Economic Concepts and Principles Assessment

What is a shortage in economic terms?

• When demand is greater than supply

• When supply is greater than demand

• When supply equals demand

• When prices are constant

Which of the following is a direct result of a surplus?

• Higher consumer prices

• Lower consumer prices

• Increased demand

• Decreased supply

Which of the following statements is true about surpluses?

• They always increase prices

• They occur when demand exceeds supply

• They benefit consumers with cheaper products

• They reduce the quantity of goods available

Which of the following is NOT a characteristic of a surplus?

• Extra product on the market

• Decreased prices

• Increased demand

• Benefit to consumers

What does the term “explicit alternative” refer to in economic choices?

• The unseen cost

• The cost present at the time of decision-making

• The future value of money

• The total opportunity cost

What is the main difference between explicit and implicit alternatives?

• Explicit alternatives are always monetary, implicit are not

• Explicit alternatives are present at decision-making, implicit are unseen

• Implicit alternatives are always better

• There is no difference

How does the concept of opportunity cost apply to time management?

• It only applies to money

• It helps you understand what activities you give up when choosing how to spend your time

• It is not relevant to time management

• It only considers explicit alternatives

Which of the following is NOT a marginal cost?

• The cost of producing one more unit

• The cost of waiting an extra day for a flight

• The cost of a non-refundable ticket already purchased

• The cost of buying one more item

Which of the following is exchanged for goods and services in the economic system?

• Money

• Land

• Shares

• Time

Which of the following is NOT a direct participant in the economic system as described?

• Aliens

• Consumers

• Government

• Businesses