Unit Seven Review

A new study has shown that avocados are extremely healthy. The demand for avocados has increased due to a change in

• change in population

• price of a substitute good

• price of a complementary good

• tastes and preferences (popularity)

An decrease in demand for iPhones in Hong Kong could be caused by a(n)

• increase in price for Samsung Galaxy

• increase in population in Hong Kong

• the price for iPhones is expected to increase next week

• the price of iPhone apps increased

Consider the market for SUVs. If the price of gasoline increases then the Demand for these vehicles will

• increase
• decrease
• not be affected

The law of demand states that as the price increases then 

• quantity demanded increases
• quantity demanded decreases
• demand increases
• demand decreases

The diagram represents a

• increase in demand
• decrease in demand
• change in quantity demand
• none of the above

Which of the factors of production is this?

• capital

• entrepreneur

• land

• labor

Which one of the factors of production is this?

• capital

• entrepreneur

• land

• labor

Iron Ore

• Land

• Labor

• Capital

• Entrepreneurship

Producers and consumers determine how to use resources and make goods based on supply and demand in the market, without government interference.

• Market Economy

• Traditional Economy

• Command Economy

• Mixed Economy

Sam loves science and wants to become a doctor but he is learning how to make clay bricks like his father and grandfather. This is an example of which economic system?

• Market Economy

• Traditional Economy

• Mixed Economy

• Command Economy