question

The branch of economics that deals with human behavior and choices as they relate to relatively small units like an individual or a single market

answer

microeconomics

question

The branch of economics that deals with the human behavior and choices either late to the entire economy is called

answer

Macroeconomics

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Government controls and may own many of the resources

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Socialism

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Innovations such as the internal combustion engine steamship telephone and telegraph and computer are called advances in what

answer

Technology

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Work done for a company by people who live in other countries it's called

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Off shoring

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Firms that experience profits and losses as well as firm standing on the sidelines all receive

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Signals

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And ethical economic system________________________producers according to how they respond to the preferences of the buying public

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Rewards and punishes

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fewer innovations would be available without the incentive of potential

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Profit

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a public good that individuals can be physically prohibited from consuming is a

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Excludable public good

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States that as prices increase the quantity that buyers will purchase will decrease

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Law of demand

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When you experience adverse effects of another's at it is called

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Negative externality

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Something for which the demand remains unchanged as income rises or falls

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Neutral good

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Between two factors exist when the factors moving the same direction for example when one rises the other rises

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Direct relationship

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A graph that shows the amount of a good sellers are willing and able to sell at various prices it's called

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Supply curve

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Refers to the willingness and ability of sellers to produce and offer to sell different quantities of a good different prices during a specific time.

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Supply

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The price in a market that indicates that the quantity buyers are willing and able to buy is equal to the quantity that sellers are willing and able to produce and offer for sale is called

answer

Equilibrium price

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When the quantity demanded of a good is greater than the quantity supplied

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Shortage exists

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Anything of value to which a firm has legal claim is considered a

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Asset

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Total cost divided by quantity of output

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Average total cost

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Economists characterized the businesses into------------_which are defined by characteristics such as the amount of competition the ability to set price and these of entry

answer

Market structures

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Occurs when one firms low average costs or one firms exclusive ownership of a resource prevents competition

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Natural monopoly

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The market structure that consists of one seller selling a product that has no close substitute is called

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Monopolistic market

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Form when firms decide to act in a coordinated way to reduce the competition among them and raise their profits

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Cartel agreement

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Result of request for workers as a result of increasing popularity of a good or service

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Derived demand

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And organization that seeks to increase the wages and improve the working condition of its members is a called a

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Labor union

question

Incentives can be both positive and negative

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True

question

Because scarcity exist people must choose between alternatives

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True

question

one of the trade-offs of driving our cars is additional pollution

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True

question

If an All-American college basketball player decides to complete his senior year in college rather than sign a contract with the national basketball Association is opportunity cost would be the dollar amount of the contract he chose not to sign

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true

question

It is critical to free enterprise for the government to create a plan that specifies the direction economic activities are to take

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False

question

In free enterprise economy's people who are willing and able to pay the price for goods get them

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True

question

In a free enterprise economy the government decides what goods will be produced

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False

question

In a free enterprise economy firms like Microsoft decide what Goodvale produce for consumers

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True

question

Buyers are more responsive to price changes for goods on which they spend a larger percentage of their income

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True

question

The law of demand states that consumers will buy more of a product at lower prices

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True

question

Consumers are price-sensitive to all product therefore all products are elastic

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False

question

Do to elasticity of demand a sold-out concert guarantees that total revenue is maximized

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False

question

The reason you don't see scalpers at Starbucks is because there are laws to prohibit scalping coffee

answer

False

question

Supply and demand go together to determine price

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True

question

Price controls bring about more exchange then would exist without them

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False

question

Producers should continue to produce next unit even if the difference between the marginal cost and marginal revenue is one penny

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True

question

Sellers who produce identical products produce the quantity of output and which marginal revenue equals marginal cost

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True

question

Profit in the market act as a signal to new firms to enter the market

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True

question

The cereal market is a monopolistic competitive market

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False

question

Once a cartels forms it is unlikely to dissolve

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False

question

A pharmaceutical company may have a copyright on the medicine which protects it's company from competitors for a period of time

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False

question

Some firms exist as one of ballistics because they have an average total cost so low that other firms can't compete with them

