Supply and Demand
The desire, ability, and willingness to buy a product
demand
Market structures are based on the degree of what?
competition
True or False: Henry Ford's assembly line is a good example of both specialization and division of labor.
True
When a country or business can produce a good or service with fewer resources than anyone else, they have what?
absolute advantage
The amount of product offered for sale at all possible prices
supply
Which market structure is used as a guide by economists to evaluate other market structures?
perfect (or pure) competition
When work is organized into separate tasks for different individuals, what do we call that?
division of labor
When a country or business can produce a good or service at a lower opportunity cost than someone else, what do they have?
comparative advantage
What is the point where quantity demanded equals quantity supplied?
equilibrium price
When businesses advertise to promote differences in their product based on other products, what do we call that?
product differentiation
The measure of the amount of goods and services produced with a given amount of resources in a specific amount of time. This is used to describe efficiency.
productivity
If Natasha and Brian can both produce 7 business cards in one hour, who has the absolute advantage?
Neither have the absolute advantage
Consumer preferences, quantity of consumers, income, expectations, and prices of related goods are all examples of what?
Non-price determinants of demand
Which market structure has a few main sellers offering very little product differentiation?
Mary has been appointed the leader of her group in an upcoming project. In order to make things more efficient, Mary decides to give each person a specific task. What is this an example of?
division of labor
Erin can produce 3 pizzas OR 12 cupcakes in 2 hours. Andrew can produce 7 pizzas OR 6 cupcakes in 2 hours. Who has the absolute advantage in producing cupcakes?
Erin
Your favorite shampoo recently increased in price by $3. How will this price change affect the quantity demanded and the quantity supplied?
The quantity demanded will decrease; the quantity supplied will increase
Company X is one of many businesses in its industry offering products very similar to its competitors' products. Company X uses advertising to make its product stand out from the rest. Which market structure does Company X belong to?
Monopolistic Competition
You have opened up a new bakery and need to hire employees. One of your candidates has experience in marketing, so you give her the responsibility of advertising. What is this an example of?
specialization
Josh can produce 2 dance routines OR 5 music scores in 3 hours. Ruth can produce 2 dance routines OR 6 music scores in 3 hours. Who has the comparative advantage in producing dance routines?
Josh