Economics & Scarcity Quiz

What is the opportunity cost associated with a choice?

Which of the following is considered a factor of production?

What does a point inside the Production Possibility Boundary (PPB) indicate?

How does an increase in factors of production affect the PPB?

In which economic system are the four economic questions answered by a single central authority?

What type of decision involves comparing the cost with the value of producing one more unit?

Which of the following is NOT considered a key economic issue?

What does productivity growth refer to in economics?

What happens to the equilibrium price and quantity when there is an increase in demand?

If demand decreases while the price remains the same, what immediate market condition is created?

Which of the following will cause the supply curve to shift outwards?

When equilibrium is disrupted by a decrease in supply, what effect does it have on price and quantity?

What is the equilibrium price when Qd = 100 - 3P and Qs = 20 + 2P?

How is excess demand at a given price impacted in the market?

What necessitates a movement along the supply and demand curves to establish a new equilibrium?

Which of the following describes the adjustment process after a decrease in demand?

What type of statements express opinions that cannot be tested?

Which variable is affected by changes in an exogenous variable?

What does a negative correlation between two variables imply?

What does the term 'ceteris paribus' mean in economic analysis?

Which of the following correctly calculates the tuition index for 2025 based on the given values?

How does an increase in price typically affect the quantity demanded for a good?

What is the index value of a good in the base year?

What factors can influence demand for a particular good?

What does Own Price Elasticity of Demand measure?

When the Own Price Elasticity of Demand is equal to 1, what does this indicate?

How does total revenue (TE) change for an elastic good when its price increases?

If the Own Price Elasticity of Demand is less than 1, how is the good classified?

What happens to Total Expenditure (TE) for an inelastic good when the price decreases?

What characteristic defines elastic demand?

How is Supply Elasticity best defined?

In what situation would total revenue increase for a good?

What does an elasticity of supply greater than 1 indicate?

When a good is considered inelastic, what happens to the burden of a tax placed on that good?

How does cross price elasticity behave when two goods are complements?

Which of the following statements about elastic supply is true?

Which scenario illustrates a good with elastic supply?

What happens to demand for inferior goods when consumer income rises?

If the cross price elasticity (Exy) between two goods is greater than 0, what is the relationship between the goods?

What does an elasticity of supply less than 1 indicate?

How does the burden of a tax shift when applied to a good with inelastic supply?

What outcome occurs when the price of a substitute good increases?

Which situation describes a normal good in terms of income elasticity?

In what scenario would cross price elasticity of demand be negative?

What happens to equilibrium price and quantity when there is an increase in demand?

What market condition is created when demand decreases and the price remains unchanged?

When the supply curve shifts outward, which of the following occurs?

What occurs in the market when there is a decrease in supply?

If the initial demand curve is represented by $Q_d = 100 - 3P$ and a shift causes a new equilibrium price of $P^* = 16$, what is the quantity demanded at this price?

In which scenario would both equilibrium price and quantity decrease?

What would be the outcome of a shift in the supply curve due to a technological improvement?

What happens to equilibrium price (P*) and quantity (Q*) when the demand decreases?

What effect does a constant price have on quantity supplied when there is an increase in supply?

What best defines an exogenous variable in economic models?

What does the term 'ceteris paribus' allow in economic analysis?

What defines the efficiency of points on the Production Possibility Boundary (PPB)?

In the context of demand, what is the consequence of a price increase?

Which statement represents a positive correlation between two variables?

Which of the following best describes opportunity cost?

Which of the following statements is an example of a normative statement?

How does accelerated technological change impact economic systems?

In microeconomics, marginal decisions are primarily concerned with which of the following?

What does an index value of 100 represent?

Which of the following economic systems focuses on the interaction of consumers and producers to answer economic questions?

How does an increase in the price of a good typically affect the demand curve?

What is a defining characteristic of an endogenous variable?

What implication does a point inside the Production Possibility Boundary (PPB) have?

Which outcome is indicative of negative correlation between two variables?

What happens to the Production Possibility Boundary (PPB) when there is an increase in factors of production?

Which key economic issue refers to disparities in wealth distribution within a society?

What result does a change in demand yield when all other factors remain constant?

What does an absolute value of the Own Price Elasticity of Demand signify?

If the Own Price Elasticity of Demand is greater than 1, what can we conclude about the relationship between price and quantity demanded?

How does total expenditure (TE) behave for an elastic good when the price of the good increases?

In the context of total expenditure, what is the expected outcome when the price of an inelastic good decreases?

Which statement best represents the relationship between price and elasticity of demand?

What effect does a higher own price elasticity of supply indicate regarding producer responsiveness?

What is the primary metric used to measure the responsiveness of quantity supplied to price changes?

Which scenario would demonstrate a good with inelastic demand?

Under what condition does total revenue move in the direction of quantity demanded?

An increase in ______ causes the demand curve to shift outwards.

When demand increases, both ______ and quantity will increase.

A decrease in demand causes a surplus at the original price, which pressures ______ to drop.

When supply increases, the equilibrium price will ______ and quantity will increase.

A decrease in supply creates a shortage, resulting in an increase in ______.

At equilibrium, quantity demanded equals quantity ______.

The equations representing the demand and supply curves are Qd = 100 - 3P and Qs = 20 + 2______.

