Economics Final Study Guide

If the curve shifts to the left, what most likely happened?

• The price of raw materials decreased

• Taxes decreased

• A technological advancement

• The price of input costs increased

A company wants to make trucks, sports cars, and SUVs but does not have the capability to produce all three types of vehicles. They decided to make only SUVs. What economic term is applied to trucks and sports cars?

• Monopoly

• Slowdown

• Opportunity cost

• Capital resource

Which of the following would likely cause an increase in demand for a good right now?

• Expectations that the price of the good may increase dramatically in the future

• A decrease in the popularity of the good

• A decrease in population

• A decrease in disposable income

How is a Command economy described in the context of economics?

• One in which prices are determined by supply and demand

• One in which a central authority/government decides what will be produced

• One in which individual profits are encouraged

• One in which all economic decisions are made by individuals in the private sector

Susie Smith is a celebrity who is famous for her fashion advice. She recently wore a scarf and spoke publicly about how much she liked it. What is likely to happen to the supply of that scarf and why?

• It depends what happens to the demand curve, if the demand curve moves to the left, supply will increase.

• It will increase, because as the demand for a product increases, the supply increases.

• The supply of the scarf will not be affected

• It will decrease, because the demand will rise and everyone will purchase it.

Sally works in a private company that has to follow government rules for public safety. What type of economy does this scenario best describe?

• Market

• Mixed

• Command

• Traditional

The basic economic problem that all individuals, businesses, and governments must solve is:

• Satisfying unlimited wants with limited resources

• Guaranteeing that everyone has a bank account

• Making sure that all resources are used

• Updating jobs to take advantage of the newest technology

In a Market economy, which of the following groups has the most influence in determining what goods and services are produced and offered?

• Scientists

• Consumers

• Factory workers

• Government

Which type of cost occurs when an individual pays for a piano lesson instead of going to a movie?

• Marginal cost

• Opportunity cost

• Music cost

• Fixed cost

Characteristics shared by monopolistically competitive markets and perfectly competitive markets include:

• a. differentiated products

• b. advertising

• c. many sellers

• d. brand identity