Semester Exam Review II

Front

Scarcity is a basic economic problem because —

Back

resources are limited

Front

In a free market society, the answer to the question about how much to produce is determined by —

Back

consumer demand

Front

Why did Maria sell fewer jeans when she increased the price?

Back

The consumers were less able or willing to pay.

Front

Which event would MOST LIKELY cause the price of a sports magazine to decrease? A. A competing sports magazine firm closes. B. The largest sports news website starts offering free subscriptions. C. A natural disaster destroys the country’s largest paper mill. D. The magazine wins a prestigious award for high-quality reporting.

Back

The largest sports news website starts offering free subscriptions.

Front

With a given amount of resources, a country with a comparative advantage will produce a product with —

Back

lower opportunity costs

Front

One way the United States could increase exports of sports cars would be to —

Back

negotiate to lower tariffs on sports cars

Front

How do fluctuations to the international exchange rate of a nation's currency affect its balance of trade?

Back

If a country's exchange rate increases, the country can import goods less expensively.

Front

Which of the following is a basic characteristic of all economic systems? Price controls, Wage incentives, Small business owners, Distribution of goods and services

Back

Distribution of goods and services

Front

In comparison to the U.S. free enterprise system, the economy of China is characterized by a lack of —

Back

competition

Front

Which economist advocated for the increased role of government in the economy during times of economic instability?

Back

John Maynard Keynes