What is marginal utility?

extra usefulness or satisfaction

Which of the following best describes the shape of a supply curve?

Sloping upward from the bottom left

When is profit maximized?

When marginal costs is equal to marginal revenue

which of the following accurately describes a change in demand?

Consumer's expect a future price hike, rightward shift

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Nellis' Econ Unit 2 Review

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A #Economics #Review

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Questions 20

Answers

1
What is marginal utility?
extra cost associated with production
Additional benefit from
extra usefulness or satisfaction
Diminishing value
2
Which of the following is the most flexible and free of systems?
E-Barter
Barter
Price System
Rationing
3
Which of the following best describes the shape of a supply curve?
Not enough information is given
Sloping upward from the bottom left
Consistent throughout
Sloping downward from the upper left
4
A object has elastic demand in which of the following?
if Elasticity >1
if Elasticity < 1
if Elasticity = 1
All objects are elastic
5
What stage of Marginal Returns will a business be in if they start firing workers?
Stage III
Diminishing Marginal returns
Stage II
stage I
6
Measurement that compares price and demand
Disequilibrium
Elasticity
Equilibrium
Price Fluctuations
7
During Stage II of Marginal Returns what should a business do?
Keep Hiring workers
Fire People
close up shop
Be cautious in hiring workers
8
When is profit maximized?
When marginal cost is a quarter of marginal production
When marginal cost is half of marginal production.
When marginal cost is double of the marginal Revenue
When marginal costs is equal to marginal revenue
9
When a small change in price leads to a large change in demand it is _________?
Elastic
Elasticity
Inelastic
Unit Elastic
10
The law of demand states that as price rises ....
demand falls
supply falls
supply rises
demand rises
11
What is Equilibrium?
an X-men villain
Point at which demand < supply
Point at which demand = Supply
Point at which demand > supply
12
Which of the following represents a substitute relationship?
Tanks and Planes
Butter and Margarine
Hot dogs and Buns
Salt and Pepper
13
Which of the following is the best example of a price ceiling?
Excise Tax
Rent Control
Minimum Wage
Regulation on the types of paint a company may use
14
which of the following accurately describes a change in demand?
news that the product leads to cancer, rightward shift
increased production, rightward shift
Consumer's expect a future price hike, rightward shift
Decrease in price, leftward shift
15
Which of the following would not cause a change in demand.
price
technology
input costs
consumer's expectations
16
Which of the following is a component of Demand?
ownership of the product
desire to buy
competes with others
ability to sell
17
Supply has a __________ relationship to price.
Elastic
Direct
Inelastic
Inverse
18
Minimum Wage is an example of what?
Price floors
poor economic planning
Price ceilings
Deregulation of the economy
19
Demand has a ________ relationship to price.
Elastic
Inelastic
Inverse
Direct
20
Which of the following is not a state of disequilibrium?
Scarcity
Surpluses
Shortages
Equilibrium

Nellis' Econ Unit 2 Review Flashcards | StudBud