ECO EOC REVIEW

Front

Consumers waiting in long lines for a new product is an example of

Back

scarcity.

Front

The efficient use of scarce resources leads to an increase in

Back

productivity.

Front

When a business needs to decide whether a certain action is worth the cost, the most helpful analysis would be a(n)

Back

cost-benefit analysis.

Front

How are economic decisions made in a traditional economy?

Back

The customs of elders and ancestors dictate how the economy functions.

Front

Which of the following is largely responsible for the growth of a free enterprise system?
Options: government, profit motive, Gross Domestic Product, market efficiency

Back

profit motive

Front

Changes in quantity demanded and changes in price have a(n) _____ relationship.

Back

inverse

Front

A hungry man is willing to pay a high price for food. After he is no longer hungry, he is not willing to pay the same high price. Which of the following best defines this example?

Back

diminishing marginal utility

Front

What is the income effect?

Back

a change in quantity demanded caused by a change in consumer income

Front

Which term denotes the change in total income when one additional unit of output is added?

Back

marginal revenue

Front

Which term is generally associated with machines and other capital goods? Options: total cost, fixed cost, variable cost, marginal cost

Back

fixed cost