Economic Terms (#18-34)

Which of the following will cause an increase in demand for snowboards?

• More costly production methods 
• A decrease in the price of lift tickets at resorts in Colorado 
• A decrease in consumer income   
• A decrease in the population 

Which of the following would not affect the supply of peanut butter?

• The price of peanuts 
• The wages of peanut butter factory workers 
• The income of peanut butter consumers
• Existing peanut butter making technology

What does a “surplus” (extra amount) of goods in a market imply?

• Prices are too high
• Prices are too low
• Supply is too low
• Demand is too high

Due to a disappointing economy, Americans are cutting back on the family vacation road trips. What happens to the market for gasoline?

• Demand for gasoline will decrease 
• Demand for gasoline will increase
• Demand for gasoline will stay the same

Costs of producing gasoline has increased due to rising energy costs. What happens to the market for gasoline?

• Supply of gasoline will decrease 
• Supply of gasoline will increase
• Supply of gasoline will stay the same

When inflation occurs...

• Price decreases in the economy
• The purchasing power of money decreases in the economy
• The dollar appreciates on foreign exchange markets
• Basic necessities become cheaper

Comparing the cost of two markets baskets of goods allows an economist to determine

• The Producer Price Index
• The Consumer Price Index
• The current direction of GDP
• How much unemployment is in the economy

If one wanted to know whether there had been inflation or not, the BEST measure to observe would be the

• GDP
• Business cycle
• CPI
• National Dept

During a recession, which of the following is likely to occur?

• an increase in real wages
• an increase in production
• and increase in the GDP growth rate
• an increase in the unemployment rate

A _______ is an example of labor.

• printing press
• machine on an assembly line
• dentist
• cow