Economic Environment module 2

Falling economic indicators typically signal .... in the economy.

recession

When higher prices result in higher quantity supplied, economists call this relationship:

the law of supply

A market economy includes which characteristic?

Economic decision- making happens through markets

Which of the following events can shift the demand curve?

Population grows in a particular market area

When economist talk about supply, they are referring to a relationship between the price and a market and the:

amount that produces collectively make available for sale.

According to the law of demand, assuming other factors are held constant:

as the price of bread increases, the quantity of bread demanded will decrease.

The Quality company makes travel clothes, gear, hammocks, and blankets. The company used Kickstarter to fund increased production of its new "Trailhead Pants" line. Increase production has resulted in a decrease in the average per pant production cost. This increase in production efficiency is an example of:

economies of sale

The field of economics that looks at the economy as a whole and focuses on broad issues such as growth, unemployment, inflation, and trade balance is:

macroeconomics

In a world of scarcity, we will never:

meet all of society's wants

If a community college decided to build an academic building, then the money and resources would not be available for a parking garage. This is an example of:

opportunity cost

An unexpected freeze has damaged the Florida orange crop. As a result orange juice producers will pay more for oranges and ultimately consumers will have to pay more for orange juice at the grocery store. The impact on the market for orange juice will cause which of the following to shift to the left?

the supply curve

The point of a business cycle fluctuation during which growth ceases and the economy has hit a bottom is called a(n):

trough