Economics Final Exam

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The term for the value of the next best alternative in an economic decision is

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opportunity cost

Front

An outward shift in a production possibilities curve could be caused by: fewer resources available, growth of resources, underutilization, efficiency.

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growth of resources

Front

Private property rights represent what important goal/s in a market economy?

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freedom and security

Front

The United States has

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a modified (mixed) capitalist economy

Front

Consumers of the factor markets are

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businesses

Front

The popularity of MP3 players led many broadcasters to begin offering podcasts of popular programs. Which factor that affects demand does this example illustrate?

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complements

Front

Which of these signals and incentives do shortages provide? Options: It is a good time for consumers to buy as prices fall, It is a good time for producers to raise prices, It is time for producers to raise prices, Prices are too high relative to consumer demand

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It is a good time for producers to raise prices

Front

Which is a result of rent control? Options: More new affordable housing is built, The quality of housing improves, Tenants are forced to move frequently, There is a persistent shortage of housing

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There is a persistent shortage of housing

Front

Producers are willing to sell more goods and services at higher than at lower prices. Which law does this statement reflect?

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supply

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If the price of apples falls from $2 per pound to $1 per pound, the Jones family brings half as many pounds to sell at the farmer's market. This example shows a change in

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quantity supplied