Midterm EAE

Front

Scarcity refers to:

Back

Limited resources and unlimited wants

Front

Which of the following is NOT a consequence of scarcity? Options: Resource prioritization, Opportunity cost, Price fluctuations, Unlimited access to goods

Back

Unlimited access to goods

Front

The law of demand states that:

Back

As price decreases, quantity demanded increases

Front

In a market economy, what is the primary driver of resource allocation?

Back

Supply and demand

Front

How do businesses contribute to the economy?

Back

Creating jobs, Generating economic growth, Fueling consumer spending

Front

What is the opportunity cost of choosing to go to university instead of taking a gap year?

Back

The potential experiences and learning gained during the gap year

Front

Example of how scarcity drives innovation: A company increasing production of a popular product, A government implementing price controls on essential goods, Developing renewable energy sources due to dwindling fossil fuels, Consumers buying more of a product when its price decreases

Back

Developing renewable energy sources due to dwindling fossil fuels

Front

A mixed economy combines elements of:

Back

Market and command economies

Front

How can scarcity lead to short-term thinking?

Back

By prioritizing immediate needs over long-term sustainability

Front

Which of the following describes the multiplier effect in economics?

Back

The proportional amount of increase or decrease in final income that results from an injection, or withdrawal, of spending.