Economics Chapter 7 Test, Econ unit 4 quiz 1, Econ 3, Chapter 7 Study Guide, ECO unit 3 test, eco unit 6 quiz 1, Economics, Economics Unit 5

In the supply-and-demand schedule shown above, the equilibrium price for cell phones is _____. $25 $100 $200

$100

In the supply-and-demand schedule shown above, the equilibrium price is _____.

$100

In the supply-and-demand schedule shown above, the equilibrium price is _____. $50 $100 $200

$100

In the supply-and-demand schedule shown above, at prices of _____ and _____, there is excess supply because quantity supplied is greater than quantity demanded.

$150, $200

In the supply-and-demand schedule shown above, at prices of _____ and _____, there is excess supply because quantity supplied is greater than quantity demanded. $50, $75 $50, $200 $150, $200

$150, $200

In the supply-and-demand schedule shown above, at the prices of _____ and _____, there is excess supply because quantity supplied is greater than quantity demanded. $25, $50 $25, $200 $150, $200

$150, $200

Suppose that consumers' incomes increased, such that more video games were demanded at each price level. After the increase in demand, the new equilibrium price is _____, where both supply and demand equal _____.

$160, 300 video games

Suppose that consumers' incomes increased, such that more video games were demanded at each price level. After the increase in demand, the new equilibrium price is _____, where both supply and demand equal _____. $120, 200 video games $160, 300 video games $120, 300 video games

$160, 300 video games

At a price of _____, books will be both supplied and demanded. $10 $20 $30

$20

In the supply-and-demand schedule shown above, at the prices of _____ and ______, there is excess demand because quantity demanded is greater than quantity supplied. $25, $50 $25, $200 $150, $200

$25, $50

Suppose that lower production costs increases the supply of wheat, such that more wheat is supplied at each price level. The new equilibrium price (after the increase in supply) is _____. $3 $4

$3

Suppose you are working 35 hours a week in the Cute Clothing Boutique and earning $10 per hour. You find out that you have deductions of $50 each week. This means that your net pay is _____ each week.

$300

Suppose you are working 35 hours a week in the Cute Clothing Boutique and earning $10 per hour. You find out that you have deductions of $50 each week. This means that your net pay is _____ each week. $50 $300 $350

$300

Please refer to the graph to answer the question. Without price controls, this market will adjust until it reaches a price of _____ per pair of shoes. This is the price at which producers supply the same amount that consumers demand.

$35

You produce video games. It costs you $35 to make each game. You want to charge at least _____ to cover your costs. $25.00 $45.00 $35.00

$35.00

You have a job in the Cute Clothing Boutique with wages of $10 per hour. You work 35 hours each week, so your gross pay is _____ per week.

$350

You have a job in the Cute Clothing Boutique with wages of $10 per hour. You work 35 hours each week, so your gross pay is _____ per week. $10 $35 $350

$350

You want to make a profit selling your new computer game. If it costs $30 to make the game, what price might you charge? $25 $40 $15

$40

If you earned $10 per hour and worked 40 hours a week, your gross pay would be _____. $10 $400 minus taxes $400

$400

Suppose that an increase in production costs decreases the supply of wheat, such that less wheat is supplied at each price level. The new equilibrium price (after the decrease in supply) is _____. $4 $5

$5

In the supply-and-demand schedule shown above, at prices of _____ and _____, there is excess demand because quantity demanded is greater than quantity supplied.

$50, $75

In the supply-and-demand schedule shown above, at prices of _____ and _____, there is excess demand because quantity demanded is greater than quantity supplied. $50, $75 $75, $100 $150, $200

$50, $75

In the supply-and-demand schedule shown above, at the equilibrium price, the quantity supplied is _____ and the quantity demanded is _____. 0, 500 200, 200 400, 0

200, 200

In the supply-and-demand schedule shown above, at a price of $50, producers supply _____ cell phones and consumers demand _____ cell phones. 200, 450 450, 200 300, 300

200, 450

In the supply-and-demand schedule shown above, at a price of $150, the quantity supplied of video games is _____ and the quantity demanded of video games is _____.

