All of the following are characteristics of allocation by rationing EXCEPT: Lack of Fairness; Efficiency; High Administrative Cost; Diminished Incentive for Workers
What is Efficiency?
100
Governments invest in this by providing healthcare and schools; Businesses invest in this by providing training to individual employees.
What is human capital?
100
Which of the following is NOT one of the roles of government in the economy? - Provider and consumer; entrepreneur; Protector; Regulator
What is Entrepreneur?
100
What is the most common form of business organization in the United States?
What is sole proprietorship?
100
An increase in the price of milk causes a decrease in the demand for cereal. The two products are:
What is compliments?
200
For most products and services, increased price results in:
What is demand for fewer products?
200
Doctors Without Borders is an example of a(n):
What is nonprofit organization?
200
The Federal Deposit Insurance Corporation is an example of _____________ role of government.
What is direct?
200
Price floors that are artificially high are likely to create:
What is a surplus?
200
This person/people organize land, capital, and labor in order to seek the reward called profit.
What is entrepreneur?
300
North Korea and Cuba have this type of economy:
What is command?
300
This is the fundamental economic problem facing all societies:
What is scarcity?
300
A corporation that has at least four businesses, each making unrelated products, none of which is responsible for a majority of its sales, is called a:
What is conglomerate?
300
The accumulation of those products that are tangible, scarce, useful, and transferable from one person to another.
What is wealth?
300
Total cost is the sum of the:
What is fixed and variable costs?
400
In a competitive market, the adjustment process moves toward market:
What is equilibrium?
400
If there is a surplus in the market, the price is likely to:
What is decrease?
400
A credit union is an example of this type of cooperative:
What is service?
400
What is a major reason for conglomerate mergers?
What is unlimited life?
400
The level of profit-maximizing output is reached when marginal cost is:
What is equal to marginal revenue?
500
Prices enable a market economy to adjust to unexpected events by:
What is maintaining consumption and production at stable levels?
500
This is who benefits when scarce resources are used effectively:
What is everyone?
500
If a competitive market is at equilibrium, and if there is a sudden increase in demand, then a temporary
What is shortage will occur and the price will increase?
500
The accumulation of those products that are tangible, scarce, useful, and transferable from one person to another.
What is wealth?
500
Why might a government interfere in a market economy by setting prices?
What is to achieve the goals of equity and security?