Economics Unit 2 Test

______________ is the power of a good or service to command other goods or services in voluntary exchange.

• Supply

• Demand

• Value

• Equilibrium

The amount of a good available in a market is ______________.

• Supply

• Demand

• Value

• Equilibrium

The desire by consumers to buy a specific good is _______________________.

• Supply

• Demand

• Equilibrium

• Value

A ____________ is if the supply of something is high but the demand is low then the price drops.

• Surplus

• Shortage

If the supply of something is low but the demand is high then the price rises is known as a ___________________

• Surplus

• Shortage

A state in a market where supply and demand are equal is known as a(n) ___________________.

• Scarcity

• Shortage

• Equilibrium

• Surplus

The factors of production according to Karl Marx are:

• Land, Labor, and Capital

• Land, Labor, Capital, and Entrepreneurship

• Scarcity and Opportunity Cost

• Labor, Capital, and Entrepreneurship

___________________ is the study of how consumers, workers, and firms interact to generate outcomes in specific markets.

• Macroeconomics

• Microeconomics

• Economics

• Equilibrium

Division of Labor is:

• The ability of one group to carry out an economic activity more efficiently than another.

• An economic model showing how much possible things a country can create to maximize efficiency

• An era of progress when previous farm based societies became factory based.

• The assignment of different parts of manufacturing to different people.

Adam Smith was Known as the _______________

• First Economist

• Inventor of Communism

• Theorist of divisions of labor

• The first official pope of the Irish