Exam 1 Multiple Choice Flashcards
The four factors of production are
Land, labor, capital, entreprenuership
The fundamental problem of economics is
The scarcity of resources relative to human wants
What is not a determinant of demand
Taxation and regulation
Tennis balls and rackets are used together. A decrease in the price of rackets will result in
An increase in the demand for tennis balls
When will total revenue decline
Price rises and demand is elastic
When income increases, the budget constraint
Shifts downward
When there is excess supply in a market
There is downward pressure on price
The satisfaction from consuming a good or service is
Utility
The combinations of two goods which a consumer can purchase with a given income is
A budget constraint
An advance in technology causes
A rightward shift in the supply curve
Where total utility is at max, marginal utility is
Zero
When the supply of gasoline decreases, the equilibrium price increases because
A shortage exists at the old equilibrium price
If there is an increase in the price of nitrogen for potatoes, this would result in
Fewer potatoes
An increase of income results in a decrease in chicken demand, thus chicken is a what good?
Inferior
The free-rider problem arises because
An individual can benefit from someone else’s purchase
