Question 1

In economic terms, "supply" is how much of something

Accepted Answer

In economic terms, "supply" is how much of something is available on the market, regardless of whether or not people want or need it. It refers to the quantity of a product or service that producers are willing to provide at a certain price.

Question 2

A(n) ________ relationship exists between supply and demand.Therefore, when supply is high, demand is _____.

Accepted Answer

The statement indicates an inverse relationship between supply and demand, meaning that as supply increases, demand decreases. Therefore, when supply is high, demand is low. Choice C is the only option that reflects this relationship.

Question 3

-On the classical supply-demand graph, ________ is highest when prices are low.

Accepted Answer

Demand is typically highest when prices are low because consumers are more willing to purchase goods or services at lower prices, leading to an increase in the quantity demanded.

Question 4

The economic theory that was originally focused on how the interests and values of individuals relate to larger societal goals is the ______ economic theory.

Accepted Answer

The Classical economic theory, particularly associated with Adam Smith’s book “The Wealth of Nations,” was focused on how individual self-interest and competition could lead to the most efficient allocation of resources and promote economic growth for society as a whole. It emphasized the importance of free markets, minimal government intervention, and the invisible hand of the market.

Question 5

Which of the following is considered social capital?

Accepted Answer

The answer of Which of the following is considered social...

Question 6

-Using the supply-demand graph, what happens as the price of goods or services increases?

Accepted Answer

As the price of goods or services increases, demand typically falls because fewer people are willing to or can afford to buy the product at higher prices. Conversely, supply increases because producers are more willing to make and sell more of the product at higher prices. This is a fundamental principle of economics where price and quantity demanded are inversely related, and price and quantity supplied are directly related.

Question 7

When we purchase a product, the price we pay directly reflects the _____ cost of producing it.If the manufacture of the product degrades the quality of air or water, then the costs of this pollution are termed _____ costs.

Accepted Answer

When we purchase a product, the price we pay directly reflects the internal cost of producing it. If the manufacture of the product degrades the quality of air or water, then the costs of this pollution are termed external costs.

Question 8

In economic terms, "demand" is how much of something

Accepted Answer

Demand refers to how much of a product or service consumers are willing and able to purchase at a given price. It is based on desire (want) and affordability (ability to buy), and is influenced by a variety of factors such as price, income, consumer tastes and preferences, and market competition. Therefore, the correct option is C, "People will buy at current prices".

Question 9

_______ is a nonrenewable resource.

Accepted Answer

Coal is a nonrenewable resource as it takes millions of years to form and cannot be replenished in a human lifetime. Scientific technology, hydroelectric power, biomass, and solar energy are forms of energy sources, but they can be renewable or nonrenewable depending on how they are accessed and utilized.

Question 10

Ecological economics is different from the other economic theories because it recognizes the

Accepted Answer

The answer of Ecological economics is different from the other...

Question 11

Ecology and economy are both derived from the Greek word "Oikos" meaning

Accepted Answer

Both ecology and economy are derived from the Greek word "Oikos" which means household. Ecology is the study of the household of living organisms and their relationship with the environment, while economy is the management of the household's resources and finances.

Question 12

Natural capital is that which is created by

Accepted Answer

Natural capital is defined as the world's stocks of natural assets which include geology, soil, air, water, and all living organisms. Therefore, natural capital is created by natural Earth processes, such as photosynthesis, weather patterns, and geological processes, and not by industrial processes, human labor or animal labor.

Question 13

-On the supply-demand graph, market equilibrium is marked

Accepted Answer

Market equilibrium on a supply-demand graph is the point where the supply curve intersects the demand curve, indicating the price and quantity at which the market is balanced, with supply equaling demand.

Question 14

Political economy theory incorporates ______ while neoclassical economic theory incorporates _________.

Accepted Answer

Political economy theory takes into account the social structures and value systems that impact economic decisions and outcomes. Neoclassical economic theory, on the other hand, emphasizes objectivity and scientific analysis as the most relevant factors in understanding and making economic decisions.

Question 15

An example of an intangible resource is

Accepted Answer

Intangible resources are non-physical assets that cannot be touched, seen or quantified but they offer value to an organization. Satisfaction is a mental or emotional state which cannot be physically touched or seen but is of great value to businesses as happy customers lead to better sales and reputation for the company.

Question 16

Which of the following is considered human capital?

Accepted Answer

Human capital refers to the knowledge, skills, and abilities possessed by individuals that contribute to their productivity and earning potential. Therefore, knowledge of history is an example of human capital. The other options are physical or natural resources and are not considered human capital.

Question 17

When a factory pollutes a river, the costs and losses that affect people downstream would be called ______ costs.

Accepted Answer

External costs refer to the costs that affect people who are not directly involved in the production or consumption of a good or service. In this case, the factory is causing pollution that affects people downstream who are not directly involved in the production process.

Question 18

Price inelasticity is when _________ while price elasticity is when __________.

Accepted Answer

Price inelasticity refers to a situation where consumers continue to purchase a product regardless of its price (i.e. they are not sensitive to price changes). Price elasticity, on the other hand, is a measure of how responsive consumers are to changes in price. Therefore, Option D correctly defines these terms. Options A, B, C, and E are incorrect definitions.

Question 19

Which of the following is NOT true with respect to natural resource economics?

Accepted Answer

The answer of Which of the following is NOT true...

Question 20

Renewable resources are those that

Accepted Answer

Renewable resources are those that will always renew themselves unless we destroy them. Examples include solar, wind, hydro, and geothermal energy, as well as forests and fisheries if managed sustainably.

Quiz 23: Ecological Economics