5.01 Fundamental of Economics Concepts

Which situations would cause prices to rise?

• The corn crop is unusually large one summer
• Insects destroy a large cotton crop
• Animal rights activists march in front of a fur store
• A newspaper article describes poor service provided by a hotel

The desire for which item(s) would be considered a noneconomic want?

• a car
• nutritious food
• a walk
• new clothing

A local dealership purchased 100 blue pickup trucks, but has only been able to sell three in the past five months. Because of the low demand for these trucks, the dealer has been forced to lower the sticker prices, creating which type of market for blue pickup trucks?

• buyer's
• discount
• seller's
• automotive

Which is an external factor that affects market prices?

• location of items in store
• consumer buying power
• number of items in stock
• available credit terms

One factor that might limit the human resources available for certain jobs is a/an:

• organized training program
• appealing company image
• good safety record
• inadequate pay level

A farmer has 1,000 acres. He decides to plant apple trees on 800 acres and raise cows on the remaining 200 acres. If he wanted to raise more cows, he would have to reduce the amount of land allotted to growing apples. This is an example of:

• distribution
• opportunity cost
• efficiency
• utility

When prices increase, producers usually:

• increase demand
• decrease supply
• increase supply
• decrease profits

A killing frost destroys 80% of Florida's citrus. This will most likely create:

• pure competition
• a buyer's market
• a seller's market
• inelastic demand

Which is a reason that natural resources are considered limited?

• People lack training or skills needed to do a job
• Technology has advanced faster than training
• Some countries are unable to manufacture them
• The earth has certain boundaries

Which group of words best describes wants?

• limited, changing, and compensating
• unlimited, changing, and competing
• limited, unchanging, and competing
• unlimited, unchanging, and compensating