Economics FE

What would happen to the market for iPhones if the price of memory chips (used to manufacture phones) increases? [pick two answers]

• The price of iPhones would decrease

• The price of iPhones would increase

• The quantity of iPhones would decrease

• The quantity of iPhones would increase.

What would happen to the market for iPhones if the US Government announces new tariffs (taxes) on all products manufactured in China (assume all iPhones are manufactured in China)? [pick two answers]

• The price of iPhones would decrease

• The price of iPhones would increase

• The quantity of iPhones would decrease

• The quantity of iPhones would increase.

Each of the following is an example of a market, except _____.

• Crossroads Mall

• the Kalamazoo County Courthouse

• the Internet

• the Kalamazoo Farmers Market

The factors of production are _____.

• goods and services

• households and firms

• land, labor, and capital

• wages, salaries, and profits

As prices increase…

• …supply increases.

• …demand increases.

• …quantity supplied increases.

• …quantity demanded increases.

How does trade increase the value of an item?

• It makes the item more expensive to buy.

• It puts a variety of goods into competition.

• It provides work for storekeepers and truckers.

• It transfers the item to someone who values it more.

What is Economics?

• The science of money.

• A study of how people make use of limited resources.

• The desire to own something.

• None of the above.

Rachel was just hired to work at a new business. On her first day at work, her boss told her that she was hired because of her "human capital." What is her boss talking about when he uses this phrase?

• The physical equipment and machinery that Rachel is contributing to the business.

• The skills, experience, and education that Rachel already has.

• The money that Rachel is able to use when purchasing new resources for the business.

• The fact that Rachel lives in Lansing, Michigan and has good connections with lawmakers there.

Economists claim that individuals must make tradeoffs because of _____.

• Incentives

• Margins

• Markets

• Scarcity

Who answers "the questions" in ALL Command Economic Systems?

• A powerful dictator

• The government

• No one person -- individuals make decisions based on their own self-interest.

• The people make economic decisions by popular vote