Equilibrium Price and Opportunity Cost

Front

What is the definition of the economic term Opportunity Cost?

Back

the value of the next best alternative that is given up due to the choice you made 

Front

If the economy is initially at point W, then the opportunity cost of moving to point X is

Back

6 units of honey.

Front

What is the Opportunity Cost of moving from C to A? (Think in the terms of what do we have to forgo in the process.)

Back

60 newspapers

Front

Which of the following does Economics primarily study?
- how scarcity can be eliminated
- how firms manipulate prices
- how government influences resource allocation decisions
- the problem of scarce resources relative to human wants

Back

the problem of scarce resources relative to human wants

Front

The equilibrium price of a good occurs if the quantity of the good demanded equals the quantity of the good supplied.

Back

quantity of the good demanded equals the quantity of the good supplied

Front

What is the Equilibrium Price?

Back

The price at which the quantity of a good demanded by consumers equals the quantity supplied by producers.

Front

What does this graph show? Options: Shortage, Surplus, Supply Table, Equilibrium

Back

Surplus

Front

There is an increase in supply. This will cause the equilibrium price to ______ & the equilibrium quantity to ______.

Back

decrease; increase

Front

The equilibrium price of a good occurs if the quantity of the good demanded equals the quantity of the good supplied.

Back

quantity of the good demanded equals the quantity of the good supplied

Front

What is the purpose of expansionary fiscal policy?

Back

To stimulate economic growth and increase aggregate demand during a recession or economic downturn.