A
B
C
D
E
100
resources are limited (word)
scarcity
100
the three basic economic questions that every economy must answer.
what, how, and for whom
100
give a specific example of the factor of production called land.
Lots of things.
100
Recently the price of a popular perfume has increased by $10. How will the price change likely affect the quantity demanded and supplied?
Supply will increase, and demand will decrease.
100
One of the benefits of the U.S. free enterprise system
choices
200
basic idea of choice presents which of the problems in economics
decisions produce costs (opportunity cost)
200
In a free market society, the answer to the question about how much to produce is determined by who?
consumer
200
Someone wanting to buy a computer must consider the other purchases that could be made with the money spend on the computer. Which economic factor has this individual considered before making this purchase
opportunity cost
200
Give an example of a non-price determinant of demand.
expectations, consumer preferences, income
200
Result of competition in free enterprise
lower prices and better products
300
government program during WWII to allocate resources. Every American was issued a series of coupon books. Once the coupons were used for the month, you couldn't buy any more of that type of food.
rationing
300
What does point B represent?
a combination that can be attained only if all resources are used
300
When can point F be attainted?
Introducing something new
300
DEMAND CURVE FOR CELL PHONES
What could have caused the shift in the demand curve?
a new product that just dropped
300
Laws that say where you can build houses and where you can build businesses.
zoning laws
400
a country with a comparative advantage will produce a product with -
a higher, lower, or equal opportunity cost
lower
400
free trade adversely affects which group of people?
works
400
basic characteristic of all economic systems
distribution of goods and services
400
In comparison to the U.S. free enterprise system the economy of China is characterized by a lack of what?
Many things.
400
benefit of high risk vs. low risk
the potential rate of return on investment is higher
500
Why pure competition is distinctive?
it doesn't exist
500
What type of market structure includes:
Few sellers
some control over price
High market entry barriers
some product differentiation
A. Oligopoly; B. Natural monopoly; C. Pure competition; D. monopolistic competition
A. Oligopoly
500
Characteristics of business structure type:
NO special taxes
unlimited liability
easy to manage
complete ownership
difficult to raise capital
sole proprietorship
500
risk from investing in the stock market
loss of purchasing power
500
One of the advantages corporations have that sole proprietorships
limited liability