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EVER!
100
In the product market....
A) productive resources are bought and sold. B) producers sell goods and services to consumers. C) a nation's total output of goods and services increases. D) the amount of output produced by a given amount of inputs is measured.
100
The new oven in Mr. Brown's bakery allows him to produce bread more efficiently and more cheaply. What is the MOST LIKELY effect?
A) the price drops and the quantity demanded decreases B) the price rises and the quantity demanded decreases C) the price drops and the quantity demanded increases D) the price rises and the quantity demanded increases
100
Which of these is the best economic definition of "pure competition"?
A) the market is dominated by one seller B) the market is dominated by a few buyers C) the market is dominated by two or more sellers D) the market is not dominated by either buyers or sellers
100
In the circular flow of goods and resources, where do individuals spent the income they earn?
A) The Factor Market B) The Product Market C) Individual Households D) The Capital Market
100
Which is an example of a transaction in a factor market?
A) paying taxes B) purchasing a bar of soap C) purchasing umbrellas in bulk D) a paycheck
200
Money that individuals receive from businesses return to businesses in
A) the factor markets. B) the product markets. C) the purchase of land. D) the payment for resources.
200
If a new machine was developed that picked coffee beans twice as fast as is currently possible, what would you expect to happen to the price of coffee?
A) The price would increase to pay for the new machinery. B) The price would decrease because there would be more coffee available. C) The price would increase due to greater demand for coffee picked this way. D) The price would decrease because fewer would want coffee picked by machine.
200
What is the primary purpose of job specialization?
A) regional self-sufficiency B) increased consumer income C) increased marginal utility D) increased efficiency and productivity
200
How do individuals contribute to the circular flow of economic activity?
A) Businesses buy goods and services from individuals B) Businesses purchase productive resources in product markets C) Individuals provide labor or factor markets and buy goods in product markets D) Individuals buy productive resources from factor markets and provide labor for product markets.
200
Which is an example of a transaction in a product market?
A) purchasing a t.v. B) returning a faulty chair C) signing off on a rebate slip D) donating a couch
300
Which statement about the circular flow model is CORRECT?
A) Businesses earn income from both the factor and product markets. B) Households earn income from both the factor and product markets. C) Households earn income from the product market, and businesses earn revenue from the factor market. D) Households earn income from the factor market and businesses earn revenue from the product market.
300
How might a minimum wage law impact the supply and demand of workers?
A) It might result in a surplus of supply. B) It might result in a shortage of supply. C) It might result in lower wages for workers. D) It might result in a lower unemployment rate.
300
In a command economy, how are the prices of goods and services determined?
A) business owners B) the central government C) market forces of supply and demand D) independent agencies and independent regulators
300
Jorge and Fred have a product they would like to sell. They decide to share the risks and profits by forming an unincorporated business. The business organization Jorge and Fred have MOST LIKELY formed is a(n)
A) Partnership B) Corporation C) Entrepreneurship D) Sole Proprietorship
300
What determines the prices of land, labor, capital, and entrepreneurship in a factor market?
A) owners value B) supply and demand C) natural diasters D) price of other products
400
What should happen to the equilibrium price of whoopee cushions when the price of the rubber necessary to make the cushions declines?
A) The equilibrium price will rise. B) The equilibrium price will fall. C) The equilibrium price will stay the same. D) The price of substitute products will rise.
400
The MOST LIKELY incentive for entrepreneurs to start a new business is
A) to make a profit. B) to discover a new patent. C) to risk financial failure. D) to create a new social benefit.
400
In a market economy, prices are established by
A) consumers and labor unions. B) decree of government agencies. C) the interaction of supply and demand. D) businesses which buy and sell the products.
400
Pepsi and Coke is best described as what kind of market structure?
A. Monopoly B. Pure Competition C. Monopolistic Competition D. Oligopoly
400
What does interdependence mean?
A) international business decisions B) supply and demand C) depending on other entities D) relying on corporations
500
How do supply and demand influence market price?
A) Supply determines market price because the seller sets the price. B) The price is determined by the highest price consumers are willing to pay. C) The price is determined by the lowest price producers are willing to accept. D) The market clearing price is where quantity demanded is equal to quantity supplied.
500
Which market structure has the largest number of suppliers?
A) monopoly B) oligopoly C) perfect competition D) monopolistic competition
500
· Decentralized decision making. · Adjusts to changes in the market place. · Producers and consumers have control of the economy. All of these are characteristics of a/an ___ economy.
A) command B) market C) socialist D) traditional
500
In a Sole Proprietorship, who makes the operating decisions?
A) Board of Directors B) Share Holders C) Owner D) Employees
500
If a price ceiling is in place above the equilibrium price, what will most likely happen?
A) Companies will sell thier items at the equilibrium price B) There will be a surplus C) There will be a shortage D) Companies will sell thier items at the price ceiling price.