Econ. Unit 1/2 Quest

In which of the following countries will the national government have the greatest influence with respect to the nation's economy?

• China

• Cuba

• Canada

• Chile

In a command economy, the ______ either makes most economic decisions itself or at least strongly influences how the decisions are made.

• government

• market

• private sector

• individuals

Which economic system are all resources privately owned and the buyers and sellers answer the three economic questions?

• Traditional

• Command

• Market

• Mixed

Scarcity exists because of:

• the market mechanism.

• specialization and division of labor.

• the allocation of goods by prices.

• unlimited wants and limited resources.

Camille is at the candy store with Grandma Mary, who offers to buy her $6 worth of candy. If lollipops are $1 each and candy bars are $2 each, what combination of candy can Camille's Grandma Mary buy her?

• 6 lollipops

• 3 candy bars

• 2 candy bars and 2 lollipops

• 1 candy bar and 4 lollipops

Gomer decides to spend an hour playing basketball rather than studying. His opportunity cost is:

• nothing, because he enjoys playing basketball more than studying.

• the increase in skill he obtains from playing basketball for that hour.

• the benefit to his grades from studying for an hour.

• nothing, because he had a free pass into the sports complex to play basketball.

Most choices involve ______, which involves comparing the benefits and costs of choosing a little more or a little less of a good.

• utility

• marginal analysis

• the budget constraint

• consumption

Refer to the table above. A student has only a few hours to prepare for two different exams tomorrow morning. The above table shows alternative possible exam outcomes with three alternative uses of the student's time. The opportunity cost of scoring an 84 on the history exam rather than a 76 is:

• 10 points on the economics exam

• 8 points on the history exam

• 7 points on the economics exam

• 12 points on the economics exam

The downward slope of the demand curve illustrates the pattern that as ______ rises, ______ decreases.

• quantity demanded, price

• quantity supplied, quantity demanded

• price, quantity demanded

• price, quantity supplied

When quantity demanded decreases in response to a change in price:

• the demand curve shifts to the right.

• the demand curve shifts to the left.

• there is a movement down along the demand curve.

• there is a movement up along the demand curve.