Sharon Hayes ECON 202 Final
Study online at https://quizlet.com/_5r8dj4
1. Opportunity cost exists because The decision to engage in one ac-
tivity means forgoing some other
activity
2. The term "Other Things Equal" means The number of relevant variables
are assumed to be constant
3. Microeconomics Is a detailed examination of specif-
ic economic units
4. Production Possibilities Curve shows The various combinations of two
goods that can be produced when
society employs all of its scarce re-
sources
5. Shift the production possibilities curve from PP1
to PP2
6. Graphically, the market demand curve is The horizontal sum of individual
demand curves
7. A demand curve indicates the quantity demanded
at each price in a series of prices
8. The substitution effect When the price of a product rises,
consumers with a given money in-
come shift their purchases to oth-
er products whose prices are now
relatively lower.
, Sharon Hayes ECON 202 Final
Study online at https://quizlet.com/_5r8dj4
9. Which of the following will not cause the demand A change in the price of product K
for product K to change?
10. Assume that the demand curve for product C is A larger quantity of C will be de-
downsloping. If the price of C falls from $2.00 to manded
$1.75,
11. The law of supply indicates that, other things Producers will offer more of a
equal product at high prices than at low
prices.
12. Other things equal, if the price of a key resource supply curve of product X will shift
used to produce product X falls, the to the right
13. $1.00 and 200.
14. $1.60
15. The rationing function of prices refers to the Capacity of a competitive market to
equalize quantity demanded and
quantity supplied.
16. Which of the following will cause a decrease in an increase in supply
market equilibrium price and and an increase in
equilibrium quantity
17. increase in the price of complementary good Y
Study online at https://quizlet.com/_5r8dj4
1. Opportunity cost exists because The decision to engage in one ac-
tivity means forgoing some other
activity
2. The term "Other Things Equal" means The number of relevant variables
are assumed to be constant
3. Microeconomics Is a detailed examination of specif-
ic economic units
4. Production Possibilities Curve shows The various combinations of two
goods that can be produced when
society employs all of its scarce re-
sources
5. Shift the production possibilities curve from PP1
to PP2
6. Graphically, the market demand curve is The horizontal sum of individual
demand curves
7. A demand curve indicates the quantity demanded
at each price in a series of prices
8. The substitution effect When the price of a product rises,
consumers with a given money in-
come shift their purchases to oth-
er products whose prices are now
relatively lower.
, Sharon Hayes ECON 202 Final
Study online at https://quizlet.com/_5r8dj4
9. Which of the following will not cause the demand A change in the price of product K
for product K to change?
10. Assume that the demand curve for product C is A larger quantity of C will be de-
downsloping. If the price of C falls from $2.00 to manded
$1.75,
11. The law of supply indicates that, other things Producers will offer more of a
equal product at high prices than at low
prices.
12. Other things equal, if the price of a key resource supply curve of product X will shift
used to produce product X falls, the to the right
13. $1.00 and 200.
14. $1.60
15. The rationing function of prices refers to the Capacity of a competitive market to
equalize quantity demanded and
quantity supplied.
16. Which of the following will cause a decrease in an increase in supply
market equilibrium price and and an increase in
equilibrium quantity
17. increase in the price of complementary good Y
