ECON 101 ECON101 Week 4 Midterm with Answers (American Public University)

ECON 101 ECON/101 ECON101 Week 4 MIDTERM (APUS)

1. Economics is the study of:
2. Which of the following is not a central focus of the "economic perspective"?
3. The satisfaction or pleasure one gets from consuming a good or service is:
4. The private ownership of property resources and use of prices to direct and coordinate economic activity is characteristic of:
5. Which statement best describes a capitalist economy?
6. Capitalism is an economic system that:
7. In a market system, well-defined property rights are important because they:
8. If two goods are complements:
9. When the price of a product is increased 10 percent, the quantity demanded decreases 15 percent. In this range of prices, demand for this product is:
10. Demand can be said to be inelastic when:
11. Economic growth is shown by a shift of the production possibilities curve outward and to the right.
12. The four factors of production are land, labor, capital, and government services.
13. If demand increases and supply simultaneously decreases, equilibrium price will rise.
14. Property rights have a positive effect in a market economy because they encourage owners to maintain their property.
15. In the price range where demand is inelastic, a decrease in price will result in a decrease in total revenue.
16. Price elasticity of supply decreases the longer the time period.
17. Toothpaste and toothbrushes are substitute goods.
18. A government-set price ceiling will lower equilibrium price and quantity in a market
19. Under what elasticity conditions would the following be true?
20. The market for gasoline has changed in a couple significant ways over the last few years: new technologies have decreased the costs associated with producing gasoline, and automobiles are becoming more fuel efficient. Describe how these changes affect the supply of and demand for gasoline. What is the overall effect on equilibrium price?