APEX Econ 2.3 – Flashcards
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Which of the following accurately explains how profit is calculated?
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Costs are subtracted from revenues
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Which of the following explains how revenue is determined?
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The total amount of money brought in by sales
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Which of the following directly generates revenue for a business?
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Output
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Which of the following is the main force behind the decisions made by producers in a free-market society?
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The profit motive
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Which of the following best explains what the profit motive pushes producers to do?
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Minimize costs and maximize revenue
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Which of the following identifies the reason why producers try to minimize costs and maximize revenue?
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The profit motive
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Which of the following tools helps a producer set up an efficient system of production?
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A production possibilities frontier graph
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Which of the following best states the purpose of using a production possibilities frontier?
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Setting up efficient production
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Which of the following statements best explains how using a production possibilities frontier (PPF) helps set up efficient production?
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A PPF shows the maximum amount of goods that can be produced with a given set of inputs
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Which of the following are possible market structures for an economic system?
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Oligopoly, Monopoly, Pure Competition
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Which of the following are market structures that can exist in a free-market system?
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Monopolistic Competition, Oligopoly, Pure Competition
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Which of the following are market structures that are characterized by at least some competition between producers?
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Pure Competition, Monopolistic Competition, Oligopoly
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Which of the following describes a situation where competition between producers exists?
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Two or more producers are trying to sell the same good or service to the same consumers
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Which of the following describes a situation where monopolistic competition exists?
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When many producers are selling slightly differentiated products
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Which of the following best describes a situation where an oligopoly exists?
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A small number of producers command nearly the entire market for a certain good or service
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Match the type of market structure with each example. A. Pure Competition B. Monopoly C. Monopolistic Competition D. Oligopoly
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A. eBay B. Cable Company C. Gas Stations D. Airlines
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Match the type of market structure with each example. A. Pure Competition B. Monopoly C. Monopolistic Competition D. Oligopoly
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A. Online auctioning B. Water and Sewage service C. Video Rental stores D. Digital Camera Makers
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Match the type of market structure with each example. A. Pure Competition B. Near Monopoly C. Monopolistic Competition D. Oligopoly
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A. Online actioning B. Computer operating syatems C. Fast food resturants D. Car makers
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Which of the following does not motivate entrepreneurs?
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Security
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Innovation is a characteristic most strongly associated with which of the following groups?
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Entrepreneurs
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Entrepreneurs do not use which of the following to introduce innovations into a market?
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New economic systems
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Which of the following are sources of revenue for media companies?
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Advertising and subscriptions
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Which of the following is the main source of revenue for media corporations?
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Advertising
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Advertising is the main source of revenue for which of the following industries?
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Media
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Which of the following best explains why companies pay for advertising space?
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To expose an audience to messages about their products
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Which of the following statements best describes what purchasing advertising space does for advertisers?
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Advertising space exposes a company's products to an audience of potential customers
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Which of the following statements best explains the purpose of advertising?
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Advertising is about buying the attention of an audience of potential consumers
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The media industry is characterized by which of the following?
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Centralization of ownership
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Nearly all of the media industry is controlled by which of the following?
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A few large companies
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The media industry is dominated by which of the following?
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Media Conglomerates
