Econ. Ch 5 Exam

Front

Which statement describes entrepreneurs? Options: They do not use productive resources. They produce goods and services. They always make a profit. They rarely take risks.

Back

They produce goods and services.

Front

Economics is a _______ science.

Back

social

Front

Value is a measure of…

Back

what a person is willing to give up to acquire something.

Front

What law states that the additional benefit you get from each additional unit of something during a given time period will tend to decline as each unit is used?

Back

The law of diminishing marginal utility

Front

According to basic economic reasoning nothing is free.

Back

True

Front

This diagram is used by economists to illustrate the impact of scarcity. It is a…

Back

The production possibilities curve

Front

If the demand for in-line skates falls suddenly because of news reports about injuries to skaters, what happens to the equilibrium price?

Back

It moves to a lower point on the supply curve as the demand curve shifts left.

Front

Pork and beef are examples of…

Back

none of these

Front

The chainsaw represents which factor of production?

Back

Capital

Front

In the circular flow model, who spends money in the resource market?

Back

Business firms