Economics EOC Review

When each worker learns one task very well, this is ____________________. 

• division of labor
• human capital
• labor cost
• specialization

Using resources more efficiently increases ____________________________. 

• productivity
• capital
• income
• investment

A person's quality of life is most determined by ___________________. 

• marriage
• food
• standard of living
• love

Equilibrium price is the price at which the quantity of a product demanded by consumers and the quantity supplied by producers ______________________. 

• are different.
• are equal.
• is higher for the product demanded.
• is higher for the product supplied.

On the market demand and supply graph, the point  equilibrium always happens 

• at the highest point on the demand curve.
• where the demand and supply curves intersect.
• at the lowest point of the supply curve.
• at the center point of the graph, irrespective of the curves.

When there is a shortage, producers raise prices in an attempt to

• separate the quantity supplied and demanded.
• raise the quantity demanded.
• equalize the quantity supplied and demanded.
• lower the quantity supplied.

A surplus happens when

• prices are too low relative to consumer demand.
• prices are too high relative to consumer demand.
• prices are too low relative to producer demand
• prices are too high relative to producer demand.

Which of the following best describes the Law of Demand?

• As price goes down, demand goes down. (and vice versa).
• As price goes down, demand goes up (and vice versa).
• As demand goes down, supply goes up.
• As demand goes up, price becomes elastic.

What is inflation?

• rise in all prices
• rise in most prices
• rise in some prices
• rise in general prices

What is a decrease in the general level of prices?

• CPI
• Deflation
• Inflation
• stagflation