Economics Final Exam 2021

Microeconomics is the study of

• large corporations.

• households.

• individual consumers.

• all of the above.

Food, clothing, and shelter are examples of human

• wants.

• needs.

• resources.

• factors of production.

Which of the following could be a resource?

• trees

• sunlight

• bicycles

• all of the above

The economic system in which the basic economic questions are answered by government planners is called a

• market economy.

• command economy.

• mixed economy.

• traditional economy.

The command economic system that operated in Western Europe during the Middle Ages is called

• capitalism.

• communism.

• manorialism.

• socialism.

In his book An Inquiry into the Nature and Causes of the Wealth of Nations, Adam Smith explained how

• governments can encourage economic growth.

• self-interest hurts the economy.

• capitalism succeeded and communism failed.

• markets regulate economic activity.

Of what kind of economy is Cuba an example?

• free enterprise.

• democratic socialism.

• authoritarian socialism.

• capitalism.

The tendency of consumers to replace a relatively more expensive product with a similar, lower-priced

product is called the

• income effect.

• marginal effect.

• substitution effect.

• demand effect.

A demand curve is only a “snapshot” of a market because it

• represents a long period of time.

• contains only quantities that consumers are willing to buy.

• contains only quantities that consumers are able to buy.

• represents a specific time period.

Nonprice determinants of demand include

• consumer tastes and preferences.

• consumer expectations.

• prices of related goods.

• all of the above.