FREE ECONOMICS AND STUDY GAMES ABOUT

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FREE ECONOMICS AND STUDY GAMES ABOUT

ECONOMICS -_____- EXAM QUESTIONS

Actual Qs and Ans Expert-Verified Explanation

This Exam contains:

-Guarantee passing score -33 Questions and Answers -format set of multiple-choice -Expert-Verified Explanation

Question 1: 18. Quantity demanded moves along the demand curve in response to

changes in what?

Answer:

The supply demanded

Question 2: 9. what does it mean to maximize utility?

Answer:

When making a purchase decision, consumer attempts to get the greatest value poosible for the lowest amount of money Question 3: 28. If a manufacturer introduces a new product with a successful advertising campagn and an artificially low introductory price, what will most likely result?

Answer:

in a shortage

Question 4: 20. Supply depends on the willingness and ability of what?

Answer:

Producers to produce

Question 5: 25. What is an example of diminishing marginal utility?

Answer:

Someone who has one bicycle will have less use for another one.

Question 6: 26. What is market equilibrium?

Answer:

Where the supply is the exact amount as the demand

Question 7: 27. The equilibrium price is the price At which what?

Answer:

The supply of an item equals the quantity demanded

Question 8: 31. THe purpose of rationing during WW2 was to what?

Answer:

to ensure that evryone could get essential scarce goods.

Question 9: 4.How are free markets efficient?

Answer:

That everyone has acess to info, understands interprets info correctly, and cost of production.Question 10: 29. What event in Florida and Cali could most likely shift the supply curve for orange juice to the left?

Answer:

An early frost accompinied by ice storms Question 11: 17. In the Summer picnic season, a sharp rise in the price of brugers may lead to an increase in demand for what?

Answer:

Hot dogs, any other substitute

Question 12: 22. What could increase the supple of soccer balls?

Answer:

A decrease in the price of raw materials

Question 13: 16. The law of demand states that as quantity demanded decreases what?

Answer:

price increases

Question 14: 3. What is a market?

Answer:

Exchange of goods and services that takes place of buyers and sellers.

Question 15: 11. What are the economic goals in a traditional economy?

Answer:

Full employment, price stability, satisfactory rate of economic growth, free trade, correct distribution of income, and efficient location

Question 16: 14. What is specialization?

Answer:

Method of production where a buisness or area focuses on the production of a limited scope of products or services

Question 17: 6. What are the factors of production?

Answer:

Land, labor and capital Question 18: 15. We depend on others to produce most of the goods and services we want.what idea is this called?

Answer:

Economic interdependance Question 19: 32. In a market with perfect competition, how are prices determined?

Answer:

determined between the forces of market supply and demand

Question 20: 30. What is the usual result of setting a price ceiling on rents?

Answer:

More people want to rent apartments then are available to rent.

Question 21: 21. According to the law of supply, what happens as price increases?

Answer:

The quantity supplyed increases

Question 22: 5.Peoples wants are unlimited, this means what is always present?

Answer:

scarcity of needs, shortages, marginal utility, and cost of production.Question 23: 12. What does Adam Smiths idea of an "invisible hand" represent?

Answer:

Marketing towards a product like buy one get one free or 1/2 off Question 24: 33. How is the competition among resturants in a big city exampple of monopolistic competition?

Answer:

Because people think its all the same products or food, but there are slight differences.

Question 25: 13. Which kind of economy is most common today?

Answer:

Market Economy

Question 26: 8. Why are tradeoffs necessary?

Answer:

B/c resources vary in their abundance and difficulty to obtain

Question 27: 24. What happens as a result of a price increase?

Answer:

The supply increases Question 28: 1. Why might some historians consider Adam Smith one of the most influential people in history?

Answer:

B/c of his theory about free trade with limited government intervention