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Economics Final Exam Review June 2024 Key.docx.pdf Flashcards
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Economics Final Exam Review June 2024 Key.docx.pdf Flashcards
Economics Final Exam Review June 2024 Key.docx.pdf Flashcards
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1
Question
What is Economics?
Answer
Economics is the study of how we satisfy unlimited wants with scarce resources.
2
Question
Who are consumers represented by?
Answer
Consumers are represented by the demand curve.
3
Question
What is Physical Capital?
Answer
Physical Capital refers to goods, equipment, or machinery purchased by a business.
4
Question
Define Efficiency.
Answer
Efficiency is the act of producing products with the lowest costs.
5
Question
What is Barter trade?
Answer
Barter trade is the act of trading one product directly for another without using money.
6
Question
What is Scarcity in economics?
Answer
Scarcity is the fundamental economic problem that implies we cannot have everything we want.
7
Question
Define Opportunity Cost.
Answer
Opportunity cost is what is given up by not choosing the next best alternative.
8
Question
What are the Factors of Production?
Answer
Factors of Production include land, labor, capital, and entrepreneurs.
9
Question
Who are Entrepreneurs in the economic context?
Answer
Entrepreneurs are business owners who take risks to start a business.
10
Question
What does the Production Possibilities Curve illustrate?
Answer
The Production Possibilities Curve illustrates the fundamental limits of production.
11
Question
What are Economic Systems?
Answer
Economic Systems refer to society's way of answering the three economic questions.
12
Question
What is a Traditional Economic System?
Answer
A Traditional economic system is a system where economic choices are made based on ritual, custom, and habit.
13
Question
Describe a Market Economic System.
Answer
A Market economic system is a system where economic decisions are made using supply and demand.
14
Question
Explain a Command Economic System.
Answer
A Command economic system is a system where the government answers the three economic questions.
15
Question
What are the Three Key Economic Questions?
Answer
The Three Key Economic Questions are what, how, and for whom.
16
Question
Define Demand in economics.
Answer
Demand refers to the desire and ability of consumers to buy goods/services at various prices.
17
Question
State the Law of Demand.
Answer
The Law of Demand states that quantity demanded varies inversely with price.
18
Question
What does a Demand curve illustrate?
Answer
A Demand curve is a graphical illustration of quantity demanded at a series of prices.
19
Question
What does a Change in demand indicate?
Answer
A Change in demand means consumers will buy more or less of a good at all possible prices.
20
Question
How does Change in Consumer Income affect demand?
Answer
Change in Consumer Income changes demand because people have more or less money.
21
Question
Provide an example of Complementary goods.
Answer
Complementary goods are like hot dogs and hot dog buns.
22
Question
When does a Change in quantity demanded occur?
Answer
A Change in quantity demanded occurs because of a change in price for the product being considered.
23
Question
What is Supply in economics?
Answer
Supply refers to what producers are willing and able to offer for sale at various prices.
24
Question
Explain the Law of Supply.
Answer
The Law of Supply states that price and quantity supplied vary directly with one another.
25
Question
What does a Supply curve indicate?
Answer
A Supply curve will shift when there is a change in the number of producers.
26
Question
When does a Change in quantity supplied occur?
Answer
Change in quantity supplied is the only change on the supply curve when there is a change in price.
27
Question
Define Equilibrium Point or Market Clearing Price.
Answer
The Equilibrium Point or Market Clearing Price is the intersecting point of the supply and demand curves.
28
Question
What does Demand Elasticity measure?
Answer
Demand Elasticity measures how sensitive consumers are to changes in product price.
29
Question
What is the 1890 Sherman Antitrust Act?
Answer
The 1890 Sherman Antitrust Act is an antimonopoly law passed to stop monopolies from acting in restraint of trade.
30
Question
Define Monopoly in the economic context.
Answer
Monopoly refers to a one-firm industry.