ECON quiz 1- EXAM #1 Flashcards Preview

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Flashcards in ECON quiz 1- EXAM #1 Deck (11)
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1
Q

economics Definition

A

the study of how individuals and societies chose to use the scarce resources

2
Q

what will occur when there is a simultaneous decrease in demand and a decrease in supply

A

a decrease in equilibrium quantity

3
Q

the period in the business cycle from a peak to a trough is a

A

recession

4
Q

during an economic downturn when consume income falls, the demand for tacos increases and the demand for sushi decreases, this implies that tacos

A

are an inferior good and sushi is a normal good

5
Q

in economics, investment always refers to

A

the creation of new capital

6
Q

what will occur when there is an increase in the supply of and decrease in the demand for MP3 players?

A

a decrease in equilibrium price

7
Q

a higher price for batteries will result in a

A

decrease in the demand for flashlights

8
Q

good X and good Y are substitutes. if the price of good Y increases, then the

A

demand for good X will increase

9
Q

the overriding reason as to why households and societies face many decisions is that

A

resources are scarce

10
Q

fiscal policies regard

A

taxes

11
Q

gov policies regard

A

expenditures