Unit 1 Fundamentals of Economics Test Review

Front

Ban on all or nearly all trade

Back

Embargo

Front

Taxes on Imports

Back

Tariff

Front

Value based or physical limit on how much can be imported

Back

Quota

Front

Financial assistance to an industry or company by the government

Back

Subsidy

Front

Regulations on testing, quality, classification, and labeling of imported goods and services

Back

Standard

Front

The definition of the law of diminishing marginal utility

Back

As more units are consumed the marginal utility falls.

Front

What is the additional cost incurred to produce one more unit?

Back

Marginal Cost

Front

The first four dinner rolls Joan consumes have total utility of 15, 27, 37, and 45 respectively. What is the marginal utility of the 4th dinner roll?

Back

8 units of utility

Front

What best reflects the goal of a consumer?

Back

To maximize their marginal benefit

Front

You made a rational decision if:

Back

Marginal benefit is greater than marginal cost