2.02 Quiz part 2

What are capital goods?

• Goods used for immediate consumption

• Goods used in the production of goods and services

• Goods that are imported from other countries

• Goods that have no economic value

What does demand refer to?

• The quantity of a good that buyers are willing to purchase at a given price

• The total production of goods in an economy

• The number of suppliers in a market

• The cost of raw materials

What are economic resources?

• Only natural resources

• Only capital goods

• Human, natural resources, and capital goods used for production

• Only financial resources

What is an economic want?

• A need that is necessary for survival

• A desire satisfied only by spending money

• A product with no value

• A non-essential good that is free

What happens when demand is elastic?

• Changes in price have no effect on demand

• Demand changes significantly with price changes

• Demand remains constant regardless of price

• Supply and demand are always equal

What does elasticity measure?

• The durability of a product

• How price changes affect demand and supply

• The lifespan of a good

• The weight of a product

What is equilibrium in economics?

• The point where supply exceeds demand

• The point where demand exceeds supply

• The point where quantity supplied equals quantity demanded

• The point where production stops

What is excess demand?

• When demand is lower than supply

• When demand is greater than supply

• When supply and demand are equal

• When prices drop due to excess inventory

What is excess supply?

• When demand is greater than supply

• When supply is greater than demand

• When supply and demand are balanced

• When supply is restricted by government policies

What are the factors of production?

• Only human resources

• Only natural resources

• Human, natural resources, and capital goods

• Only capital goods