Economic Principles and Market Dynamics

Front

Without government intervention, how is the market for gasoline in this community likely to be affected after an earthquake?

Back

The price of gasoline will increase as it will become harder to find.

Front

Without government intervention, how is the market for water in this community likely to be affected after an earthquake?

Back

The price of water will increase as it will become harder to find.

Front

If a country that was previously producing at point C is now producing at point D, what explains the movement?

Back

Shifted some resources from the production of food to the production of clothes.

Front

How can a country achieve point F on a production possibilities curve?

Back

Through Trade

Front

What economic principle is described by the idea that when two countries trade freely, they both gain because they receive goods cheaper or better than they could produce themselves?

Back

Comparative advantage

Front

In economics, what is the opportunity cost of producing goods?

Back

Forfeited production of another good

Front

The basic problem of economics, where available resources will never be enough to satisfy all human needs and wants, leads to which outcome?

Back

Scarcity requires people to make choices.

Front

Why must all economic systems answer the questions of what goods should be produced, how they should be produced, and for whom they should be produced?

Back

There are unlimited wants and limited resources.

Front

What is Market Risk?

Back

Uncertainty in future market values and potential loss

Front

What may increase the risk in the market? Options: Change in economic conditions, Lowering trade barriers, Increment in company earnings, Emerging technology

Back

Change in economic conditions