American Social Issues - Economics - Overla

25 Questions | Total Attempts: 91

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American Social Issues - Economics - Overla - Quiz

Questions and Answers
  • 1. 
    A local grocery store orders 200 cases of Pepsi each week and sells them at a price of $6.00 per case. At the end of the first week, they hace only sold 160 cases.  What economic situation is the grocery store facing and what will have to happen to price in order for equilibruim to be attained?
    • A. 

      Surplus; price will rise.

    • B. 

      Surplus; price will fall

    • C. 

      Shortage; price will rise

    • D. 

      Shortage; price will fall

    • E. 

      Nothing since the market is in equilibrium

  • 2. 
    Which of the following can lead to an increase in the supply for good X?
    • A. 

      A decrease in the number of sellers of good X.

    • B. 

      An increase in the price of inputs used to make good X.

    • C. 

      An increase in consumers' income, assuming good X is a normal.

    • D. 

      Both A and B

    • E. 

      None of the above

  • 3. 
    An increase in the price of electricity will:
    • A. 

      Increase the demand for kerosene heaters.

    • B. 

      Increase the demand for light bulbs.

    • C. 

      Increase the demand for stereos.

    • D. 

      Increase the demand for TVs.

  • 4. 
    Which of the following events will cause an increase in the market demand for Guinness (a brand of beer)?
    • A. 

      A decrease in the price of Guinness

    • B. 

      An increase in the price of Heineken (another brand of beer)

    • C. 

      An increase in the price of Planters peanuts (a complementary good).

    • D. 

      Both A and B

    • E. 

      None of the above will cause an increase in demand

  • 5. 
    Consists of the production and exchange of goods and services among a group of people.
    • A. 

      Command economy

    • B. 

      Traditional economy

    • C. 

      Market economy

    • D. 

      Economy

  • 6. 
    The following two things are true with this economy: 1.  The government passes laws that regulate wages in the economy (minimum wage laws).  2. Businesses within the economy set their own prices This is an example of:
    • A. 

      Mixed economy

    • B. 

      Traditional economy

    • C. 

      Command economy

    • D. 

      Market economy

  • 7. 
    Person A trades goods and services with Person B. Person B then provides Person A with three pounds of fish. This is an example of:
    • A. 

      Mixed economy

    • B. 

      Traditional economy

    • C. 

      Command economy

    • D. 

      Market economy

  • 8. 
    In this country the government makes ALL the decisions as to what is produced, how much is charged, who gets what is produced, etc. This is an example of
    • A. 

      Mixed economy

    • B. 

      Traditional economy

    • C. 

      Command economy

    • D. 

      Market economy

  • 9. 
    Bob is a coal miner.  He participates a what economic activity level:
    • A. 

      Primary

    • B. 

      Secondary

    • C. 

      Tertiary

    • D. 

      Quaternary

  • 10. 
    Jean is a veterinarian.  She participates at what economic activity level:
    • A. 

      Primary

    • B. 

      Secondary

    • C. 

      Tertiary

    • D. 

      Quaternary

  • 11. 
    Albert is a carpenter who works in a cabinet makers shop.  He participates at what economic activity level:
    • A. 

      Primary

    • B. 

      Secondary

    • C. 

      Tertiary

    • D. 

      Quaternary

  • 12. 
    Eli is an investment banker who manages the investment portfolios for a 1/2 dozen large corporations.  He participates at what economic activity level:
    • A. 

      Primary

    • B. 

      Secondary

    • C. 

      Tertiary

    • D. 

      Quaternary

  • 13. 
    Switch grass is a biodegradable fuel source that is used to produce ethenol.  It is a _________________ resource.
    • A. 

      Renewable

    • B. 

      Non-renewable

    • C. 

      Inexhaustible

  • 14. 
    Many people are installing geo-thermal units in their homes for heating and cooling purposes.  A geo-thermal unit takes energy from inside the earths surface, it is a ___________ resource
    • A. 

      Renewable

    • B. 

      Non-renewable

    • C. 

      Inexhaustible

  • 15. 
    The United States and the rest of the world burn through an incredible amount of oil each year.  This is unfortunate because oil  is a ______________ resource.
    • A. 

      Renewable

    • B. 

      Non-renewable

    • C. 

      Inexhaustible

  • 16. 
    The economic system based on private or corporate ownership of, production and distribution is?
    • A. 

      Socialism

    • B. 

      Capitalism

    • C. 

      Feudalism

  • 17. 
    This phrase means the government should not interfere in the economy
    • A. 

      Free enterprise

    • B. 

      Freedom speech

    • C. 

      Freedom of the press

  • 18. 
    Competition is a feature of
    • A. 

      Socialism

    • B. 

      Capitalism

    • C. 

      Feudalism

  • 19. 
    A form of socialism based on the writtings of Marx and Engels that predominated in the former Soviet Union and Eastern Europe at one time and predominates in China and Cuba is
    • A. 

      Feudalism

    • B. 

      Mercantilism

    • C. 

      Communism

  • 20. 
    Goods or services that are necessary for living such as food, clothing, shelter are
    • A. 

      Needs

    • B. 

      Wants

    • C. 

      Advertising

  • 21. 
    Goods and services that are not necessary for living such as toys, games, entertainment are
    • A. 

      Needs

    • B. 

      Wants

    • C. 

      Advertising

  • 22. 
    Many times people think they need things that they in face want due to the power of
    • A. 

      Scarcity

    • B. 

      Advertising

    • C. 

      Distribution

  • 23. 
    This is an important part of economics that helps insure people's needs and wants are met
    • A. 

      Scarcity

    • B. 

      Advertising

    • C. 

      Distribution

  • 24. 
    This refers to how many of a certain good or service are available for people to purchase
    • A. 

      Supply

    • B. 

      Demand

    • C. 

      Price

  • 25. 
    Which of these probably has the least affect how well a product sells?
    • A. 

      The quality of the product- how good it is

    • B. 

      How well it is advertised

    • C. 

      Where the employees went to school

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