Econ Skinny Midterm

For the law of demand, as price rises, what happens to quantity demanded?

• it goes up
• it goes down
• it stays the same
• it is not effected

What does this curve represent?

• supply
• equilibrium
• demand
• surplus

When the demand curve has shifted to the right, this suggests demand has

• increased

• decreased

• quantity demanded has increased

• quantity demanded has increased

The point where supply and demand are balanced is?

• Product

• Demand

• Surplus

• Equilibrium

What event in the midwest would shift the supply curve for corn to the left? 

• an influx of new low-wage workers
• a thunderstorm with large hail
• evidence that corn improves athletic ability
• a study stating that corn causes heart disease

Definition of opportunity cost: What is the definition of opportunity cost?

• The cost of an opportunity

• The value of the chosen alternative

• The price of the next best alternative

• The value of the next best alternative that is given up when a decision is made.

Which of these is NOT one of the three economic questions?

• What goods should be produced?

• How goods should be produced?

• Whom will goods be produced for?

• Where shall goods be produced?

Which definition best defines scarcity?

• Demand for a good/service that is greater than the availability of that good/service

• Benefits lost when choosing one option over another

• The willingness of consumers to purchase a given amount of a good/service at a given price

All of these are examples of scarcity EXCEPT

• land

• water

• trash

• housing

A farmer chooses to plant wheat over corn. What is this an example of?

• scarcity

• supply and demand

• opportunity cost

• resources