Honors Econ Semester Exam

Front

Scarcity arises because all societies have: Limited resources to satisfy unlimited wants, Limited needs and unlimited wants, Unlimited resources to satisfy limited wants, Unlimited needs and limited wants

Back

Limited resources to satisfy unlimited wants

Front

What does the Law of Supply state? Options: Producers will increase supply as prices rise, Producers will decrease supply as prices rise, Consumers will increase demand as prices rise, Consumers will decrease demand as prices rise

Back

Producers will increase supply as prices rise

Front

Which of the following is NOT a determinant of supply? Technology, Consumer preferences, Number of producers, Wage rates

Back

Consumer preferences

Front

According to the Law of Demand, what happens when prices decrease?

Back

Demand increases

Front

What is the Income Effect?

Back

The change in quantity demanded due to a change in income.

Front

Which of the following best describes elasticity? Options: The responsiveness of demand to price changes, The fixed nature of supply regardless of price, The stability of prices in a market, The total quantity of goods produced

Back

The responsiveness of demand to price changes

Front

What is the substitution effect?

Back

The change in quantity demanded due to the availability of substitutes.

Front

What does the equilibrium price represent?

Back

The price at which supply equals demand.

Front

What is disequilibrium?

Back

When there is a surplus or shortage in the market

Front

Which sector is NOT part of the circular flow of money? Options: Product market, Consumers, Foreign sector, Factor market

Back

Foreign sector