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True

question

Supply and demand usually determine the price of labor

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true

question

Measuring a person's wage rate in terms of what it buys gives us the person's real wage

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True

question

Today 40% of all workers are members of unions

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False

question

Rationing exists because of

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Scarcity

question

The opportunity cost of something is

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What you give up to get that item

question

The marginal cost of something is

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The cost to produce one additional unit

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As opportunity cost of college increases compared to the benefit a person is

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Less likely to attend college

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A production possibilities frontier shows

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All possible combinations of two goods an economy can produce

question

Labor refers to

answer

Physical and mental talents

question

Which of the following groups is faced with scarcity

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Individuals businesses and society

question

Opportunity cost is most similar to

answer

A trade-off

question

Opportunity cost could be described as

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Your second choice

question

When a society spends money on national defense there is

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A trade-off since that money cannot be used for a school or a bridge

question

in economics the opportunity cost of something is

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What you give up to get the item

question

The cost of going to college is

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Whatever the student would have been doing is not attending college

question

On the accompanying production possibilities graph which points are feasible

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A B C D E

question

On the accompanying production possibilities graph which point represents the maximum production of snowboards

answer

A

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Economics believe that the British troops probably wore bright red uniforms due to the important economic concept of

answer

Opportunity cost

question

Price

answer

Allocate products to those who are willing and able to buy

question

Mandatory seatbelt laws have

answer

Saved lives cost lives and impacted driver behavior

question

Resources are owned and controlled by private individuals in what type of economic system

answer

A free enterprise or market economic system

question

With globalization the world is moving toward

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One large economy

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According to this textbook there is a strong relationship between life expectancy and

answer

Globalization

question

Off shoring refers to

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Work done for a company by people who live in other countries

question

Karl Marx is best known for writing

answer

das kapital

question

Adam Smith believed

answer

people's actions are led by an invisible hand

question

Globalization leads to

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Closer connections between countries through trade

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Globalization began to occur

answer

In the mid-1800s to the late 1920s

question

Economics believe that people respond to

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Monetary incentives

question

A circular flow diagram shows

answer

Relationships in the economy

question

On the circle flow diagram tax dollars flow to the government from

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Households and businesses

question

The amount of money that a business receives from the sale of its production is called

answer

Total revenue

question

Which of the following is a private good

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Bicycle

question

A person who receives the benefits of a good without paying for it is called

answer

Free rider

question

And externality exist when

answer

One person's actions affect another person

question

Positive externalities occur when one person's actions

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Beneficially affect another person

question

The controversial Supreme Court case kelo vs. new London was about

answer

Private property

question

In the United States laws have been developed to

answer

Regulate banking

question

The circular flow has two loops what do they represent

answer

The flow of goods and services and the flow of dollars

question

Profits and losses are signals to

answer

Firms earning the profits and taking losses and firms standing on the sidelines

question

Which document does not specifically contain free enterprise economic principles within it

answer

Das Kapital

question

A free rider is a person who

answer

Receives the benefit of a good but doesn't pay for it

question

Businesses prefer to produce

answer

Excludable public goods

question

A good is excludable if

answer

People can be prevented from using it

question

Which of the following is an externality

answer

The neighbors dog barking pollution from a local factory and a neighbor landscaping his yard

question

The government can minimize the negative externalities in society through

answer

The court system regulation and taxation

question

A market is any place

answer

Where buyers and sellers meet

question

Demand curves

answer

Slope downward from left to right

question

If demand for a good is elastic and it's price decreases total revenue

answer

Goes up

question

Which of the following will not change the demand for the product

answer

A change in price of the product

question

A normal good

answer

Will be higher in de if a person's income increases

question

A change in quantity demanded can be caused by

answer

Price

question

On my demand curve a change in quantity demanded is represented by

answer

A movement along the curve

question

Quantity supplied refers to

answer

The amount supplied at a particular price

question

If sellers do not respond to a change in price supply is

answer

inelastic

question

The word supply refers to

answer

The willingness and ability to produce a good

question

The supply curve of one of Pablo Picasso's paintings would be shown as

answer

A vertical line

question

Quantity supplied changes because of

answer

A change in price

question

Elasticity of supply is measured by looking at the relationship between

answer

How much the quantity supplied responds to changes in the price of the good

question

In the equation for elasticity of supply when the numerator is larger than the denominator we know that

