Civics Unit 7 Test Review

Scarcity is a problem because...

• All expensive goods cannot be shared equally

• All resources are limited, but wants are not

• Nations must spend money for resources they do not have

• People face shortages on a seasonal basis

Who makes economic decisions in the US?

• Citizens

• Federal Government

• Business owners & consumers

• Citizens & Government

Coke over Chips is...

• Scarcity

• Marginal Cost

• A Trade Off

• Total Cost

Loss of income because you decided to take the day off is...

• Marginal Cost

• Opportunity Cost

• Total Cost

• Fixed Cost

Fixed Cost?

• Rent

• Money spent on supplies

• Electric Bill

• Inventory

Regulates the economic market and influences price...

• Antitrust Policy

• Supply and Demand

• Substitution and Consumption

• Monetary Policy

Law of Demand?

• The higher the price, the more people will want the good.

• Everyone has a limited income that they will spend.

• When a good's price is lower, people will buy more of it.

• Services are of interest in the same way that goods are.

Why would supply of a product decrease?

• A decrease in consumer demand

• A decrease in the price of resources used to make the product

• An increase in the number of consumers

• An increase in the number of suppliers

Buyers want more than sellers will sell..

• Supply and Demand

• Excess demand

• Equilibrium

• Price Floor

Price of soda rose from $1 to $2. What will be the effect?

• The demand curve for Soda will move right

• The quantity demanded of Soda will increase

• There will be a shortage of Soda

• The quantity demanded of Soda will decrease