Economics- Review

Resources such as rivers, fish, trees and oil are______________________

• human resources

• capital resources

• natural resources

• goods

If a point lies on the curve this means the company/country/individual is being effcient. If a point lies inside the curve, what does that tell?

• They are being over efficient

• This is inefficient, or unproductive.

• It is impossible with the given resources

• They are still efficient, just at another point

What does point B represent?

• Production at greater than the country's minimum potential

• Production is less than the country's minimum potential

• Production is greater than the country's maximum potential

• Production at the country's maximum potential

In college people can major in a wide variety of fields including medicine, journalism, business and design among others. This is an example of the concept of

• scarcity

• specialization

• elastic demand

• progressive taxation

If the demand for a good increases when people's incomes increase

• the good is an inferior good

• the law of demand is violated

• the good's demand curve must be upwardsloping

• the good is a normal good

What caused this to happen?

• Decrease in income

• Increase in Income

• Increase in price of substitute

• Decrease in price of complement

What caused this to happen?

• Price expected to rise next month

• Price expected to fall next month

• Increase in number of buyers

• Increase in income of buyers

Suppose there is a 8 percent increase in the price of good X and a resulting 8 percent decrease in the quantity of X demanded. Price elasticity of demand for X is

• 0

• 1

• 8

• 64

For a particular good, a 12 percent increase in price causes a 3 percent decrease in quantity demanded. Which of the following statements is most likely applicable to this good?

• There are many substitutes for this good

• The good is a necessity

• The market for the good is very small

• The good is a luxury product

The diagram represents a(n)

• increase in supply

• decrease in supply

• change in quantity supplied

• none of the above