objective exam 1

A local neighborhood has many houses for sale at a low price, but demand for the houses is low. What kind of market most likely exists in the neighborhood? Buyer's Inelastic Seller's Discretionary

Buyer's

What is one factor that will determine how much a customer is willing to pay for a good or service? Rationing Production costs Buying power Incentive

Buying power

Marcy is ready to buy a new computer, and she has saved up enough money to buy the model she wants. Which of the following describes the quantity that Marcy is prepared to buy: Market price Demand Supply Elasticity

Demand

When a large group of young people moves into a neighborhood, neighborhood businesses may try to develop new products to suit their needs. Which source of innovation does this illustrate? Experience Demographics Accidents Looking toward the past

Experience

The U.S. government is offering a decrease in taxes to citizens who install solar panels on their homes. Using economic terms, how would you describe this incentive? Non-financial and negative Financial and positive Non-financial and positive Financial and perverse

Financial and positive

What do consumers, producers, and resource owners need to have in order to make economic decisions? Rationing skills Limited liability Information about prices Economic incentives

Information about prices

Which of the following does consumption rely on to provide goods and services: Deciders Producers Consumers Owners

Producers

Which of the following is an economic activity: Following the stock market Purchasing a candy bar Balancing a checkbook Reading a bank statement

Purchasing a Candy par

Yvonne wants her innovation to succeed, so she makes sure that there's a market for her innovation and that she has plenty of money and resources on hand. Which step of achieving innovation is Yvonne demonstrating? Reducing risk Making connections Researching Being open-minded and flexible

Reducing risk

Which of the following is an example of a change in culture affecting the production of a good or service: Laws banning smoking in restaurants result in a decrease in demand for cigarettes. A shortage of chocolate chips causes a cookie company to stop production. The "green movement" leads to an increase in demand for recycled products. An oil spill in the ocean causes local seafood restaurants to lose business.

The "green movement" leads to an increase in demand for recycled products.

Your business is selling more and more large-screen televisions each month. Applying the law of supply and demand, what do you expect to happen to the price and supply of these televisions over the next few months? The price will increase, and supply will increase. The price will decrease, and supply will increase. The price will decrease, and supply will decrease. The price will increase, and supply will decrease.

The price will increase, and supply will increase.

In some states, it is against the law to sell alcohol on Sundays. This law was created to honor the Christian religious belief that Sunday is a special day of rest. This is an example of culture impacting the __________ of goods. packaging pricing production distribution

distribution

Orlando changes the price of one of his products, and this price change leads to a major change in the number of people who purchase the product. This means that demand for Orlando's product is elastic. constant. inelastic. competitive.

elastic

A gap between unlimited wants and limited resources creates wants. scarcity. resources. economics.

scarcity

John only had $40 to spend and couldn't decide whether to buy a new pair of jeans or to go to an amusement park. He finally decided to spend his money on the amusement park. What was the opportunity cost of his decision? $40 New pair of jeans Trip to amusement park No opportunity cost was involved.

New pair of jeans

Arm and Hammer baking soda, which was originally developed as a cooking ingredient, is now being sold as an effective refrigerator deodorizer. This is an example of ____________ innovation.

Positioning

What are the three basic economic questions? What products will be produced, how will products be produced, and how will products be allocated When will products be produced, how will products be produced, and how will products be allocated Where will products be produced, when will products be produced, and what products will be produced When will products be produced, what products will be produced, and how will products be allocated

What products will be produced, how will products be produced, and how will products be allocated

Which of the following is an example of paradigm innovation: Windows computer operating system Energy-saving light bulbs The latest model of the Honda Civic Rechargeable batteries

Windows computer operating system