Unit 3 Test Flashcards
Which is shown by the intersection of the supply curve and the demand curve?
equilibrium price of a good or service
Which accurately describes a shortage?
Consumer demand for a certain car is greater than the number of cars that can be produced.
In which situation would the price of a good be most likely to increase?
An increase in production costs results from a rise in wages.
When someone buys a fourth television for his or her house, what is the result?
decrease in the marginal utility of the television
Which accurately describes a situation in which substitution occurs?
A restaurant starts using margarine instead of butter because butter becomes more expensive.
Which is a trait of public goods?
nonexcludability
Which is not a major factor in determining thee level of wages?
level of production costs
Which limits the freedom of workers in the labor market?
inflexibility of the work force
Immigration can result in an increase in the supply of labor. Therefore, which can be a result of immigration?
general decrease in wages
Which leads to an increase in bargaining power for workers?
existence of unions
Which is intended to demonstrate to an employer the importance of cooperating with workers?
work slowdown.
Which has led to greater competition among workers looking for jobs?
globalization
Which is an example of a protectionist policy?
limiting the number of foreign cars that can be sold in the United States
Which housing decision provides a person with both housing and an investment?
buying a single-family home
Which commodity has the most inelastic supply?
housing
The selling price of houses is most likely to increase after a drop in which area?
mortgage interest rates
Which is most likely to result from a rapid increase in the population of a city or town?
seller’s market
Which gives people access to both high-paying jobs and more living space?
suburbs
Which is measured by a calculation of the amount of goods and services the average person can afford to buy?
standard of living
Which is most likely to create new markets?
free trade
Which best describes the effect of a tariff on the import of cars from a foreign country?
Foreign cars become more expensive.
Which leads to the end of a boom period in the business cycle?
reduction in consumer demand resulting from inflation
Which is the cause of demand-pull inflation?
Consumers want more and more goods and services.
Which is an example of a fiscal policy?
raising taxes in order to cover a budget deficit
