Business Economics Test 1 - 2/6/18

What is the ratio of a pound of yellow squash @ $ .40 a pound and a pound of butternut squash @ $1.20 a pound?

1 to 3

Which of the following factors affects consumers' decisions to buy goods or services:

Buying power

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

Distribution

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?

Financial and positive

Which of the following might cause supply of a good to decrease:

Government regulations

Which of the following is a negative economic incentive:

High taxes on cigarettes

Which of the following is an economic activity:

Purchasing a candy bar

Which of the following is a business comparing when it analyzes the cost of buying wood desks versus the cost of buying metal desks:

Relative price

Why are human resources limited?

Some people are unable to work

Which of the following is an example of a change in culture affecting the production of a good or service:

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

Why are resources considered limited?

There are not enough available so that everyone can have as much of them as desired.

When changes in a product's price cause corresponding changes in consumer demand, the product has

elastic demand

When customers buy the exact amount of goods that producers are selling at a specific price, the __________ price exists

equilibrium

The market's way of rationing limited resources, goods, and services to consumers in a market economy is through

prices

Which of the following is characteristic of a buyer's market:

Low prices

Which of the following is an example of excess supply:

Price = $500, demand = 500, supply = 300

Which of the following does consumption rely on to provide goods and services:

Producers

The amount of a product that is produced is most directly affected by

consumer demand