Economics Chapter 1 Review Question Preview (ID: 41102)
Chapter 1 Review.
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When you move up the supply curve, what happens to the price and the quantity supplied?
a) Price increases and the quantity supplied increases
b) Price increases and the quantity supplied decreases
c) Price decreases and the quantity supplied increases
d) Price decreases and the quantity supplied decreases
When you move down the supply curve, what happens to the price and the quantity supplied?
a) Price decreases and the quantity supplied increases
b) Price increases and the quantity supplied increases
c) Price decreases and the quantity supplied decreases.
d) Price and supply stay the same
What happens to price and quantity demanded when there is upward movement along the demand curve?
a) Price increases and quantity demanded increases
b) Prices decrease and quantity demanded decrease
c) Price increases and quantity demanded decreases.
d) Price and demand stay the same
What happens to price and quantity demanded when there is downward movement along the demand curve?
a) Price decreases and quantity demanded increases.
b) Price increase, quantity demanded increases
c) Price increase, quantity demanded increases
d) Prices and demand stay the same
What is supply?
a) the amount of a good/service that producers are willing and able to sell
b) a person who buys goods and services
c) a person who provides goods or services
d) the amount of a good/service that consumers are willing and able to buy
What is a consumer?
a) a person who buys goods and services
b) a person who creates goods and services
c) a person who works
d) a person who returns items
Demand is
a) the amount of a good/service that producers are willing and able to sell
b) a person who buys goods and services
c) a person who provides goods or services
d) the amount of a good/service that consumers are willing and able to buy
Benefit-cost analysis is
a) the additional income received from each increase of one unit of sales
b) the combination of all fixed and variable costs
c) the money a business receives from selling its goods or services
d) an economic model that compares the marginal costs and marginal benefits of a decision
A trade off is
a) the alternative you face when you decide to do one thing rather than another
b) expenses that do change depending on how much a business produces
c) the combination of all fixed and variable costs
d) the money a business receives from selling its good or services
What is opportunity cost?
a) the third best option
b) the cost of the next best use of time or money when choosing to do one thing or another
c) the alternative you face when you decide to do one thing rather than another
d) your profit from a choice you have made
Sarah wants to buy clearance Valentine's Day candy for her friend. She narrows it down between conversation hearts and a heart-shaped box of chocolates. She buys the chocolates. What is her opportunity cost?
a) the chocolates
b) the conversation hearts
c) she doesn't have an opportunity cost because she bought an item from the clearance section.
d) her friend that gets to eat the chocolate
A mixed market is
a) an economic system in which decisions are made based on custom or habit
b) an economic system in which individuals and businesses own all resources and make economic decisions on the basis of price
c) an economic system in which the government makes the major economic decisions
d) a market economy that has elements of command and market
Which economic system does the US have?
a) command
b) traditional
c) mixed market
d) market
What is the basic economic problem?
a) money
b) opportunity costs
c) trade off
d) scarcity
Which is NOT one of the three basic economic questions?
a) What goods and services will be produced?
b) How will they be produced?
c) Who will consume, or use, them?
d) When will it be time to leave economics class?
What is scarcity?
a) desire individuals have that can be met by getting a good or service
b) a thing that can be used--natural resource, labor, capital--to make goods or services
c) to be afraid of money
d) the situation of not having enough resources to satisfy one's wants
What is economics?
a) the study a money and why we really need it
b) the study of how people and nations make choices about ways to use scarce resources to fulfill their wants and needs
c) the study of the past
d) the study of the mind and how money affects it
The three types of resources are
a) Natural resources, labor, capital
b) Natural resources, cell phones, labor
c) Capital, money, labor
d) goods, services, money
In a traditional economy
a) government regulates trade between families
b) decisions of what, how, and for whom to produce are based on custom, habit, or family
c) nations produce goods to sell
d) all resources are owned by the government
Resources are
a) unlimited
b) are never scarce
c) all the things we want
d) all the things that can be used in making products or services that people want.
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