Law of Supply and Demand
Market Structures
International Trade
Comparative and Absolute Advantage
Free Enterprise Economic Characteristics
100
When quantity supplied goes up and price goes up, this is called what type of relationship?
What is a Direct Relationship
100
A market structure with one seller, no product differentiation, and barriers to market entry is called?
What is a monopoly?
100
Which of the following actions could the United States take to increase exports of sports cars to Japan? F Share sports car technology with Japan G Negotiate to lower tariffs on sports cars H Increase the exchange rate of the American dollar J Raise the prices of sports cars in the United States
What is G Negotiate to lower tariffs on sports cars?
100
Lou and Terry want to start a summer business. Lou is in better shape and can mow 6 lawns or rake 3 lawns per hour. Terry can mow 5 lawns or rake 1 lawn per hour. Who has the absolute advantage?
What is Lou has the absolute advantage in both jobs?
100
Olivia lives in a country with a socialist economic system. There are three government television stations available for viewing. She bought a new television after payday and watches one of the government characteristic of the free enterprise system is most likely missing? A Wages B Competition C Property rights D Economic freedom
What is B competition?
200
When it comes to supply and demand, what is meant by equilibrium price?
What is the price at which the quantity supplied in the market match the quantity demanded?
200
A market structure with large # of well-informed buyers/sellers, buyers/seller cannot influence price, and where the market is easy to enter is called?
What pure/perfect competition?
200
With a given amount of resources, a country with a comparative advantage will produce a product with — A decreased demand B lower opportunity costs C cheaper natural resources D higher quality specifications
What is B. lower opportunity costs?
200
Read the following scenario: In 1 hour Lou could mow 6 lawns while Terry raked 1. Terry could mow 5 lawns while Lou raked 3. Who has the comparative advantage in mowing laws and raking?
What is Terry has the comparative advantage in mowing lawns? What is Lou has the comparative advantage in raking?
200
Andrew just graduated from a Texas college with a degree in art history. He is seeking employment at a museum. Which economic characteristic did Andrew take advantage of when choosing his career path? A Property rights B Incentives C Economic freedom D Role of government
What is C Economic freedom?
300
What type of change in quantity supplied is taking place the the scenario below: If the government tells auto manufacturers they must have seat belts or airbags in all cars. What type of change in quantity supplied is shown in this scenario?
What is change in government regulations?
300
A market structure where there are few sellers, some product differentiation, and price fixing is called?
What is oligopoly?
300
Which 3 counties are involved in the North American Free Trade Agreement (NAFTA)
What is Mexico, US and Canada?
300
Read the following scenario: Cleaning offices, Andy can clean an office in 60 minutes and Hannah can do this in 20 minutes. When cleaning jail cells Andy can clean in 30 minutes, and Hannah in 15 minutes. What is Andy’s opportunity cost of cleaning offices in terms of cleaning jail cells?
What is Cleaning 2 jail cells?
300
Casey works in a government-owned radio factory in a command economy. While the factory superintendent sets quotas for how many radios should be produced, workers rarely meet the quota, and the quality of the radios is low. However, they all get paid the same amount each week. Which characteristic of free enterprise is missing in this scenario?
What is Incentives?
400
If sellers leaves the market for some reason, supply will decrease, what will happen to the supply curve?
Shift to the left (change in # of sellers)
400
A market where all conditions of perfect competition apply and is the most competitive, and there is product differentiation this is called?
What is monopolistic competition?
400
What part does specialization play when it comes to international trade?
What is it allows for a country to devote it self to specific expertise or a specific skill? Or what is they are good at one thing than another country?
400
Read the following Scenario: Andy can clean an office in 60 minutes and Hannah can do this in 20 minutes. When cleaning jail cells Andy can clean in 30 minutes and Hannah in 15 minutes. Who has the absolute advantage in cleaning offices?
Who is Hannah?
400
George and Martha bought a new home in a new neighborhood. When George built a large barn, his neighbors complained. Which of the following economic characteristics of the free enterprise system will probably help George and Martha keep their barn?
What is Property rights?
500
If new technology allows a producer to lower the cost of production and will always, what will happen to the change in quantity supplied curve?
Shift to the right with an increase.
500
What are TWO MAIN differences between a monopoly and an oligopoly?
(1) # of sellers (Monopoly 1 seller and Oligopoly few sellers) (2) No product differentiation (Monopoly) and Some product differentiation (Oligopoly)
500
***Daily Double*** If England can produce 60 million pounds of corn or 50 million pounds of potatoes. France can produce 30 million pounds of corn or 40 million pounds of potatoes. Who has the absolute advantage in corn and potatoes?
What is England has the absolute advantage in corn and potatoes?
500
Read the following: Andy can clean an office in 60 minutes and Hannah can do this in 20 minutes. When cleaning jail cells Andy can clean in 30 minutes, and Hannah in 15 minutes. Who has the comparative advantage in cleaning offices?
What is Hannah has the comparative advantage in cleaning offices?
500
Which of the following describes a primary role of the government in a free enterprise economic system? F Protecting property rights G Regulating consumer demand H Setting price and wage controls J Allocating the factors of production
What is F. Protecting property rights
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