250, 100

In the supply-and-demand schedule shown above, at a price of $150, the quantity supplied of video games is _____ and the quantity demanded of video games is _____. 250, 100 50, 325 200, 200

250, 100

The _____ adds up the spending by different parts of the economy, such as consumption, investment, government spending, and net exports. income approach product approach expenditure approach

expenditure approach

Gross Domestic Product (GDP) includes _____. exports, but not imports imports, but not exports exports minus imports

exports minus imports

Give an ex. of market failure.

externalities and public goods

Pollution from a factory that produces cleaning products is a(n) _____. tariff antitrust law externality

externality

unintended consequence

externality

Maquiladoras are most similar to American _____. small businesses large corporations agricultural centers factories

factories

Select the items that describe possible effects of incentives for political leaders. favor programs with immediate benefits implement policies that favor a small, powerful group provide policies whose costs outweigh the benefits favor programs with immediate costs

favor programs with immediate benefits implement policies that favor a small, powerful group provide policies whose costs outweigh the benefits

antitrust legislation

federal and state law passed to prevent new monopolies from forming and to break up those that already exist

minimun wage law

federal law that sets the lowest legal hourly wage rate that maybe paid to a certain type of workers

Supply for clothing decreased, which means that suppliers will now supply_____________ clothes at each price level.

fewer

Please refer to the graph to answer this question. At $50 per pair of shoes, consumers demand _____ than you supply.

fewer shoes

end products of the production process

final goods and services

What are the specific economic problems related to the market failure involving public goods?

fire and police services, national defense, and public parks

Give an ex. of public goods.

fire and police services, national defense, public parks, streetlights

when the government uses government spending and taxes to affect economic performance

fiscal policy

You open a clothing business and have to pay rent even if you do not produce any clothing. Rent is a _____. fixed cost variable cost profit

fixed cost

Demand for surfboards in Southern California is most likely ________________ than the demand for surfboards in Alaska.

greater

At the lowest price for a TV, the number people demanding the good is _____ the number who demand the good at the highest price.

greater than

At the lowest price for a TV, the number people demanding the good is _____ the number who demand the good at the highest price. greater than less than the same as

greater than

Your _____ is the full amount of money that you earn without anything taken out for items such as taxes and Social Security. gross pay net pay

gross pay

Not-for-profit organizations are established mainly for religious, civic, educational, or purposes.

health

Not-for-profit organizations are established mainly for religious, civic, educational, or_______________ purposes.

health

Open-market operations are when the Federal Reserve buys and sells securities to influence the _____. reserve requirement tax rate money supply

money supply

When banks make loans, they put more money into the economy. This increases the _____.

money supply

When banks make loans, they put more money into the economy. This increases the _____. money supply interest rates stock prices

money supply

amount of money available in the economy, including money in circulation and demand deposits

money supply

Suppose barriers to entry exist in the telecommunications industry. This best describes a _____ market. monopolistic perfectly competitive

monopolistic

A market structure with a large number of sellers who make differentiated products is called _____. perfect competition monopolistic competition oligopoly

monopolistic competition

The ice cream market is an example of _____ because it has many sellers who offer differentiated products. perfect competition monopolistic competition oligopoly

monopolistic competition

one of the most common market structures

monopolistic competition

A ____________________ is a company that owns most of its market share and can set its own price.

monopoly

Sam's Electric is the only supplier of electricity in the market and provides a good with no close substitutes. The market for electricity is an example of _____. perfect competition monopoly

monopoly

independent of price is in what market structure?

monopoly

what is the least competitive market structure

monopoly

Select the kinds of market structures in which sellers have some (including complete) control over price. perfect competition monopoly monopolistic competition oligopoly

monopoly monopolistic competition oligopoly

Antitrust laws are designed to create _____ competition in the marketplace. less more

more

During periods of economic growth, an increase in consumption causes companies to make_____ goods and services. the same fewer more

more

During times of economic growth, people are buying _______________________ goods and services.

more

HDTVs go on sale, which reduces the price. This means that _____ people will demand the product.

more

HDTVs go on sale, which reduces the price. This means that _____ people will demand the product. more less

more

Other students in school learn that you are making money by selling bracelets. They decide to open their own bracelet businesses. This means that there is _____ competition in the bracelet market. more less

more

The price of your favorite soft drink just became lower. This means that you are likely to buy____________ of the drink.

more

There were two shoe stores in town, but you decided to open another shoe store. More sellers in the market means _____ competition. more less

more

When the economy is growing, producers are making _____ goods and services. more fewer

more

Select the items that can help you earn higher wages. more education more training more taxes more skills

more education more training more skills

The cost of making a new skirt is $20. At a price of $15, consumers will demand 600 skirts, and producers will___________________ skirts.

not supply

barriers to entry

obstacles to competition that prevent others from entering a market

financing

obtaining funds or money capital for a business expansion

When the government sets a price for wheat that is above the equilibrium price, it is imposing a _____. price ceiling price floor market price

price floor

Minimum wage and farming price control are examples of _____. market-clearing prices price ceilings price floors

price floors

a ____ ____ is a business that does not have to consider competitors when making its prices

price maker

A person who charges a price that is determined by buying and sales decisions is a _____. price setter price taker single seller

price taker

a business that accepts the market price determined by supply and demand is known as a

price taker

pure competition is a price taker or setter?

