Economics Flashcard

Front

What is the study of economics?

Back

The study of resource allocation

Front

For any combinations of goods and services, what is needed in order for a producer to shift its Production Possibilities Frontier outward?

Back

Technological advancement

Front

If a society wants to shift its Production Possibilities Frontier outward, what type of goods should the society put more of its resources toward? Options: Consumer goods, Capital goods, Luxury goods, Imported goods

Back

Capital goods

Front

Which of the following factors would cause the demand curve for a product to shift to the right?
Options:
Decrease in consumer income,
Increase in consumer preferences,
Increase in the price of substitutes,
Decrease in population

Back

Increase in consumer preferences

Front

What will cause movement along a demand curve?

Back

Change in the price of the product

Front

Which of the following factors would cause the supply curve for a product to shift to the right?
Options:
Increase in production costs,
Technological improvements,
Increase in taxes,
Decrease in the number of suppliers

Back

Technological improvements

Front

If a producer’s PPF shifts outward, will that be reflected as a shift out of their supply curve or demand curve?

Back

Supply curve

Front

Graphically, what must be true if a large increase in demand for a product caused no change in the price of the product?

Back

Demand is perfectly inelastic

Front

What happens when we have a surplus for a product?

Back

Prices decrease

Front

What happens when we have a shortage for a product?

Back

Prices increase