question

*there are few barriers to entry into the market

answer

Perfect competition

question

Which market structure has the largest number of suppliers

answer

Perfect competition

question

Mr. Simpson is liable for all the debts of his company. What type of business organization is this

answer

Sole proprietorship

question

Columbia tires and pacific tire together control 75% of the tire market in the country. What type of market structure?

answer

Oligopoly

question

A corporation is least likely to have which advantage

answer

Establishment of price ceilings

question

If a drug company is granted a patent on a new medication what result is possible

answer

A monopoly in the production of that medication

question

The market demand curve for a firm operating under perfect competition is

answer

Perfectly horizontal

question

In a business organization, the splitting of management and ownership into two distinct functions is an example

answer

Corporation

question

An unincorporated business owned by a single person, which may or may not have employees is an example of

answer

Sole proprietorship; it's an unincorporated business owned by a single person like your cousins lawn mowing business

question

Jorge and Fred have a product they would like to sell, they decide to share the risk and profits by forming an unincorporated business. What have they formed?

answer

Partnership because they share the risk and profits

question

Many city governments grant operating licenses to a specific cable television company. This license to be the only cable provider is called an?

answer

Monopoly

question

Best economic definition of pure competition

answer

The market is not dominated by either buyer or sellers

question

Many companies sell different types of cell phones. Some consumers prefer to use a specific brand because of it's different kind of features this is an example of

answer

Monpolistic cpmpetition

question

One of the best measures of success for businesses and their entrepreneurs is

answer

Profit

question

Money can be easily converted into goods or services this is an example of which function of money

answer

Medium of exchange

question

According to a recent census which business organization is the most common in the us even though it is relatively insignificant in total sales

answer

Individual proprietorship

question

For business and entrepreneurs, which of these is generally considered the best measure of success; net profit, total revenue, marginal cash, marginal revenue

answer

Net profit

question

A picture of coke and Pepsi what market structure

answer

Oligopoly; a business in which the products In a market are supplied by only a few dominant producers

question

A college student chooses cellular service based on the availability of a specific type of phone

answer

Monopolistic competition; many consumers and producers in a given market and the consumer believes that there are non price diffrenece a so he chooses the one with better service

question

Money that individuals receive from businesses return to business in

answer

Product market

question

But productive resources from resource markets

answer

Businesses

question

Producers sell goods and services to consumers

answer

Product market

question

Businesses sell goods and services on

answer

Product markets

question

Resource markets are least likely to sell; land, capital, labor, goods and services

answer

Goods and services

question

What is meant by the statement "money is a medium of exchange"

answer

Money can be traded for goods and services

question

Rappers lil cheez offers to write in exchange to appear in a show of mrs t this is an example of

answer

Bartering; an exchange of goods and services for other goods and services

question

In the most basic type of economic system, the trading of goods and services occurs without the use of money. This is called?

answer

Bartering

question

Households earn income from the factor market and businesses earn revenue from the product market

answer

...

question

Which type of market typically produces the highest level of output at the lowest price to consumers

answer

Perfect competition

question

I'm what type of market are firms considered price takers because they take the price in the market and have no control over setting the price

answer

Perfect competition

question

It is often more efficient and cheap for consumers if resources like electricity and natural gas are produced and delivered by very few competitions. Such natural monopolies are examples of

answer

Economies of scale

question

The primary reason that natural monopolies are allowed to exist in areas such as energy production is

answer

It is more efficient for society to allow one company to be in control

question

Which choice does not describe a basic function of money; a medium of exchange, a measure of value, a store value, traded item

answer

Traded item

question

A farmer sells a truck load of grain for 1000$ he then takes the cash to the credit union and buys a certificate of deposit to be used in case his later harvest isn't profitable what function of money is this

answer

Store of value

question

Marketing slogan best illustrates price comp

answer

Low price guarantee

question

Today only buy and item get free shipping what competition

answer

Non price comp

question

How can firms engage in non price comp

answer

Coupons and convenient locations

question

Best describes a benefit of a natural monopolies like utilities

answer

Natural monopolies can provide services in areas not served by other firms

question

Which markets compete in non price comp

answer

Monopolistic comp and oligopoly

question

Which market has no comp

answer

Monopoly

question

Why is there no competition in monopolies

answer

No close substitutes

question

Which market model is there a very large number of firms offering same goods and helps lower costs and prices

answer

Perfect comp

question

What industry comes the closest to being purely competitive

answer

Wheat

question

A type of business organization where the business is recognized as a legal entity with the right to sell stock

answer

Corporation

question

This is a market where a few large suppliers control supply of a product

answer

Oligopoly

question

A non profit cooperative that accepts deposits makes loans and provides financial services

answer

Credit union

question

Capital

answer

This is the equipment and factories used in the production of goods and services

question

Currency

answer

The paper money and coins that make up the money supply of a nation

question

Entrepreneur

answer

A person who takes the risk of a new business enterprise

question

Gross domestic product

answer

The total value of all the goods and services produced within a country in a given year

