixed

Question 34

the extent to which a change in price causes a change in the quantity demanded

Accepted Answer

demand elasticity

Question 35

When a factory pollutes a river, the resulting water pollution is an example of a

Accepted Answer

negative externality

Question 36

the highest legal price that can be charged for a product

Accepted Answer

price ceiling

Question 37

The four factors of production are land, labor, capital, and

Accepted Answer

entrepreneurs

Question 38

What effect would a bumper crop most likely have on the price of that crop?

Accepted Answer

decrease

Question 39

The most comprehensive measure of a nation's wealth is provided by its

Accepted Answer

gross domestic product

Question 40

The study of economics involves

Accepted Answer

explaining how people deal with scarcity

Question 41

products related in such a way that increase in the price of one reduces demand for the other

Accepted Answer

complements

Question 42

Which of these economic systems have the least in common?

Accepted Answer

command economy and capitalism

Question 43

system of allocating goods and services without prices

Accepted Answer

rationing

Question 44

The economic system of the United States is considered a

Accepted Answer

free market capitalistic economy

Question 45

principle that more will be offered for sale at higher prices than at lower prices

Accepted Answer

Law of Supply

Question 46

Pure competition and monopoly

Accepted Answer

are opposites

Question 47

What do low prices signal buyers to do?

Accepted Answer

buy more

Duplicate of Econ Final

Questions 47

Duplicate of Econ Final

Questions 47