Econ Post Test

A person who uses a new idea to bring out a product or service to the marketplace is known as:

An entrepreneur

Why do people in all societies have to make choices about how to use resources?

Resources used in the production of goods and services are limited.

If in an emergency the government sets a limit on the price that can be charged for gasoline (price ceiling), what is the most likely result?

There will be less gasoline available than people want to buy.

Which of the following would reduce inequality of income in the United States?

Improvement of schools serving lower-income populations.

When good weather in the Midwest increases the wheat harvest, the result is:

Higher quantity and lower prices.

What word would apply if the total dollar value of spending in the United States went up but the goods and services consumed remained just the same?

Inflation

Think about the quantity of plums and apples that people want to buy in a market. If the price of plums doubled and the price of apples stayed the same, what would happen to these quantities?

Plums down, apples up

If a government restricts the imports of sugar into a nation, who is likely to benefit?

The nation's sugar producers.

For most people, the largest portion of their personal income comes from:

Wages and salaries from their jobs.