PFET-Unit I Review

Which of these is neither a good or service?

• A gallon of gasoline

• A piano lesson

• A meal at a restaurant

• A $20 bill

When the demand curve increases, it will

• shift to the left

• shift to the right

• flatten out and become horizontal

• not change

An example of microeconomics

• Choosing to have products made in the US

• Choosing to wear tennis shoes or dress shoes

• Choosing to eat Chik Fil A or Burger King

• Choosing to paint your room red or blue

The advantages of a traditional economic system is

• Economic roles are set and predictable

• lower standard of living

• changes every day

• the government is involved

In general, if the price of a good or service goes down, what happens to the demand for that good or service?

• demand goes up

• demand stays the same

• demand goes down

• none of the above

Amazon Prime is selling Smellcils. There are only a few packs left and they are very popular. What will happen to the price?

• The price will go up.

• The price will go down.

What does a business have left after all the bills have been paid?

• supplies

• taxes

• profit

• debt

What is the best description for equilibrium?

• When demand is less than supply

• When demand is greater than supply

• When demand equals supply

• When cost equals price

The desire or willingness a consumer has to purchase a good or a service is called?

• shortage

• supply

• price

• demand

When the demand for a product or service is higher than the supply this causes what?

• Shortage

• Consumer

• surplus

• Equilibrium