Economics Semester Exam Latest 2022

Which of the following is considered a natural resource? Water A business produces picnic tables and benches. The business currently produces 20 tables and 10 benches per week. An increase in demand for benches has the business considering a change to 15 tables and 15 benches per week. What is the trade-off the business must make? The choice between the net profit of the new production schedule and the net profit of the old production schedule 00:02 01:23 How can a community manage its factors of production to ensure continued availability of labor? Provide proper wages and access to public goods A consumer must decide between purchasing a new television or a new computer. If the consumer chooses the television, then what is the opportunity cost of this decision? The opportunity cost is the consumer's benefit from purchasing the computer. Mixed Economy An economy that takes elements from both a market economy and a command economy to allocate resources and determine the production of goods and services Traditional Economy An economy where culture determines both the allocation of resources and the production of goods and services Command Economy An economy where a central government determines both the allocation of resources and the production of goods and services Market Economy An economy where price signals, resulting from supply and demand forces within the economy, determine the allocation of resources and the production of goods and services Why does the government oversee the provision of public goods? Public goods are goods and services that are non-excludable and non-rivalrous; therefore, it is not profitable or in the best interest of private businesses to provide these goods. In the circular flow diagram, what do firms receive from product markets? Revenue For a relatively elastic portion of a demand curve, a 100%100% increase in price will be accompanied by _____. A percent decrease in quantity demanded greater than 100% If income levels of consumers within a given economy increase, what would happen to the demand curve for cell phones, a normal good, and the demand curve for instant noodles, an inferior good? The demand curve for cell phones would shift to the right, and the demand curve for instant noodles would shift to the left.