ECON quiz 1- EXAM #1

Question 1

economics Definition

Answer 1

the study of how individuals and societies chose to use the scarce resources

Question 2

what will occur when there is a simultaneous decrease in demand and a decrease in supply

Answer 2

a decrease in equilibrium quantity

Question 3

the period in the business cycle from a peak to a trough is a

Answer 3

recession

Question 4

during an economic downturn when consume income falls, the demand for tacos increases and the demand for sushi decreases, this implies that tacos

Answer 4

are an inferior good and sushi is a normal good

Question 5

in economics, investment always refers to

Answer 5

the creation of new capital

Question 6

what will occur when there is an increase in the supply of and decrease in the demand for MP3 players?

Answer 6

a decrease in equilibrium price

Question 7

a higher price for batteries will result in a

Answer 7

decrease in the demand for flashlights

Question 8

good X and good Y are substitutes. if the price of good Y increases, then the

Answer 8

demand for good X will increase

Question 9

the overriding reason as to why households and societies face many decisions is that

Answer 9

resources are scarce

Question 10

fiscal policies regard

Answer 10

taxes

Question 11

gov policies regard

Answer 11

expenditures