Economics

Front

Economics is best defined as: (Select ONE) The studies of how people make choices to satisfy their wants.

Back

The studies of how people make choices to satisfy their wants.

Front

As the demand for T-shirts increases, how will T-shirt producers likely respond?

Back

Buy more cotton fabric to produce more T-shirts.

Front

During the holiday season, more people decide to purchase DVDs. What action will DVD producers take in response?

Back

They will produce more copies of DVDs.

Front

Which situation would give a business more control over the price of its product? Options: an increase in the cost of labor, an increase in the cost of capital goods, a decrease in competition in the market, a decrease in consumers' income

Back

a decrease in competition in the market

Front

I own an oil refinery. Summer is coming, and people are going to be driving everywhere! They're going to need LOTS of gasoline. Will the price go up?

Back

Yes

Front

I just invented the world's first self-folding chair!  It folds itself up and puts itself away. Nobody else makes anything like it! Will the price go up?

Back

Yes

Front

What should a person do with rocks when everyone wants to buy Gnomes for their garden? Options: Sell them at a discount, Use them for landscaping projects, Wait for the trend to change, Give them away for free

Back

Sell them at a discount

Front

Centralized Government Controls are most closely associated with: Command Economy, Traditional Economy, Mixed Economy, Free-Enterprise Economy.

Back

Command Economy.

Front

In a Market Economy, how does Competition benefit Consumers?

Back

Consumers will see better prices and quality of products in a competitive market.

Front

Free Market Economy

Back

The laws of supply and demand allocate resources, goods, and services with little government interference