Which of these best describes prices in a market economy?A. a signal for consumers to purchase lessB. a signal for producers to manufacture lessC. a set of compromises between buyers and sellersD. a set of compromises between the...
C. a set of compromises between buyers and sellers
an agreement to buy or sell at a specific date in the future at a predetermined price
futures
Which of these is the most likely to create a shortage of an item?A. a price floorB. a fixed priceC. a price ceilingD. a market price
C. a price ceiling
combination of firms producing the same kind of product
horizontal merger
Which of these statements is descriptive of a market economy?A. Most media is state-owned and operated.B. The government determines what is produced and by whom.C. Major economic decisions are made for individuals, not by them.D....
D. Major economic decisions are made by individuals, not for them.
Which of these is the most likely to create a surplus of an item?A. a price floorB. a fixed priceC. a price ceilingD. a market price
A. a price floor
a fundamental problem in every society
scarcity
currency backed by government bonds and issued by commercial banks in the National Banking System
national currency
The economic system of the United States is considered aA. free market capitalist economy.B. command economy.C. socialist economy.D. traditional economy.
A. free market capitalist economy.
situation in which a firm legally ceases to exist when an owner dies or quits, or when a new owner is added
limited life
A credit union is an example of aA. service cooperative.B. conglomerate.C. producer cooperative.D. consumer cooperative.
A. service cooperative.
According to the Law of Supply, which of these would happen to an item as its price rose?A. Producers would make less of it.B. Producers would make more of it.C. Producers would increase the price even more.D. Producers would lowe...
B. Producers would make more of it.
Name a similarity and a difference between these factors of production: land and capital.
A similarity between land and capital is that both are necessary for the production of goods and services. A difference between land and capital is th...
How does inflation affect the minimum wage?A. It increases the buying power of the wage.B. It decreases the buying power of the wage.C. It creates a conversion of the wage from current dollars to constant dollars.D. It creates a c...
B. It decreases the buying power of the wage.
Dave gets a job at a grocery store, which pays him an hourly wage in exchange for his labor. Dave is participating inA. entrepreneurship.B. human capital.C. the product market.D. the factor market.
D. the factor market.
type of elasticity in which the percentage change in the independent variable (usually price) causes a less than proportionate change in the dependent variable (usually quantity demanded or supplied)
inelastic
graph showing the quantity demanded at each and every possible price that might prevail in the market at a given time
demand curve
What have some states done to protect workers from adverse economic events such as layoffs?A. They set up support groups.B. They set up unemployment compensation programs.C. They provided every worker with insurance.D. They gave w...
B. They set up unemployment compensation programs.
Which is a likely complement to a cell phone?A. a cameraB. movie ticketsC. appsD. pencils
C. apps
a strategy of holding different kinds of investments to a minimize risk
portfolio diversification
In the mythical country Alpha, an entrepreneur has introduced a new technology that makes manufacturing twice as efficient as before. How is this likely to affect the production possibilities frontier?A. It would not change the fr...
C. It would expand the frontier.
Describe a situation in which a provider of a good or service could be reasonably certain that raising the price on an item would increase revenue
A provider of a good or service could be reasonably sure that raising the price on an item would increase revenue when they are the only company that...
When a business needs to decide whether a certain action is worth the cost, the most helpful analysis would be a(n)A. production possibility comparison.B. cost-benefit analysis.C. economic model.D. needs assessment.
B. cost-benefit analysis.
Which market structure is defined by a single producer?A. pure competitionB. monopolistic competitionC. oligopolyD. monopoly
D. monopoly
Which of the following statements best explains why workers began to form unions?A. A united workforce was more likely to bring about changes in the workplace.B. A well-organized system of workers was more likely to maximize profi...
A. A united workforce was more likely to bring about changes in the workplace.
To estimate elasticity, compare the _________ of a price change to the __________ of the change in total revenueA. amount, amountB. amount, directionC. direction, amountD. direction, direction
D. direction, direction
where all of the factors of productions are bought and sold
factor market
How would an economist characterize a local government increasing property taxes to improve the school system?A. laissez-faire in actionB. an example of collusionC. a cease and desist orderD. subsidizing a positive externality
D. subsidizing a positive externality
Protection from layoffs, illnesses, injuries or disabilities falls under the goal ofA. economic equity.B. economic efficiency.C. economic growth.D. economic security.
D. economic security.
movement along the demand curve showing that a different quantity is purchased in response to a change in price
change in quantity demanded
all partners are equally responsible for management and debts
general partnership
Equilibrium is reached when what occurs?A. quantity supplied equals quantity demandedB. there is no change in the quantity suppliedC. price increasesD. prices are inelastic
A. quantity supplied equals quantity demanded
A woman borrows money from a bank to purchase a house. She promises to give the bank the house if she cannot repay the loan. This woman has signed aA. foreclosure.B. mortgage.C. trust.D. cease and desist order.
