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Econ > Econ CIA #1 > Flashcards

Econ CIA #1 Flashcards

1
Q

Which of the following economic concepts results in the old adage “you can’t always get what you want”, which is true for everyone?
A. Opportunity Cost
B. Scarcity
C. Law of Supply
D. Law of Demand

A

B. Scarcity

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2
Q

Which economic system allows individual citizens to make all of the decisions about what is produced, how goods are produced and who has access to the produced goods?
A. Traditional Economy
B. Command Economy
C. Market Economy
D. Mixed Economy

A

C. Market Economy

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3
Q

Which of the following explains the Law of supply?
A. As prices increase, the quantity supplied increases
B. As prices decreases, the quantity supplied increases
C. As prices increases, supply increases
D. As prices decreases, supply increases

A

A. As prices increases, the quantity supplied increases

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4
Q

Which of the following is a graphic illustration of the exchanges of goods and services and resources between individuals and businesses in the product market and resource market?
A. Supply and Demand Graph
B. Supply and Demand Schedule
C. Production Possibility Curve
D. Circular Flow Model

A

D. Circular Flow Model

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5
Q

Which of the following represents a human resource that would be needed by a restaurant owner?
A. A new grill in the kitchen
B. Table decorations for the dinning area
C. Culinary Training for the Chef
D. Fresh Produce

A

C. Culinary Training for the Chef

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6
Q

As the price of iPhone 14 Pro dropped, customers increased the quantity of phones purchased. This is an example of which of the following
A. Law of Demand
B. Law of Supply
C. The Law of Consumer Choice
D. The Law of Retail Science

A

A. Law of Demand

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7
Q

Sarah and Jim both receive new iPhones from their grandparents for Christmas. Sarah’s is blue and Jim’s is red. Sarah prefers the red one and Jim prefers the blue one. What should they do?
A. Engage in a non-fraudulent, voluntary trade so that they both benefit
B. keep the present they received so that they don’t hurt their grandparents’ feelings
C. keep the present they received, because they would both loose in the trade

A

A. Engage in a non-fraudulent, voluntary trade so that they both benefit

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8
Q

Ford begins using robotics to produce F150s. Which economic question is being answered by Ford.Which economic question is being answered by Ford.
A. What to produce
B. How to produce
C. When to produce
D. For whom to produce

A

B. How to produce

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9
Q

Jill and her friends are planning a “girls night out”. They decide to go to dinner at Jalapenos instead of going to the movies. What is their opportunity cost?
A. The price of the dinner
B. The cost of the movie
C. The entertainment from the movie
D. The satisfaction of the dinner

A

C. The entertainment from the movie

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10
Q

All of the following are true statements about the Circular Flow Model EXCEPT
A. Individuals are demanders in the product market
B. Firms are suppliers in the resource market
C. Firms are suppliers in the product market
D. Individuals are suppliers in the resource market
C. Firms are suppliers for the product market

A

C. Firms are suppliers in the product market

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11
Q

In which of the following business organizations does an individual have the least amount of opportunity for making decisions for the business?
A. Corporation
B. Partnership
C. A Franchise
D. Sole Proprietorship

A

A. Corporation

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12
Q

Scarcity is described as
A. The result of unlimited wants versus limited resources
B. Demand being greater than supply
C. Supply being grater than demand
D. Supply equaling demand

A

A. The result of unlimited wants versus limited resources

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13
Q

A. The result of unlimited wants versus limited resourceWhen the price of Coca Cola decreases what happens to demand for Pepsi?
A. Demand for Pepsi will increase
B. Demand for Pepsi will decrease
C. Demand for Pepsi will stay the same
D. Demand for Pepsi will be indeterminate

A

B. Demand for Pepsi will decrease

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14
Q

Which of the following is an example of a shifter of supply that would lead to an increased supply of hamburger buns?
A. Wages for bakery workers increases
B. Price of hamburgers increases
C. Price of wheat flour decreases
D. An increases in the number of consumers on a low-carb diet

A

C. Price of wheat flour decreases

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15
Q

Which of the following is an example of a shifter of supply that would lead to an increased supply of hamburger buns?
A. Equilibrium price increases, equilibrium quantity increases
B. Equilibrium price decreases, equilibrium quantity decreases
C. Equilibrium price decreases, equilibrium quantity increases
D. Equilibrium price is unclear, equilibrium quantity decreases

A

D. Equilibrium price is unclear, equilibrium quantity decreases

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16
Q

What happens when the government gives a subsidy to corn producers?
A. The supply of corn shifts to the right (increases)
B. The demand for corn shifts to the right (increases)
C. The supply of corn shifts to the left (decreases)
D. The demand for corn shifts to the left (decreases)

A

A. The supply of corn shifts to the right (increases)

17
Q

If demand for Red Bull decreases while the supply stays the same, what happens to equilibrium price and quantity?
A. Price increases and quantity increases
B. Price increases and quantity stays the same
C. Price decreases and quantity decreases
D. Price stays the same and quantity decreases

A

C. Price decreases and quantity decreases

18
Q

Which of the following is a benefit of starting a partnership business model?
A. Owner has complete control of the business
B. Owner is able to raise more money for the owner of the business
C. There is very little liability for the owner of the business
D. Owner does not have to share the profits of the business

A

B. Owner is able to raise more money for the owner of the business

19
Q

What is the best way for a country or business to increase economic growth in the future?
A. Improve human capital by investing in worker skills and education
B. Limit international trade with other countries
C. Employ only minimum wage workers
D. Limit physical capital expenses

A

A. Improve human capital by investing in worker skills and education

20
Q

In which business organization do the individual owners have the greatest amount of liability for the decisions of the business?
A. Sole Proprietorship
B. Partnership
C. Franchise
D. Corporation

A

A. Sole Proprietorship

Econ (1 decks)

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