price taker

In the graph above, the equilibrium _____ for wheat is $3, and the equilibrium _____ for wheat is 1,000. price, quantity quantity, price

price, quantity

The graph above shows how the price of video games varies with the demand quantity. The equilibrium _____ is $50, and the equilibrium _____ is 200 video games.

price, quantity

The graph above shows how the price of video games varies with the demand quantity. The equilibrium _____ is $50, and the equilibrium _____ is 200 video games. price, quantity quantity, price

price, quantity

The cost of producing a new watch is $50. At a price of $100, watches will most likely be _____ and _____. bought and purchased supplied and demanded made and produced

supplied and demanded

Cell phone producers are supplying more phones than consumers demand, at the given price. This means that there is a _____ of phones. surplus shortage collusion

surplus

You produce clothing, and the price of cotton just increased by a lot. As a result, you will most likely _____ your prices. raise lower not change

raise

debt financing

raising funds for a business through borrowing

Gross Domestic Product adjusted for price changes

real GDP

Gross Domestic Product that is adjusted for price changes is called _____. nominal Gross Domestic Product real Gross Domestic Product inflation

real Gross Domestic Product

When Edison Electric Company and the Thomson-Houston Electric Company engaged in collusion, the two companies___________________ the level of competition in their industry.

reduced

deregulation

reduction of government regulation and control over business activities

Governments use _____ to make companies take responsibility for unintended effects. regulations tariffs externalities

regulations

a set of rules or laws designed to control business behavior is known as

regulations

Select the items that are kinds of price controls. rent control minimum wage Earned Income Tax Credit rent subsidy

rent control minimum wage

In a world of bartering, Naomi produces a lot of goods on her own. In a world with money, she can ______________ her dream of teaching.

specialize in

Fiscal policy refers to changes in tax levels and government _____. loans spending revenue

spending

If the government wants to help the economy to grow, it can increase , but this can also increase the budget debt.

spending

If the government wants to help the economy to grow, it can increase__________________ , but this can also increase the budget debt.

spending

Real GDP per capita is the most popular way to measure _____. changes in prices standard of living changes in population

standard of living

comfort level that people experience from having goods and services available to them

standard of lving

a _____ _____ is a product that consumers see as identical to another product

standardized product

Knowing that you are buying one pound of bread is part of _____. contract enforcement property rights standards for weights and measures

standards for weights and measures

There are more jeans in the stores than consumers are willing to buy, at the given price. This means that there is a _____ of jeans. surplus shortage maximum quantity

surplus

What necessitated the need for Antitrust laws?

they were designed to limit the formation of monopolies or combinations of firms that act to restrict competition. This was created after Rockefeller bought out and bankrupt his competitors until he controlled about 90% of U.S. oil sales.

What is the GPEC created to do?

to control the oil supplied

money earned from all producers in a country

total income

revenues

total income from sales of output

civilian labor force

total number of people 16 years or older who are either employee or actively seeking work

all goods and services produced by using the factors of production

total output

Knowledge that gives a producer an economic advantage over other producers is called a _____. trade secret trademarks patents

trade secret

an agreement between countries to reduce trade barriers

trade-bloc

Which of the following would NOT be considered leakage in the circular flow model?

transfer payments

How many producers are in the air plane making business?

two

direct-mail advertising

type of promotion using a jailer that usually includes a letter describing the product or service and an order bank or application form

number of working-age people who do not have jobs

unemployment

The government provides _____ to people out of work who are actively looking for new jobs. unemployment insurance frictional unemployment labor benefits

unemployment insurance

money that the government gives to unemployed people who meet certain requirements

unemployment insurance

percentage of the labor force that is willing and able to work, does not currently have a job, and is actively looking for work

unemployment rate

arbitration

union and management submit the issues they cannot agree on to a third party for final decisions

industrial union

union made up of all workers in an industry regardless of job skill level

craft union

union made up of skilled workers in a specific trade or industry

Examining the real GDP per capita in different countries allows economists to compare _____ in different parts of the world. levels of education health care coverage standards of living

standards of living

right to work laws

state laws forbidding unions from forcing workers to join and pay union dues

When money is deposited in the bank for later use, it is a _____. medium of exchange store of value unit of account

store of value

Select all the items that describe the jobs of money. store of value tool of bartering unit of account medium of exchange

store of value unit of account medium of exchange

Select the items that describe the jobs of money. store of value hard to transport not durable unit of account medium of exchange

store of value unit of account medium of exchange

What person or organization will usually supply goods and services when it appears that the benefits to society outweigh the costs to society? entrepreneur corporation government banks

government

Which of the following is NOT part of the simple circular flow model?

government

robotics

sophisticated computer controlled machinery that operates and assembly line

the authority of a state to govern itself

sovereignty

In the supply-and-demand schedule shown above, at the equilibrium price, the quantity supplied is _____ and the quantity demanded is _____.

