2024 Fall General EPF Final Exam

Front

Why study economics?

Back

Helps analyze the impact of decisions and strengthen decision making

Front

Imagine you're starting a bakery. What are the four categories of resources you'll need to produce bread and cakes?

Back

Land, Labor, Capital, Entrepreneurship

Front

In the construction of a new skyscraper, what does 'Labor' refer to in the context of factors of production?

Back

Human capital (workers)

Front

How is the "Opportunity Cost" of spending $100 on a video game instead of saving for a concert described?

Back

Your next best choice

Front

What happens to the utility as additional units of a product are consumed, according to the concept of Diminishing Marginal Utility?

Back

It declines.

Front

What happens to the equilibrium price when there is an increase in demand while supply remains constant?

Back

It increases

Front

As the supply decreases with demand remaining constant, what happens to the price?

Back

The price increases

Front

What does it mean if demand is price inelastic?

Back

A change in price causes a smaller percentage change in demand.

Front

What is Market Price/Equilibrium?

Back

The point at which quantity supplied equals quantity demanded.

Front

What does a surplus in the market indicate?

Back

Quantity supplied exceeds quantity demanded.