B. mortgage.
Which activity is illegal in a state with a right-to-work law?A. joining a unionB. denying any qualified worker a jobC. requiring a higher hourly rate for overtime hoursD. requiring union membership as a condition of employment
D. requiring union membership as a condition of employment
Which statement describes the disadvantage of a command economy?A. Items tend to be produced solely for the sake of profit.B. It cannot change direction easily if the need arises to do so.C. It does little to help the less advanta...
D. Nothing stops the government from producing things that people don't need or want.
Which of these can be added to determine total costs?A. fixed costs and overheadB. marginal costs and overheadC. fixed costs and variable costsD. fixed costs and marginal costs
C. fixed costs and variable costs
form of stock without vote, in which stockholders get their investments back before common stockholders do
preferred stock
Which of these tends to force the price of an item downward?A. a surplus of that itemB. a shortage of that itemC. attainment of an equilibrium price for that itemD. attainment of an equilibrium quantity of that item
A. a surplus of that item
using social networking to appeal to potential investors
crowdfunding
a bank that receives its charter from the state in which it operates
state bank
What is the relationship between income and demand?A. A decrease in income increases demand.B. A decrease in price decreases income.C. An increase in price increases income.D. An increase in income increases demand.
D. An increase in income increases demand.
satisfaction or usefulness obtained from acquiring one more unit of a product
marginal utility
Give an example that illustrates the concept of opportunity cost.
You have to choose between going out with your friends or studying for a math test that you really need to study for. You choose to go out, so the opp...
reliance on others to produce goods and services we need
economic interdependence
Which of the following can cause market failure?A. too much mobilityB. too much competitionC. not enough informationD. too much information
C. not enough information
currency that must be accepted for payment by decree of government
legal tender
A can of soup is an example of aA. durable good.B. nondurable good.C. capital good.D. service.
B. nondurable good.
each worker learns one task very well
specialization
Which of these best describes the influence of high prices on the behavior of producers?A. They are an incentive for producers to produce more. B. They are an incentive for producers to buy less. C. They encourage producers to mod...
A. They are an incentive for producers to produce more.
Which would an economist consider a likely substitute for coffee?A. waterB. teaC. chickenD. donuts
B. tea
What purpose does a cost-benefit analysis serve?
A cost-benefit analysis evaluates the costs and benefits of various projects to find the one that has the highest ratio of benefits to costs. Also, it...
Labor in a factory is an example of which of these?A. a marginal productB. a diminishing returnC. a fixed factor of productionD. a variable factor of production
D. a variable factor of production
market economy in which people freely carry on economic affairs but are subject to some government regulation
mixed economy
The Sherman Act, the Clayton Act, and the Federal Trade Commission Act were all designed toA. ensure competition.B. promote trusts.C. create public goods.D. extend mortgages
A. ensure competition.
quality of life
standard of living
lender of investment funds to a start-up business in exchange for partial ownership of the business
venture capitalist
organization that works for its members' interests concerning pay, working hours, health coverage, fringe benefits, and other job-related matters
labor union
When two companies that produce the same kind of product merge, this is called A. horizontal merger.B. vertical merger.C. conglomeration.D. multinational merger.
A. horizontal merger.
Which statement is the best explanation of the market theory of wage determination?A. Management tends to pay a lower wage to workers who support unions.B. A worker's pay rate is set by supply of and demand for that worker's skill...
B. A worker's pay rate is set by supply of and demand for that worker's skills.
Which of these describes the effects of price floors on the U.S. sugar industry?A. They helped sugar farmers while increasing the price of sugar for the consumer.B. They helped sugar farmers while decreasing the price of sugar for...
A. They helped sugar farmers while increasing the price of sugar for the consumer.
What level of government is most closely associated with zoning?A. federalB. interstateC. stateD. local
D. local
Which of the following phrases best defines the term limited partnership?A. an organization that limits liability to the corporation rather than the individual ownersB.a partnership in which at least one partner has less responsib...
B.a partnership in which at least one partner has less responsibility in the business operations and less liability for business losses
Which product most likely has a demand that is inelastic?A. a meal at a restaurantB. green beansC. a vital medicineD. a vacation
C. a vital medicine
the portion of a change in quantity demanded caused by a change in price that makes other products more or less costly
substitution effect
food is an example of this
nondurable good
Which of the following explains why products made under a command economy are more likely to be low quality?A. The workers who make them have little incentive to make them well.B. The workers who make them are not given quality-co...