question

Specialization

answer

This is when each worker performs a specific task in production

question

Free trade

answer

This the practice of goods being traded between countries without any (or with reduced) tariffs that might slow down trade

question

Tariff

answer

This is a tax on imported goods and is usually designed to protect domestic production on similar goods

question

Labor

answer

This is one of the three main factors of production. It is the measure of the work done by people

question

Balance of trade

answer

This is the difference in the monetary value of exports and imports for a country

question

Trade

answer

This is the voluntary exchange of goods and or services

question

Trade barrier

answer

This is a restriction to regulate international commerce

question

Quota

answer

This is a type of protectionist trade restriction that sets a physical limit on the quantity of a good that can be imported into a country in a given period of time

question

Command economy

answer

Decisions are centralized, production is controlled by gov, prices are regulated

question

Market economy

answer

Decisions are made by individuals, production is controlled by private firms, prices are determined by supply and demand

question

Mixed economy

answer

Brazil traded with the us more than it does with any other country. Industrially the private sector has made Brazil one of the most advanced countries In Latin America, with massive investment taking place since 1996, still over 1 million people live in state owned housing and millions more are covered by gov operated health care. These facts show that Brazil has what economy?

question

Both parties gain as a result if voluntary exchange

answer

When an individual specializes to produce one good and then acquires additional desired goods from other specialists,

question

To make a profit

answer

The most likely incentive for entrepreneurs to start a new business is

question

Opportunity cost

answer

Marginal benefit: a gain from an increase or loss from a decrease in the consumption of a good or service. Marginal benefit is most related to what economic concept?

question

Buying new equipment

answer

Which of these best represents capital investment for a company

question

Decentralized decision making results in buyers and sellers freely engaging in commerce

answer

New e commerce businesses, including companies like eBay, focus on voluntary exchange. Which generalization best describes this type if commerce?

question

A way to measure the economy's performance is to measure categories of national...

answer

income. Economists use GDP and national income to show the performance of the economy

question

Which of these ULTIMATELY controls the money supply in the United States?

answer

Federal Reserve ultimately controls the money supply in the United States.

question

What is one way the government CANNOT influence income redistribution?

answer

Open Market Policy is a monetary policy of the Federal Reserve, and is therefore not a function of the government's fiscal policy for income redistribution

question

In a free-enterprise economy, the LEAST LIKELY effect of economic growth would be...

answer

increase in poverty levels

question

The economy is experiencing negative GDP growth and high unemployment. Which fiscal policy action should the government implement in an attempt to fix this problem?

answer

increase spending

question

Inflation is expected to be high for the foreseeable future, you expect to have stable employment, and you would like to borrow money to buy a house. All else equal, a savvy economics student would

answer

borrow the money, knowing that the payments would be made with increasingly cheaper dollars.

question

State governments often decide to place a "sin tax" on specific products or goods, like alcohol and tobacco. Which rationale is LEAST LIKELY to encourage governments to adopt a "sin tax"?

answer

While it is true that "sin taxes" disproportionally affect lower income groups, this is not a reason that governments would want to adopt them.

question

In which situation might GDP (gross domestic product) NOT be an accurate indicator of the health of a country's economy?

answer

The country has suffered a disaster and is receiving financial aid from overseas. In this situation, the availability of money for purchasing goods and services may not accurately reflect economic growth in the country.

question

What would MOST LIKELY happen if the Federal Reserve decided to increase the reserve requirement in banks?

answer

The amount of money circulating in the economy would decrease.

question

In the graph, the year with the highest unemployment rate is 1983. What was the approximate unemployment rate in that year?

answer

10.2%

question

Under which economic system would factors of production MOST LIKELY be owned by the government?

answer

command economy. Committees and departments decide what will be made, how it will be made, how much it will cost, and all of the other decisions that are usually made by private firms in a market economy.

question

How does this map relate to the distribution of natural resources for countries such as South Africa?

answer

South Africa is rich in gold, and they need to learn to mine gold effectively in order to trade for other resources from other African countries.

question

An opportunity cost is

answer

the next-best alternative you give up in order to do something else.

question

In a market economy, prices are established by

answer

the interaction of supply and demand

question

Increased education and training within a nation will most likely result in

answer

an increase in Gross Domestic Product (GDP)

question

As one of the factors of production, capital can be defined as

answer

the equipment and factories needed to produce goods

question

Which statement describes an opportunity cost that could result from the government regulating businesses?

answer

Government regulations can lead to an increase in production costs.

question

Mr. Green is opening a new bakery. He has purchased an industrial oven which can accommodate twenty loaves of bread at a time. This oven represents which factor of production?

answer

capital

question

In order to decrease fuel consumption in the US, the EPA (Environmental Protection Agency) has raised standards for fuel efficiency on cars sold here. One economic assumption made by the EPA is that, since our economic system is mostly market based,

answer

The EPA can assume that consumers will shop for more fuel-efficient cars, which means that the car makers will have a market for the newer, more efficient, vehicles.

question

Which of these terms is the BEST synonym for the word "entrepreneur"?

