Midterm Review

The act of giving up one thing of value to gain another thing of value is called a/an

• Opportunity Cost

• Profit

• Marginal Cost

• Trade-off

Buying stocks, purchasing new equipment for a business, paying for employees training, and purchasing the latest ?computers for one’s office are all examples of

• Opportunity Costs

• Outputs

• Productivity

• Investments

Which of the following is an unintended side effect that either benefits or harms an uninvolved third party?

• Externality

• Public goods

• Private goods

• Investments

When wants exceed resources it is known as

• Economics

• Entrepreneurship

• Scarcity

• Productive resources

Higher prices and government regulation are both strategies for

• increasing consumption

• encouraging economic equity

• dealing with scarcity

• aiding entrepreneurship

One side effect of price ceilings is that they produce

• Equilibrium

• Shortages

• Surpluses

• Inflation

A business that manufactures ice-skates buy steel for their blades in a

• Product Market

• Resource Market

• Demand curve

• Elastic price variation

In a market economy, which of the following laws would one be MOST LIKELY to find ?implemented by the government?

• Laws that set the price of fruits and vegetables

• Laws instructing firms of how many workers to employ

• Laws requiring all property unsold after 90 days to be given to the government

• Laws preventing individuals from destroying the property of others

Trees, minerals, and the real estate on which a company builds its main manufacturing center are all

• Capital goods

• Capital investments

• Land Entrepreneurship

• Land

The price elasticity on demand measures

• The slope of a curve

• How often the price of a good changes

• The responsiveness to the quantity demanded to changes in price

• The responsiveness to changes in demand