Economics Quiz 3

This is the fundamental law of economics that asserts once the price of a good increases, so too does its production.

• law of demand

• law of supply

• scarcity

• equilibrium

This is the fundamental law of economics that asserts once the price of a good increases, its consumption decreases.

• law of demand

• law of supply

• scarcity

• equilibrium

In an economy, this is the amount of a good or service purchased or desired for purchase by consumers.

• supply

• demand

• scarcity

• surplus

In an economy, this is the amount of a good or service provided by producers.

• supply

• demand

• scarcity

• surplus

This book articulated and codified the foundational beliefs of modern free-market economics.

• The Invisible Hand

• The Wealth of Nations

• Capitalism

• Free Trade

This is the concept that profit-driven individuals will provide for society’s needs.

• The Invisible Hand

• The Wealth of Nations

• Capitalism

• Free Trade

This is the practice of eliminating tariffs in order to maximize regional and interregional commercial trade.

• Free Trade

• Capitalism

• Laissez-faire

• Tariffs

This fundamental principle of free market economics ensures that a variety of suppliers will result in equilibrium price and high(er) production quality.

• Competition

• Scarcity

• Surplus

• Shortage

This is the study of economics concerned with the single factors and decisions of individuals.

• Macroeconomics

• Microeconomics

• Capitalism

• Free Trade

This is an internal or external drive that motivates or encourages one to do something.

• Scarcity

• Incentive

• Surplus

• Shortage