Economics Unit 1 Review

Economics is important because...

• it shows us how we allocate scarce goods and services.

• Mrs. Short likes it.

• it helps us understand dictators.

We measure risk and reward using...

• Price

• Expected Value

• Quantity

What assumption do economists make?

• That politicians care about economics.

• That the government stays out of markets.

• That people are rational.

What is the formula for expected value?

• Potential Reward

  x

  Probability of Success

• Potential Reward

  /

  Probability of Success

• Potential Reward

  • +

  • Probability of Success

A table showing the relationship between price and Qd is...

• A supply schedule

• A demand schedule

• A market schedule

A table showing the relationship between price and Qs is...

• A supply schedule

• A demand schedule

• A market schedule

A table showing the relationship between price, Qd, and Qs is...

• A supply schedule

• A demand schedule

• A market schedule

What are the types of incentives?

• Positive

• Elastic

• Negative

Prices mainly ensure that...

• money is useful

• basic needs are fulfilled

• Supply = Demand

If a new substitute becomes available, the demand curve shifts to the...

• right

• left