Economics Final Exam Review

Front

What is considered to be the primary factor of production? Options: Labor, Capital, Land, Technology, Entrepreneurship

Back

Land

Front

In this type of economy businesses and property are owned privately in attempt to make a profit.

Back

capitalist

Front

The law of demand states that the quantity demanded and the price move in ________ direction(s).

Back

opposite

Front

True or False: As the price of a new television goes down, the demand for it also goes down.

Back

False

Front

Economic rule stating that individuals cannot keep buying the same quantity of a product if its price rises while their income stays the same

Back

real income effect

Front

Rule stating that the additional satisfaction a consumer gets from purchasing one or more unit of a product will lessen with each additional unit purchased

Back

law of diminishing marginal utility

Front

Economic rule stating that the price and quantity supplied move in the same direction.

Back

Law of supply

Front

True or False: As the price rises, the quantity supplied also rises.

Back

True

Front

True or False: Higher price of inputs means a lower quantity supplied.

Back

True

Front

Equilibrium is the point at which quantity supplied is equal to the quantity demanded.

Back

True