Economics Review

People often answer the questions of "What to produce" and "How to produce" based on the availability of:

• push factors

• cultural diffusion

• resources

• multiple perspectives

A country that specializes must ________________ to obtain goods and services they want but do not or cannot produce.

• barter

• gather

• migrate

• trade

What might happen if the demand for a new type of XBOX began rising quickly?

• The manufacturer would begin making fewer new XBOXs

• Microsoft would raise the price of the new XBOXs

• Microsoft would stop selling the new XBOX

• Microsoft would lower the price of the new XBOX

Which of these is neither a good nor a service?

• A gallon of gasoline

• A guitar lesson

• A meal at a restaurant

• A $100 bill

Why do prices go down when consumers start saving their money?

• Consumers become less willing to spend money on goods and services

• Manufacturers start producing fewer products

• Demand for currency goes up as people begin saving

• Demand for goods begins to outpace supply

Which condition would lead to the highest prices?

• Low supply, high demand

• High supply, high demand

• High supply, low demand

• Low supply, low demand

What is the main reason for global trade?

• Different countries have varying levels of income.

• Different countries have different geographic locations.

• Different countries specialize in producing different products.

• The countries around the world are united under one government system.

In a market, price is determine by the interaction of:

• inputs and outputs

• supply and demand

• push and pull factors

• demand and means on distribution

If demand for a product increases beyond the ability of produces to supply the product, what will happen to the price of the product?

• the price will increase

• the price will decrease

• the prices will stay the same

• the price will decrease until producers can make more

What might happen if the demand for a new type of sneaker began rising quickly?

• The manufacturer would begin making fewer sneakers

• The sneaker company would raise the price of the sneakers

• People would refuse to pay more money for the sneakers

• The sneaker company would lower the price of the sneakers