E/PF Midterm Review

Scarcity refers to…

• Unlimited number of jobs available
• Need for consumers to find unlimited resources
• Limited resources and unlimited wants/needs
• Unlimited supply of resources available

The items used to produce goods and services (also called factors of production) are known as…

• Resources
• Stocks
• Bonds
• Mutual Funds

The amount of output (goods and services) produced per unit of input (productive resources) used is  considered

• Specialization
• Productivity
• Output
• Division of Labor

WhWhich of the following would cause the demand for gasoline to shift to the right (increase demand)?at is profit?

• Total Revenue + Total Profit
• Total Revenue – Total Production Costs
• Total Production – Total Revenue
• Total Money + Investments
  1.Total Money + Investments

Which of the following would cause the demand for gasoline to shift to the right (increase demand)?

• an increase in the price of automobiles by $1,000
• the price of gasoline increases by $.50 per gallon
• buyers buy more SUV's that are larger and use fewer miles per gallon
• for health reasons, people start riding bicycles more

Supply depends on the willingness and ability of

• donors to contribute
• producers to produce
• advertisers to promote
• consumers to purchase

Suppose that there is an increase in input prices. We would expect

• supply to increase
• supply to decrease
• supply could increase or decrease
• supply to remain unchanged

When the price is higher than the equilibrium price...

• shortage will exist
• buyers desire to purchase more than is produced
• sellers desire to produce and sell more than buyers with to produce
• quantity demanded equals quantity supplied

Wheat is the main input in the production of flour. If the price of wheat increases, all else being equal, we would expect...

• the supply of flour to be unaffected
• the supply of flour to decrease
• the supply of flour to increase
• the demand for flour to increase

A market in which a large number of relatively small firms produce and sell identical products and in which there are no significant barriers to entry into or exit from the industry is what type of market structure?

• oligopoly
• monopoly
• perfect competition
• monopolistic competition