answer

Supply is elastic

question

Which of the following supply curves demonstrates inelastic supply

answer

A vertical supply curve

question

If the percentage change in price is equal to 50% and the percentage change in quantity supplied is 25% the elasticity of supply is

answer

inelastic

question

which of the following is true when there is a shortage in the market

answer

Prices may rise

question

If there were a shortage of nurses we would expect

answer

The wages of nurses to increase

question

Equilibrium can be expressed as

answer

Qd=Qs

question

At the equilibrium price which of the following is true

answer

Buyers and sellers are satisfied, buyers have bought everything they wanted to buy, and the sellers have sold everything they wanted to sell

question

When there is a surplus in the market which of the following is true

answer

Prices may fall

question

Which graph illustrates what would happen if Candy producers are informed that the cost of sugar has doubled

answer

Graph D

question

Which graph reflects the impact on the market for drinking water as the result of a hurricane that hits Florida

answer

graph a

question

Which graph reflects the impact on the market for VCRs as consumers purchase more and more DVDs

answer

graph b

question

In which two of the graphs did a shortage occurred because of the shift in demand and supply

answer

Graphs a and D

question

In the accompanying graph which area shows a shortage

answer

Area three

question

A business organization that can conduct business in its own name and can own property as if it were an individual is a

answer

Corporation

question

The owners of a corporation are

answer

It's stockholders

question

When deciding whether or not to increase production a business owner should carefully consider

answer

The marginal cost of additional units

question

Which of the following is a fixed cost

answer

Rent

question

Shirking occurs because

answer

People value leisure

question

The disadvantages of proprietorship include unlimited liability limited ability to raise funds for expansion and

answer

Limited life of the business

question

Which of the following business organizations combines two or more people's specializations with equal decision-making authority

answer

Partnership

question

The disadvantages of a partnership include

answer

Shared decision-making, unlimited liability, and limited life

question

Marginal revenue equals

answer

The change in total revenue divided by the change in the quantity of output sold

question

The cost to affirm that changes according to the number of units produced is the

answer

Variable cost

question

The cost to produce one additional unit is called

answer

Marginal costs

question

Total cost divided by quantity produced equals

answer

Average total cost

question

Marginal cost is equal to

answer

The change in total cost divided by the change in quantity of output

question

What are two critical pieces of information needed before a firm can decide how many units to produce

answer

Marginal cost and marginal revenue

question

When only a few producers and their products dominated industry the market structures called

answer

oligopolistic

question

A major difference between perfectly competitive markets and monopolistic competitive markets is that with monopolistic competition

answer

Products are different not identical

question

In the soft drink industry if two companies account for about 80% of sales in the market would be considered

answer

oligopolistic

question

Firms protected from competition by public franchises patents or copyrights are called

answer

Government monopolies

question

Antitrust laws are designed to

answer

Increase competition

question

In 1890 Congress passed an act that reduce the ability of companies to restrain trade by merging and forming a trust the act is called the

answer

sherman act

question

For a firm to practice price discrimination it must

answer

Find a way to determine which consumer is willing to pay more than the other

question

When deciding between jobs people consider

answer

The salary, the vacation time, and their satisfaction with the work

question

The demand for labor could decrease if

answer

There is a decrease in demand for the products that workers make

question

Minimum wage is

answer

A government set wage floor

question

The American Federation of labor (AFL) and the Congress of industrial organizations (CIO)

answer

Merged in the 1950s

question

Government regulations

answer

Protect workers against occupational injuries and illnesses, specify minimum standards for potentially unsafe products, and increase cost to taxpayers

question

If the quantity supplied of labor is more than the quantity demanded then,

answer

The wage rate falls

question

Derived demand for labor would exist when

answer

There is an increase in demand for the product

question

Typically union members earn more then nonunion workers with similar skills by

answer

10 to 15%

question

The Wagner act of 1935

answer

Requires employers to bargain with unions in good faith and made it illegal for employers to interfere with their employees right to organize or join a union

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