When demand decreases, the quantity demanded is now less than quantity ______.

To find equilibrium, set Qd equal to Qs and solve for ______.

Econ Surplus is the sum of the CS and PS and is represented by the area bounded by the y axis and the ______ curve up to the qty exchanged in the market.

Price floors, price ceilings, and quotas are considered inefficient because they result in a reduction in the quantity exchanged in the market, leading to a loss of economic ______.

Firms can raise money by selling off ______ of ownership, which provide shareholders with a share of the firm's profits.

Accounting profits are calculated as total revenue minus explicit ______.

Economic profits include opportunity costs, which are also referred to as ______ costs.

As P increases, quantity D ______.

When the price of a substitute decreases, consumers will buy more of the ______.

As consumers' tastes change towards a good, the demand for that good will ______.

A decrease in the price of inputs will cause the supply curve to shift ______.

Government taxes increase the cost of production, leading to a shift of the supply curve ______.

An increase in population typically results in an increase in ______.

When the price of a complement increases, the demand for the good being analyzed will ______.

Es > 1 means % change in Qs > % change in P, indicating a good has ________ supply.

When a tax is placed on a good, it creates a ________ shifted supply curve.

Income elasticity (Ey) measures the responsiveness of Qd to a change in ________.

If Ey > 1, the good is considered ________.

Complements are goods used ________, where an increase in the price of one leads to a decrease in the quantity demanded for the other.

Substitutes are goods that can be used in ________ of one another.

When Ey < 0, the good is defined as an ________ good.

The burden of a tax on inelastic goods tends to fall more on the ________.

When the price of Good Y increases, the quantity demanded of Good X will also increase if they are ________.

Disequilibrium prices are prices that are prevented from reaching ________.

When prices are held too high, it creates excess supply (Qd < Qs) and the qty exchanged in the market is the ______.

A ______ is a minimum price set in a market, such as a minimum wage.

For a Price Ceiling to be binding, it must be set lower than the ______ price.

The consumer places a higher value on the first unit consumed and a lower value on each ______ unit after.

The Supply curve represents the total cost of ______ a good.

Markets are called efficient when they maximize the Economic ______ in the market.

Consumer Surplus is the difference between how much the consumer ______ the product and the market price.

In a price floor scenario, the quantity exchanged will be ______.

For a Price Floor to be effective, it must be higher than the ______ price in the market.

When prices are too low, it creates excess demand (Qd > Qs) and the qty exchanged in the market is the ______.

Which scenario best illustrates the core problem that economics seeks to address?

What role do incentives play in the context of economic decision-making?

Differentiate between microeconomics and macroeconomics based on their primary areas of focus.

Which of the following questions falls under the scope of microeconomics?

Which of the following scenarios is an example of a macroeconomic question?

In economics, why is it important to understand 'what, how, and for whom' goods and services are produced?

What central question does the examination of choices made in the pursuit of self-interest promoting the social interest address?

According to economic principles, when should an individual increase the level of an activity?

How do changes in incentives impact economic choices, according to economic theory?

What differentiates a positive statement from a normative statement in economics?

Why do economists build and test economic models?

In what capacity do economists blend positive and normative economics when advising on policy questions?

According to the content, what is a significant contributor to global carbon emissions?

Which of the following actions is presented as a way to lessen one's carbon footprint?

What question is raised regarding self-interested choices related to carbon emissions?

What critical question does the content pose about banks' lending and borrowing activities?

According to the 'economic way of thinking', how do people make rational choices?

In economic terms, what does 'cost' primarily refer to when making a choice?

What type of decision is primarily made 'at the margin' according to the economic way of thinking?

What role do governments play in influencing self-interested choices related to social interest?

Which countries or regions are identified as the source of two-thirds of the world’s carbon emissions?

According to the key ideas of economic thinking, what is 'benefit' defined as?

In economics, what condition defines 'efficiency' in resource use?

Which scenario best illustrates the tension between self-interest and social interest?

Which of the following examples reflects a decision primarily driven by social interest?

How does globalization potentially create a conflict between self-interest and social interest?

What is the primary concern related to 'information-age monopolies' from a social interest perspective?

You are deciding whether to purchase domestically produced clothing or imported clothing. Buying the imported clothing is an example of:

How can technological advancements, such as those in the 'Information Revolution', create both self-interest gains and potential conflicts with social interest?

Which of the following scenarios best illustrates the concept of a tradeoff in economic decision-making?

What is the primary criterion for determining whether a choice is rational from an economic perspective?

Consider a scenario where a company decides to automate its production processes, leading to increased efficiency but also resulting in job losses. Which economic concept does this best illustrate?

How do preferences primarily influence economic decision-making?

What is a key difference in how self-interest and social interest consider costs and benefits regarding environmental protection policies?

Which scenario exemplifies the opportunity cost of attending a conference?

What does making a choice 'at the margin' typically involve?

How does the economic way of thinking address the fundamental problem of scarcity?

Which of the following best describes the relationship between costs, benefits, and rational choice?

In the context of opportunity cost, what is the key factor in determining the 'highest-valued alternative'?

A student has an hour before class and can either study or socialize. How would they make a rational choice at the margin?

How do incentives relate to choices, according to the 'economic way of thinking'?