(FLVS) Economics with Financial Literacy "Module One Exam"

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Based on the graph, what would happen if customers demanded 550 units of this product?
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The price would drop to 0.5.
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A console game, ZOMBIES!, has come out recently. It sells for $60. Which of these might lower the price of the game?
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A negative article about the game from a well-known reviewer, causing sales to drop
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When new technology for the more efficient production of peanut butter was implemented, the supply curve for peanut butter
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shifted to the right
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Which of the following addresses all three of the basic economic questions?
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You start your own restaurant serving Japanese food, you hire local teenagers to work at your restaurant as servers and cooks, and your restaurant specializes in serving the daily lunch crowd.
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Duane has a small woodworking business and saves the money for college. He stores his tools in his apartment. Duane would like to buy a utility trailer for his tools. It will cost $2,800. He creates a cost-benefit analysis table to examine his choices. What statement would best complete the chart, and why?
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He will not have as much money for college classes, because he will have to pay for the trailer and its maintenance.
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Bria pays $30 to a nonprofit medical organization to provide vaccines to those in need. She makes the donation in her mother’s name as a gift. Which statement best relates to Bria’s economic activity?
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Money functions as a medium of exchange.
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If the x-axis is Quantity and the y-axis is Price, what does the 85 in point (85, 5) represent?
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The quantity supplied at time 1
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You are in charge of your country’s currency, which is backed by a gold standard. Unfortunately, gold production is dropping sharply and is not expected to recover. What is your best option?
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Move to fiat currency.
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An increase in demand causes the demand curve to
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shift to the right
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Andy’s two nephews want to travel to Philadelphia with him to see a show. Andy has two free plane tickets and three tickets to the show. Which of the following best describes the two plane tickets?
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NOT “An opportunity cost”
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The supply and demand curves reflect the availability and cost of a new gaming system. If the gaming system market is currently at Demand and Supply 1, which change to the graph would have to occur to increase equilibrium price while lowering equilibrium quantity?
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Add Supply 2 to left of Supply 1.
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Your friend says your car is worth about 50 dollars. Your friend is using money as a
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measure of value
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Use the cost-benefit analysis table to answer the question below: Should Mrs. Baxter allow her students to take an open-book test?
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Student test scores should increase.
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Felicia knits scarves and sells them to her friends. The first week, she knits four scarves and sells three for $50 each. The next week she buys her yarn at a discount, so she knits six scarves and is able to sell five for $40 each. Which number represents quantity demanded at $40?
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Five
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Which statement best summarizes the graph, if P is price and Q is quantity?
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As the price rises, suppliers produce more of a product.
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The supply and demand curves show data for trendy smartphone covers. How would the graph change if the producer hired a popular actor as spokesperson for the product?
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Add D2 to the right of D, showing an increase in demand and increase in equilibrium price.
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Which may occur as a result of a decrease in the price of laptop computers?
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Increase in quantity demanded
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Use the above graph to answer the following question. Pretend this graph represents the market for books. Which situation would cause the graph to shift from line 1 to line 2?
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NOT ” A decrease in the price of book-binding glue “
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A doctor at Boston University partnered with a professor at Northeastern University to create a virtual support program for patients recently discharged from the hospital. How would they answer the economic questions For whom to produce? and What to produce?
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Patients and a virtual support program
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Which statement below best answers the economic question of for whom to produce?
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NOT ” Lady Zigzag’s agent makes concert tickets available on a new smartphone app “

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