Economics Final

The statement "the quantity demanded of a product varies inversely with its price" is a definition of

• laissez-faire.
• the law of demand.
• the invisible hand
• the law of competition.

In a command economy, how is it determined what goods and services will be produced?

• Businesses decide what to produce on the basis of market conditions
• Consumers decide through their behavior in the marketplace.
• Central government planning decides what will be produced.
• Supply and demand control production and price.

If the supply of computer engineers increases at the same time that the demand for these workers decreases, what would be the MOST LIKELY effect on wages for these workers?

• Wages would stay the same as job opportunities increase.
• Wages would increase as the number of workers increases.
• Wages would decline as the competition for jobs increases.
• Wages would increase as competition for these workers increases.

If OPEC decided to cut oil production for the coming year, what would be the MOST LIKELY effect?

• prices would not change
• oil prices would probably rise
• oil prices would probably decline
• the price for substitute products would decline

Under which economic system would factors of production MOST LIKELY be owned by the government?

• mixed economy
• natural economy
• market economy
• command economy

A new technology increases the speed of computers without increasing production costs. What is the MOST LIKELY effect of this technology?

• The price of new computers will decline.
• The price of new computers will increase.
• The demand for new computers will decline.
• The demand for new computers will increase.

The basic economic condition that exists when unlimited wants exceed limited productive resources is called

• capital.
• scarcity.
• hyper inflation.
• opportunity cost.

Jose is applying for an automobile loan. The lender considers Jose creditworthy MOST LIKELY because Jose

• has a new job.
• has a home mortgage loan.
• has many credit cards already.
• has made on-time payments to other loans.

 Scarcity is the basic economic condition that results from society not having enough resources to produce all the things people would like to have. A society's economic system determines

• the way a society organizes its political system.
• the way a society aligns technology with scientific goals.
  
• the way a society allocates its scarce resources to produce goods and services.
  
• the way a society uses religious resources to supplement economic goods and services.

When the allocation of goods and services by a modern mixed economy is not efficient

• market powers can block beneficial gains.
• monopolies can work to redistribute market equity.
  
• governments may step in to resolve the market failure.
  
• individuals of the markets can share equitable results