ECON quiz 1- EXAM #1 Flashcards Preview

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

economics Definition

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

2

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

a decrease in equilibrium quantity

3

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

recession

4

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

are an inferior good and sushi is a normal good

5

in economics, investment always refers to

the creation of new capital

6

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

a decrease in equilibrium price

7

a higher price for batteries will result in a

decrease in the demand for flashlights

8

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

demand for good X will increase

9

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

resources are scarce

10

fiscal policies regard

taxes

11

gov policies regard

expenditures