Semester 1 Test

Front

Which economic system relies on customs and traditions to make economic decisions?

Back

Traditional economy

Front

What is the primary goal of a market economy?

Back

To allocate resources efficiently through supply and demand

Front

What does the law of supply state?

Back

As the price of a good increases, the quantity supplied increases.

Front

How does education typically affect earning potential?

Back

Higher education usually leads to higher earning potential.

Front

What is the substitution effect in the context of the law of demand?

Back

Consumers replace a more expensive item with a cheaper alternative.

Front

What is market equilibrium?

Back

The point where supply equals demand

Front

Which market structure is characterized by a single seller?

Back

Monopoly

Front

Which of the following is a feature of a mixed economy? Complete government control, No government intervention, Combination of private and public sector involvement, Only private sector involvement

Back

Combination of private and public sector involvement

Front

How does a higher level of education typically affect unemployment rates?

Back

Higher education leads to lower unemployment rates.

Front

What happens to the supply curve when there is an improvement in technology?

Back

It shifts to the right