Introduction to Economics — Unit test Answers

What is the relationship between aggregate demand and the price level?

This is a graph showing price and total output in the short and long run. According to this graph, how does supply behave in the long run?

Rabia does not currently have a job, but declined a job offer because she feels her skills merit better pay and a better position. Which terms can be used to describe Rabia? Select two options.

Which best describes how consumers may benefit from specialization?

How might a drop in price for washing machines affect the demand for dryers?

A consumer might respond to a negative incentive by

Typically, low inflation is a sign of

In pure competition, producers compete exclusively on the basis of

On a graph, an equilibrium point is where

What are the signs of high inflation? Check all that apply.

In microeconomics, what occurs when equilibrium is reached?

Which is an example of a negative incentive for producers?

Which aspect of monopolistic competition gives consumers more choice?

What is the difference between a price floor and a price ceiling?

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Brenda’s Boards manufactures skateboards. Each skateboard sells for $45 and includes the following expenses: $3 for the wheels and mounts, $1 for the plastic board, $1 for the paint, and $10 for the labor. What is the total revenue the company makes after selling 10 boards?

The equation calculates an annual rate in economics.What rate does the equation calculate?

When discussing comparative and absolute advantage, which best describes specialization?

The circle graph shows the GDP in Germany for 2012.Which sector of Germany’s economy had the highest GDP?

A factor that most directly affects the demand for automobiles is