Here are the suggested answers based on the questions provided:
-
Which of these is an example of a capital resource?
- Response: computers
-
Which of these is an example of a monetary incentive?
- Response: earning an allowance for doing chores
-
Which of the following goods or services is an import in the United States?
- Response: kitchenware purchased online from China
-
Which of the following laws is considered a trade barrier?
- Response: paying money to an industry to encourage it to make goods in the country
-
What is one potential negative consequence associated with free trade?
- Response: People in certain industries earn lower wages or sell fewer products.
-
Which policy would be in the best interests of consumers?
- Response: breaking up large companies to increase competition
-
Which statement best explains why division of labor increases labor productivity?
- Response: Workers learn to do their jobs more quickly when they repeat the same tasks.
-
A country has an economic boom and can afford to increase imports from a second country. What is likely to happen in the second country?
- Response: an economic boom
-
The United States signs a free trade agreement with another country that has dramatically different resources. How would this trade treaty affect the United States?
- Response: Industries will increasingly focus on using interdependence.
-
How would supply shift caused by lower costs of production affect price and quantity?
- Response: lower price, higher quantity
-
What does a relative price compare?
- Response: the price of one good or service to another
-
How does scarcity affect customers?
- Response: Limited money forces consumers to make choices.
-
When are equilibrium prices achieved?
- Response: when supply equals demand
-
A company introduces a printer that does not require ink cartridges. As a result, the price of printers that use ink drops. What is another likely outcome?
- Response: The price of ink cartridges drops.
-
According to the law of demand, what role do low prices serve for buyers?
- Response: reward
-
Why would both these stores attract a good number of customers?
- Response: Customers value different types of deals.
-
Which situation is more likely to occur in a market economy than a command economy?
- Response: An inventor designs and produces a new type of car.
-
How does the use of plastic to produce bicycle helmets affect other plastic-using industries?
- Response: It decreases the amount of resources available to other industries.
-
What is the most likely explanation for the large number of employees quitting?
- Response: decrease in positive incentives to work
-
Which of these is an example of price competition?
- Response: a special holiday sale
-
What effect could this price increase have on Malik’s lawn-cutting business?
- Response: Malik will be willing to take care of more lawns that week at the higher price.
-
Which of the following is a characteristic of a market economy?
- Response: limited role of government
-
Labor unions are most closely tied to which type of productive resource?
- Response: human resources
-
How do banks most help grow the economy?
- Response: They provide loans for consumers and investors.
-
What is the opportunity cost in the scenario above?
- Response: money that could have been made from families with young children
-
What is the most likely short-term consequence of his decision?
- Response: His football skills will get a little better.
-
If Maria decides to purchase the sun hat and towel, what is the opportunity cost of her purchase?
- Response: the magazines, the bathing suit
Make sure to double-check each response according to your understanding of the concepts in your economics course!
57 answers