Parcial 1 Comercio Internacional

What does the law of demand state?

• As price increases, quantity demanded increases.

• As price increases, quantity demanded decreases.

• As price decreases, quantity demanded decreases.

• As price decreases, quantity demanded increases.

What is the law of supply?

• As price increases, quantity supplied decreases.

• As price decreases, quantity supplied decreases.

• As price increases, quantity supplied increases.

• As price decreases, quantity supplied increases.

In a market economy, prices are primarily determined by:

• The government

• Producers

• The invisible hand

• Consumers

How is the price for a good or service determined in a market economy?

• By government regulations

• By producers setting a fixed price

• Through the interaction of supply and demand

• By consumers voting on prices

Who coined the term "the invisible hand" to describe how self-interest and competition can lead to positive outcomes in a market economy?

• Karl Marx

• Adam Smith

• John Maynard Keynes

• John Locke

According to the concept of the invisible hand, what guides individuals and businesses to make choices that benefit society as a whole?

• Government regulations

• Self-interest

• Charitable donations

• Random chance

What is Economics?: Economics is often defined as the study of:

• Money

• Scarcity and choice

• History

• Politics

Which of the following is NOT a fundamental economic question?

• What to produce?

• How to produce?

• When to produce?

• For whom to produce?

The economic role of a consumer is primarily focused on:

• Producing goods and services

• Maximizing profits

• Consuming goods and services

• Setting prices

What is the term for the total satisfaction or pleasure a consumer derives from consuming a good or service?

• Marginal cost

• Utility

• Price elasticity

• Inflation