Economics
Question 1
1. Economics is the study of
2. Which of the following is not a central focus of the “economic perspective
3. The satisfaction or pleasure one gets from consuming a good or service is
4. The private ownership of property resources and use of prices to direct and coordinate economic activity is characteristic of
5. Which statement best describes a capitalist economy
6. Capitalism is an economic system that
7. In a market system, well-defined property rights are important because they
8. If two goods are complements
9. When the price of a product is increased 10 percent, the quantity demanded decreases 15 percent. In this range of prices, demand for this product is
10. Demand can be said to be inelastic when
11. Economic growth is shown by a shift of the production possibilities curve outward and to the right
12. The four factors of production are land, labor, capital, and government services
13. If demand increases and supply simultaneously decreases, equilibrium price will rise
14. Property rights have a positive effect in a market economy because they encourage owners to maintain their property
15. In the price range where demand is inelastic, a decrease in price will result in a decrease in total revenue
16. Price elasticity of supply decreases the longer the time period
17. Toothpaste and toothbrushes are substitute goods
18. A government-set price ceiling will lower equilibrium price and quantity in a market
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