Economics and Personal Finance Cumulative Exam Review

Land is considered a resource because it B. is used to produce things
What role do government agencies play in a mixed market economy? C. They regulate some aspects of production and distribution.
Equilibrium occurs when supply and demand coordinate to B. set prices and production
Which of the following would be a producer? A. someone owning a book store
Which is likely to occur if there is a price increase for a good which exhibits elastic demand? C. People might buy a less expensive substitute good.
What are the basic types of resources used by producers? Check all that apply. -capital-labor-land
A chart that shows the connection between consumer demand and price is a D. demand schedule
A possible result of disequilibrium is A. excess demand
John has a large apple orchard. He has decided to bake pies and sell them at the local farmer’s market. Which best describes John’s use of economics? A. John is using available and renewable resources.
The government has the right to own all land, buildings, and factories in a B. command economy
In a command economy, a cotton farm floods after a heavy storm. The repair work most likely will be paid by B. the government group that runs the farm.
In a competitive market, an electronics company releases a smartphone that is much faster than older models. This is an example of D. creating an innovative product.
What are some ways to address unemployment in a market economy? CHECK ALL THAT APPLY. -creating new projects-lowering restrictions-promoting hiring
Study the following production possibility curve.The number of data points that illustrate the proper allocation of resources is three
The graph shows a point of equilibrium.If supply for a product is low but demand is high, what most likely needs to happen to achieve equilibrium? C. the supply needs to be raised.
Excess supply is created when price or _________ move away from the equilibrium point. quantity
What is an example of goods? D. a computer game
Both a demand curve and a demand schedule show how A. prices affect consumer demand.
What is the best definition of elasticity in economics? C. Elasticity of demand measures how the amount of a good changes when its price goes up or down.
The graph shows a supply curve.Which events could cause the change in supply shown on this graph? Check all that apply. -A producer goes out of business.-A natural disaster causes production to drop.-A resource needed to produce more of the good has become scarce.
To create the proper tone for an argumentative essay, a writer should D. use a straightforward approach.
A clothing store has ordered a new supply of jeans for the fall season and wants to sell off the remaining items from the previous spring. What action would the store owner most likely take? D. The store owner would most likely lower the price of the spring jeans to encourage consumers.
In the free-enterprise system of the United States, the government B. makes some economic decisions.
How do economists use data? Check all that apply. -to follow and predict unemployment rates-to explain trends in production and shipping
On a graph, when demand _________ , the demand curve shifts to the left. decreases

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