Econ Review

Which of the following best describes a normal good?

• Personal car
• Taxi
• Subway
• Bus

Which of the following best describes an inferior good?

• Bottled Water
• Tap Water
• Sparkling Water
• Flavored Water

Which term is not a determination businesses use to decide what factors of production to use?

• Scarcity
• Opportunity Cost
• Productivity
• Surplus

A change in price for a product causes a change in quantity demanded for that product. (movement)

• True

• False

Which of the following is the most elastic?

• Air Conditioning

• Electricity

• Satellite TV

• Water

What happens to an elastic good when there is a price change?

• Large change in quantity demanded

• Small change in quantity demanded

• Large change in demand

• Small change in demand

Inflation is detrimental to which of the following rates? (nominal - inflation)

• Mortgage
• Credit Card
• Student Loan
• Savings

When there is an introduction of new technology, it typically causes:

• An increase in supply
• An increase in quantity supplied
• A decrease in supply
• An decrease in quantity supplied

Deflation negatively impacts consumer loan rates. (nominal - inflation)

• True
• False

Which scenario does not increase supply?

• Subsidies
• Technology
• # of Suppliers increase
• Resource costs increase