A. The workers who make them have little incentive to make them well.
Which of these is the most striking example of the costs and risks of pure capitalism?A. the GosplanB. the Five-Year PlanC. the Great DepressionD. the Great Leap Forward
C. the Great Depression
What three conditions are necessary for the market structure known as "pure competition" to exist?
The three conditions necessary for the market structure known as "pure competition" to exit are very large numbers, identical products, and freedom of...
movement that promoted the rights of buyers
consumerism
products related in such a way that an increase in the price of one reduces the demand for the other
complements
What do externalities indicate?A. public goodsB. a market failureC. a lack of informationD. resource immobility
B. a market failure
rule stating that more will be demanded at lower prices and less at higher prices
Law of Demand
measures a country's output and economic health
gross domestic product
Which of the following is an accurate statement about minimum wage laws in the United States?A. The minimum wage is adjusted by law every five years.B. The minimum wage is the same in all parts of the country.C. Some states have e...
D. Some states have established a higher-than-federal minimum wage.
Do you think you would prefer to work in an economy with secure employment with uniform wages for different occupations or an economy with some employment risk and different wages for different skills, abilities, and occupations?...
I prefer to work in an economy with some employment risk and different wages for different skills, abilities, and occupations. I want to be rewarded f...
Which of these statements describes a disadvantage of a traditional economy?A. Everyone knows his or her role.B. New ways of doing things are encouraged.C. New ways of doing things are discouraged.D. Difficult economic decisions a...
C. New ways of doing things are discouraged.
Choose a consumer right from the list below and describe a corresponding consumer responsibility.The right to safetyThe right to be informedThe right to chooseThe right to be heardThe right to redress
A consumer responsibility for the right to be informed is to use the information. The consumer should use the information to know which product is saf...
Which is an example of a public good?A. a rock bandB. a carC. the armyD. bread
C. the army
Who did Karl Marx believe would be the beneficiaries of socialism?A. property ownersB. the governmentC. workersD. capitalists
C. workers
The forces of supply and demand help set the international value of the U.S. dollar. Analyze the graph. What does the data reveal about the value of the dollar over time?
The data reveals that the value of the US dollar increases until around 2003 where it starts to decrease in value. After 2003, the value decreases the...
Which of these describes an effect of increased government regulation on producers?A. It shifts their market supply curve to the right.B. It shifts their market supply curve to the left.C. It prompts them to increase output at all...
B. It shifts their market supply curve to the left.
represents the range of production possibilities
production possibilities curve
the extent to which a change in price causes a change in the quantity demanded
demand elasticity
What do low prices signal buyers to do?A. nothingB. buy moreC. buy lessD. substitute
B. buy more
Consumers can influence the production and sale of goods byA. "voting" with their dollars.B. saving their money.C. reducing their spending habits.D. paying off their debt.
A. "voting" with their dollars.
combination of desire, ability, and willingness to buy a product
demand
manufactured good used to produce other goods or services
capital good
Societies are faced with which three basic questions about production of goods?A. what, how, and whyB. what, where, and whenC. what, how, and for whomD. when, where, and for whom
C. what, how, and for whom
Under perfect competition, what sets the equilibrium price in the market?A. nonprice competitionB. supply and demandC. the governmentD. a monopoly
B. supply and demand
a form of corporate ownership giving one vote per share for stockholders
common stock
The most comprehensive measure of a nation's wealth is provided by itsA. gross domestic product.B. TINSTAAFL rating.C. product possibilities curve.D. capital goods.
A. gross domestic product.
Which of these is the best description of a normal supply curve?A. Its slope is completely horizontal.B. Its slope goes up when the diagram is read from right to left.C. Its slope goes up when the diagram is read from left to righ...
C. Its slope goes up when the diagram is read from left to right.
When a union negotiates pay and other job-related matters, this is calledA. collective bargaining.B. going on strike.C. cooperative bargaining.D. accessing resources.
A. collective bargaining.
Which of these tends to force the price of an item upward?A. a surplus of that itemB. a shortage of that itemC. attainment of an equilibrium price for that itemD. attainment of an equilibrium quantity of that item
B. a shortage of that item
Name a governmental regulatory agency, and describe its purpose in relation to consumers.
A governmental regulatory agency is the FDA (Food and Drug Administration). Its purpose in relation to consumers is to protect their safety and make s...
consumer demand for different amounts at every price, causing the demand curve to shift to the left or the right
change in demand
place where entrepreneurs can receive the training to build a successful start-up business
incubator
What is the main cause of a change in quantity demanded?A. substitutionB. changes in revenueC. change in priceD. the income effect
C. change in price
nonprofit service cooperative that accepts deposits, makes loans, and provides other financial services
credit union
To get a picture of a business's overall expenses and profits, you should look at itsA. inventories.B. depreciation.C. dividends.D. income statement.
D. income statement.
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