POBF 5.01-5.03 Economics

Which change provides the most time utility for a consumer?

• staying open for business on the weekend

• arriving at a product trade show early

• shopping for a product in the morning

• asking for early delivery of a product

Which situations would cause prices to rise?

• The corn crop is unusually large one summer.

• Insects destroy a large cotton crop.

• Animal rights activists march in front of a fur store.

• A newspaper article describes poor service provided by a hotel.

When prices increase, producers usually:

• increase demand.

• decrease supply.

• increase supply.

• decrease profits.

Which is a natural resource that can be renewed through people's efforts?

• Water

• Crude oil

• Trees

• Mineral deposits

Equilibrium price of a good or service is determined by trial and error and exists when:

• research shows what the market will tolerate.

• the amount supplied is equal to the amount demanded.

• businesses total their costs and markup.

• businesses compute the average selling price in the area.

A local dealership purchased 100 blue pickup trucks, but has only been able to sell three in the past five months. Because of the low demand for these trucks, the dealer has been forced to lower the sticker prices, creating which type of market for blue pickup trucks?

• buyer’s

• discount

• seller’s

• automotive

A killing frost destroys 80% of Florida's citrus crop. This will most likely create:

• pure competition.

• a buyer's market.

• a seller's market.

• inelastic demand.

The desire for which item(s) would be considered a noneconomic want?

• a car

• nutritious food

• a walk

• new clothing

A business that begins selling winter holiday decorations in late autumn is creating what type of utility?

• time

• place

• form

• possession

Which occurs when the supply of individuals who are able and willing to work diminishes?

• Capital goods become unlimited.

• Capital goods become limited.

• Human resources become limited.

• Human resources become unlimited.