FINAL EXAM - Economics: Work & Prosperity

? deals with the study of specific components within an economy.

• microeconomics

• macroeconomics

• statistics

• geography

Prodigality refers to spending more than one can afford.

• True

• False

The principle of diminishing marginal utility states that as one’s supply of a good increases, the satisfaction derived from each additional unit tends to decrease.

• True

• False

• Only for luxury goods

• Only when price increases

A ? good is a product made for direct use by individuals.

• consumer

• capital

A prosperous economy depends upon ?, the trait of doing quality work in an efficient manner.

• industriousness

• laziness

• careless

• mediocre work

When the price of a good falls, the quantity supplied tends to decrease.

• True
• False

When a country finds ways to produce more goods from existing resources, the prosperity of the national economy increases.

• True

• False

• Sometimes

• Never

If the price of a certain type of cereal doubled and caused consumers to cut in half the amount of that cereal they bought, the demand for that good would be

• inelastic

• elastic

• unitary elastic

• perfectly elastic

A ? contract forces a consumer to buy certain products before he can buy the ones he really wants.

• binding
• tying

When the division of labor is carried past the point of maximum efficiency, the result is ?.

• overspecialization

• underproduction

• equilibrium

• maximum output