Unit 1 Exam (EPF)

Economics is the study of production, distribution, and consumption of goods/services

• N/A

• True

• False

• N/A

A good is an activity that is consumed. A service is a tangible good that is consumed.

• N/A

• True

• False

• N/A

The concept of demand still applies even if the consumer cannot afford a specific good/service

• N/A

• True

• False

• N/A

Income change is a cause of demand shift that dictates the consumer has had a recent increase/decrease in income

• N/A

• True

• False

• N/A

Adam Smith developed the economic theory of command systems driving allocation for all government expenses

• N/A

• True

• False

• N/A

Supply/demand represent the interrelated nature of how the market reacts to what consumers are willing to purchase and for how much.

• N/A

• True

• False

• N/A

A command system economy is best represented by traditional village based examples such as Amish communities, indigenous tribes, etc.

• N/A

• True

• False

• N/A

Surplus represents when there is not enough of a good available according to demand, and how the price of a product will rise in response.

• N/A

• True

• False

• N/A

The price of waffles rising or falling in relation to the price of syrup rising or falling has to do with the concept of the substitution effect

• N/A

• True

• False

• N/A

According to the basics of comparative advantage, global trade tends to be a net benefit for countries involved even despite the potential for absolute advantage

• N/A

• True

• False

• N/A