answer

"business owner", a person who undertakes the responsibility of owning a business.

question

If the government decided to subsidize the production of bobble-head dolls

answer

the supply curve will shift to the right. A government subsidy will reduce production costs. Because of this, suppliers would be willing to produce more items.

question

In the product market,

answer

producers sell goods and services to consumers.

question

What would be the situation if the price was moved from p2 to p3?

answer

there would be a shortage of widgets

question

Demand for orange juice increases at the same time that the supply decreases. Which of these could explain that scenario?

answer

Consumers hear of the benefits of vitamin C contained in oranges, while citrus farmers suffer from a severe frost.

question

These changes would MOST LIKELY have which impact on the market?

answer

supply would decrease

question

What is the name of the point at which supply and demand intersect?

answer

equilibrium

question

Which of these is MOST LIKELY a result of apartment rent controls?

answer

shortage of apartments

question

One of the BEST measures of success for businesses and their entrepreneurs is

answer

profit

question

The diagram shows the circular flow of goods and resources. What is the primary purpose of this chart?

answer

It shows how households and businesses interact in a market economy.

question

Which type of market typically produces the highest level of output at the lowest price to consumers?

answer

perfect competition

question

Which effect of high inflation might make it difficult for students to pay for college?

answer

High interest rates

question

In this passage, what would make Gary's transaction non-beneficial?

answer

if the car had actually been in a wreck

question

Who benefits the MOST during periods of unexpected inflation?

answer

banks who are collecting on loans with adjustable interest rates. Adjustable rate loans have an interest rate that will rise with inflation; therefore, the banks collecting those loans will be able to keep the interest rate rising with the rate of inflation.

question

The Federal Reserve institutes a tight monetary policy in order to reign in inflation. What is a likely consequence of such action?

answer

The unemployment rate will rise Tight monetary policies aim to fight inflation. These policies restrict the amount of money in circulation. A consequence of not having as much money available would mean that some businesses would not have access to loans that would help them pay workers.

question

Andre creates a budget for himself. He would like to buy a new video game each month, but doesn't have enough money to do so in his current budget. Which parts of Andre's budget could he increase to have enough money for the new video game each month?

answer

income

question

In the business cycle model, a recession is MOST LIKELY

answer

a recession is MOST LIKELY a period during which the real GDP decreases for two quarters in a row. A prolonged recession is called a "depression."

question

Overall levels of income, employment, and prices are determined by the spending and production decisions of all of the following EXCEPT

answer

net imports. Overall levels of income, employment, and prices are determined by the spending and production decisions of all of the following EXCEPT net imports. Net exports are included with businesses, households, and government.

question

The United States increases its imports from Europe. What will be the effects on relative value of the Dollar and the Euro on the currency exchange market?

answer

The relative value of the dollar will depreciate and the euro will appreciate. The US will demand more European products, will drive the demand of the euro up and the demand of the dollar down.

question

Fiscal policy affects which two parts of aggregate demand directly?

answer

Government spending and consumption affect aggregate demand directly. Aggregate demand is the same as GDP. The components of GDP that are affected directly are government spending and consumption.

question

When a person agrees to a regular, fixed payment of wages over a period of time, he/she agrees to earn a

answer

A salary is an income that is paid out regularly over an agreed-upon time. It differs from a wage in that a wage is usually given based on hours worked. Salaries are most always fixed, regardless of the amount of time the employee works.

question

Which statement would MOST LIKELY be claimed by the author of this passage?

answer

Based on the discussion of high trade costs, the presence of numerous tariffs, and problems with customs procedures and duties it is clear that the author feels that man-made trade barriers are the biggest challenge facing Africa's international trade success.

question

What would be reasonable monetary policy during a period of high inflation?

answer

reduce the money supply. put downward pressure on prices as investment and spending slows.

question

The European Union was created specifically for what purpose?

answer

to encourage free trade. The elimination of trade barriers- such as quotas and tariffs- was key to making sure European nations could trade easily with on another.

question

Which item is NOT a means to finance government spending?

answer

Government subsidies

question

A technology company needs 10 workers experienced in a newly developed programming language. Plenty of applicants express interest in the job; however, only three have the necessary education and experience to complete the work. The remaining unemployed individuals are an example of ___ unemployment.

answer

structural unemployment because there is a mismatch between the good (qualified) workers looking for jobs and the vacancies available.

question

How does the Federal Reserve achieve these goals?

answer

Raising and lowering short-term interest rates is one of the monetary policies that the Federal Reserve can use to help stimulate the economy. Taxation and government spending are fiscal policies that the government can use. Minimum wage is a price floor to raise the standard of living.

question

The federal government decides to offset a $50 billion decline in business spending. The government could spend $50 billion directly on projects, or it could reduce tax rates by the same amount. Whether the action taken by the federal government is direct or indirect, the result is MOST LIKELY

answer

a higher federal deficit.

question

Taxes are a form of government revenue. Which of these is a tax source?

answer

personal income is a tax source.

question

These would change WHAT part of the market?

answer

supply

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