ECONOMICS FINAL EXAM Spring 2024

Front

Thousands of people leave a small town due to a factory closing down. Sales at the local grocery store are reduced. What causes this change?

Back

Change in the number of buyers

Front

Which statement expresses a central idea of how the laws of supply and demand work? Options: The government sets the prices for goods and services. Prices are determined by the interaction of producers and consumers. Consumers alone determine the prices for goods and services. Technology dictates the prices charged for goods and services.

Back

Prices are determined by the interaction of producers and consumers.

Front

Which situation is most likely to lead to the lowest prices? Options: There is only one producer making the good., Businesses secretly agree to share their profits., Competition between businesses is prohibited., Several producers compete to sell goods to the public.

Back

Several producers compete to sell goods to the public.

Front

When companies compete in a market economy, what is usually the result?

Back

Consumers are able to buy goods for the best available price.

Front

Refer to Graph 4-1. The movement from point A to point B on the graph shows

Back

an increase in quantity demanded.

Front

What does the Latin phrase Ceteris paribus literally mean?

Back

all things being held constant.

Front

According to Graph 4-5, what occurs at a price of $7?

Back

there would be a surplus of 40 units.

Front

The willingness and ability of a producer to make a product is referred to as

Back

supply

Front

A hurricane wipes out an orange crop in Florida, sharply affecting the supply of oranges. Which chart demonstrates this concept?

Back

Front

Which of the following are factors of production?
technology and productivity,
capital and land,
scarcity and shortage,
economics and business decisions

Back

capital and land