Build a Test
Economics Final 2010
Is this your test?
to manage it. If not, you can
build a test
just like it.
Report this quiz
The study of economics is...
The study of how countries trade with one another
The study of how people seek to satisfy their needs and wants by making choices while dealing with scarcity
The study of how people and animals interact on the market
the study of how universes declare war on one another
Course of action taken when faced with a set of alternatives.
Set of formal and informal rules that a society uses to answer the three basic economic questions.
Supply and Demand
Any reward or benefit, such as money or good feeling, that motivates choices and behaviors.
A situation in which decisions made by one person affect decisions made by other people.
Shortages in the market generally create this economic problem.
increase in demand
increase in supply
Cost of borrowing money from a financial institution.
An economy that relies on a system of interdependent market prices to allocate goods, services, and productive resources and to coordinate the diverse plans of consumers and producers, all of them following their own self-interests.
Centrally Planned Economy
Purchase of capital (including machinery, technology, or new buildings) goods used to make counsumer goods and services.
Purchasing of stocks
The second-best alternative that must be given up when scarce resources are used for one purpose instead of another.
A long term condition that exist when human wants exceed the capacity of available resources to satisfy those wants.
Determinant of Demand
Land, Labor, and Capital are all examples of
An economy in which most economic issues of production and distribution are resolved through central planning and control.
Adam Smith stated that Self-Interest drove the economy while _____________ regulated the economy.
Factors other than price that change the demand schedule, causing consumers to buy more or less at every price. Examples include: income, number of consumers, preferences, and price of related goods.
Determinants of Demand
Determinants of Supply
A condition when consumers will consume more at a lower price and less at a higher price.
Law of Incentives
Law of Supply
Law of Demand
You choosing to work more hours (provide labor) at a higher wage is an example of...
Law of Incentive
Law of Supply
Law of Demand
A good or service that may be used in place of another good or service.
A figure of speech representing the idea that firms and individuals making decisions in their own self-interest will at the same time create economic order and promote society's interest.
Determinants of Supply and Demand
Market in which the supply and demand for money, in the form of bank depsits and loans, determines the price of borrowing money.
Loanable Funds Market
Foreign Exchange Market
A characterisitic of people who assume the risk of organizing productive resources to produce goods and services.
The health, experience, training, and skills of people needed to be productive.
The resources used to make all goods and services are called
Factors of Production
What does the process of specialization do for an economy?
it makes it easier
it eliminates unemployment
it makes it more efficient
it fosters competition
Recent evidence suggests that Americans are not exercising enough and are eating too much. Using economic reasoning, how would you explain this behavior?
No one has ever told Americans about the advantages of exercise and healthy diet.
Americans are lazy
American cannot reist fatty foods
The overall benefits associated with working in service jobs outweigh the costs of reduced physical activity.
Shipwrecked survivors on a deserted island, even if they did not have a boat, might consider a wood paddle to be a scarce resource because:
it can be burned for heat
they would not consider it a scarce resource
it reminds them of home
it can be used for several valuable purposes
Economists encourage people to think carefully about decisions because there are no "costless decisions. Which of the following sentments best explains the idea?
There are no consequences for a poor decision
Economists tend to confuse money and consequesnces
In choosing an alternative, you give up the other alternative.
If you choose an alternative, you are forced to pay the money.
Which item will NOT change the supply for a good or service?
number of sellers
change in technology
The Natinal Football League "blacks out" local television for football games when the game in question is not sold out in advance. The NFL supports this action because it:
reduces the supply of football tickets
increases the amount of money that the networks pay to televise NFL games
increase the demand for football tickets
reduce the prices of football tickets
Why do people need to buy and sell products on the market?
People need to provide the market with goods and services
We need to maintain a competitive society
No one is self-sufficient
People need to buy and sell products to make a profit
Build a Test