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Week quizes

22 important questions on Week quizes

Fill in the Blanks
Not all goods are normal goods. If the demand for a good rises when income falls, the good is called an . An example of this kind of good might be bus rides. As your income falls, you are less likely to buy a car or take a cab and more likely to ride a bus.

inferior goods

Which of the following adequately capture changes in equilibrium?

all of these are correct

Fill in the Blank
A ________ can occur in a situation in which quantity demanded is greater than quantity supplied

shortag

Which of the following does not capture the essence or consequence of free-market competition?

lower quality of production and higher prices of products and services

Fill in the Blank
Competition is the absence of ________ and the presence of an environment of freedom which maximizes one’s volitional capacity to choose.

coercion

Which of the following is an incorrect statement?

competition means central planning, or the direction of the whole economic system according to one unified plan.

Competition encourages firms to...

supply goods and services consumers value highly relative to cost

Which of the following is incorrect regarding product innovation in a free-market economy?

The approval of central planners, a legislative majority, or business rivals is necessary for an entrepreneur to try out a new idea

Free-market competition directs the movement of markets relative to producers’ responses to consumers and vice versa. Which of the following does not adequately capture this?

producers desire the lowest price that the market (consumers) will bear given their propensity to produce goods and services for charitable causes.

Fill in the Blank
Competition enhances ________ through constant interaction and exchange. Consumers compete against consumers, producers against producers

cooperation

Which of the following represents the change in total value of benefit derived from an action such as consumption of an additional unit of a good or service? It reflects the maximum amount that the individual considering the action would be willing to pay for it.

marginal benefit

Which of the following represents the change in total cost resulting from an action such as the production of an additional unit of output

marginal cost

Fill in the Blank
Decisions are made at the ________, as individuals should exchange when marginal benefits exceed marginal costs.

margins

________ promotes economic progress because individuals exchange products, or trade, resulting in vast quantities of goods and services due to specialization and mass production.

trade

Which of the following defines the Law of demand?

A principle that states there is an inverse relationship between the price of a good and the quantity of it buyers are willing to purchase.

________ represents a state in which the conflicting forces of supply and demand are in balance.

equlibrium

________ represents a condition in which the amount of a good offered for sale by producers is greater than the amount that buyers will purchase at the existing price. A decline in price will eliminate the surplus.

surplus

Which of the following defines a Demand Curve?

Many people will predictably reject purchasing a product the more costly it becomes, thus producing a corresponding drop in the demand for that product or service—demand curves slope downward.

What is a price ceiling

A price ceiling establishes a maximum price that can be charged for a good, service, or resource.

Which of the following represents a market clearing price?

a condition in which supply meets demand and stabilizes prices

A price ________ establishes a minimum price that can legally be charged. When a price floor is imposed above the current market equilibrium, it will alter the operation of markets.

floor

The availability of ________—goods that perform similar functions—underlies the law of demand. No single good is absolutely essential; everything can be replaced with something else.

substitutes

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economics

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Week quizes

22 important questions on Week quizes

Fill in the BlanksNot all goods are normal goods. If the demand for a good rises when income falls, the good is called an ________ ________. An example of this kind of good might be bus rides. As your income falls, you are less likely to buy a car or take a cab and more likely to ride a bus.

Which of the following adequately capture changes in equilibrium?

Fill in the BlankA ________ can occur in a situation in which quantity demanded is greater than quantity supplied

Which of the following does not capture the essence or consequence of free-market competition?

Fill in the BlankCompetition is the absence of ________ and the presence of an environment of freedom which maximizes one’s volitional capacity to choose.

Which of the following is an incorrect statement?

Competition encourages firms to...

Which of the following is incorrect regarding product innovation in a free-market economy?

Free-market competition directs the movement of markets relative to producers’ responses to consumers and vice versa. Which of the following does not adequately capture this?

Fill in the BlankCompetition enhances ________ through constant interaction and exchange. Consumers compete against consumers, producers against producers

Which of the following represents the change in total value of benefit derived from an action such as consumption of an additional unit of a good or service? It reflects the maximum amount that the individual considering the action would be willing to pay for it.

Which of the following represents the change in total cost resulting from an action such as the production of an additional unit of output

Fill in the BlankDecisions are made at the ________, as individuals should exchange when marginal benefits exceed marginal costs.

________ promotes economic progress because individuals exchange products, or trade, resulting in vast quantities of goods and services due to specialization and mass production.

Which of the following defines the Law of demand?

________ represents a state in which the conflicting forces of supply and demand are in balance.

________ represents a condition in which the amount of a good offered for sale by producers is greater than the amount that buyers will purchase at the existing price. A decline in price will eliminate the surplus.

Which of the following defines a Demand Curve?

What is a price ceiling

Which of the following represents a market clearing price?

A price ________ establishes a minimum price that can legally be charged. When a price floor is imposed above the current market equilibrium, it will alter the operation of markets.

The availability of ________—goods that perform similar functions—underlies the law of demand. No single good is absolutely essential; everything can be replaced with something else.

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Fill in the Blanks
Not all goods are normal goods. If the demand for a good rises when income falls, the good is called an . An example of this kind of good might be bus rides. As your income falls, you are less likely to buy a car or take a cab and more likely to ride a bus.

Fill in the Blank
A ________ can occur in a situation in which quantity demanded is greater than quantity supplied

Fill in the Blank
Competition is the absence of ________ and the presence of an environment of freedom which maximizes one’s volitional capacity to choose.

Fill in the Blank
Competition enhances ________ through constant interaction and exchange. Consumers compete against consumers, producers against producers

Fill in the Blank
Decisions are made at the ________, as individuals should exchange when marginal benefits exceed marginal costs.