200, 200

positive externality

a benefit of production or consumption that falls on someone other than the producer or consumer; a positive side effect

unemployment that happens when the economy is growing slowly or shrinking

cyclical unemployment

What characteristics of an oligopoly most closely resemble characteristics of a monopoly?

-arise because of economies of scale -firms don't have to be large

Firms in an oligopoly may drive prices upward to levels above market equilibrium price- why would they do this?

-behave more like monopolies -don't try to win a larger share of the market -they all raise prices

What is the difference between a price setter and a price taker?

-price setter: a producer that can set a price for a product, rather than accepting the market price -price taker: a producer that has no influence over the price of a product; price takers must accept the market price

In the supply-and-demand schedule shown above, at the lowest price of $25, sellers are willing to supply _____ cell phones. 500 0 300

0

1. bank balance 2. bond 3. depository institutions 4. interest 5. loan 6. risk

1 amount of money in a bank account 4 price of money borrowed or saved 2 type of security that is issued for a certain amount 3 financial institutions whose funds come mainly from deposits 6 chance that things will turn out differently than expected 5 money to be paid back under certain terms

1. fixed cost 2. market share 3. price setter 4. price taker 5. variable cost

1 costs that does not change as output changes 5 cost that changes as output changes 4 seller that cannot affect a product's price 3 seller that determines a product's price 2 part of total sales held by one seller

1. input costs 2. interrelated markets 3. production substitute 4. supply

1 expenses of productive resources 4 quantity of a good or service that producers make and sell in the market 3 good that can be used as a replacement for another good in the production process 2 markets that are connected in a mutual way

List and give an example of the 4 types of monopolies

1, natural monopoly- water companies 2. government monopoly- united states postal service 3. technological monopoly- polaroid 4. geographical monopoly- rural gas stations

What are 3 types of market structures with imperfect competition

1. Monopoly 2. Oligopoly 3. monopolistic competition

List and explain the 5 characteristics of Perfect Competition

1. Numerous buyers and sellers 2. standardized product- a product that consumers consider identical to other products in the same market 3. freedom to enter and exit markets- no government involvement 4. independent buyers and sellers- sellers cannot join other sellers and buyers cannot join other buyers to influence prices 5. well informed buyers and sellers- buyers and sellers are well informed about market conditions

In what 2 ways are perfect markets beneficial to society?

1.) force producers to be as efficient as possible. When producers can sell only at the equilibrium price, the only way to maximize profits is by allocating resources to their most valued use and by keeping production costs as low as possible. 2.) because perfect competition is efficient, consumers don't pay more for a product than it's worth. The equilibrium price of a product accurately reflects the value the market places on the productive resources (land, labor, capital) that have gone into it.

What are 4 characteristics of pure monopoly?

1. a singular seller 2. no substitutions 3. Barriers to entry 4. Almost complete control of market price

list the 4 major characteristics of an oligopoly

1. few sellers and many buyers 2. standardized OR differentiated products 3. more control of prices 4. little freedom to enter or exit market

list the 4 major characteristics of monopolistic competition

1. many buyers and many sellers 2. similar but differentiated products 3. limited control of prices 4. freedom to enter or exit market

list and explain the 3 characteristics of Monopolies

1. only one seller- a single seller controls the supply of a product that has no close substitutions 2. a restricted, regulated market- government regulation or other barriers to entry keep other firms out of the market 3. control of prices- monopolies control prices because there is no competition or close substitutes

Give 3 textbook examples of the 4 firm concentration ratio.

1.) four firm concentration ratio in the light bulb industry is 75% 2.) four firm concentration ratio in computers is 87% 3.) four firm concentration ratio for bottled water is 72%

Name the 4 characteristics in monopolistic competition.

1.) many producers 2.) different products 3.) few barriers to entry 4.) some control over prices

Give 3 textbook examples that illustrate barriers to entry.

1.) One barrier is start up costs. To open a bicycle repair shop it is less expensive than it is to open a bicycle factory. An entrepreneur with little financial capital might find it difficult to get into bicycle manufacturing because of the high cost of building a factory. 2.) Another barrier is control of resources. The mining industry shows an ex. of this. If existing mining companies already control the best deposits of iron, copper, or other minerals, it will be hard for new firms to enter markets. 3.) Technology can pose as a barrier. Some industries are more technology drive than others. Computer industry ex. Not only does the manufacture of computers require advanced technology, it also requires specialized knowledge that can be obtained only through years of education. These act as a barrier, keeping new firms out of the market.

What are the 6 mechanisms to quickly foster free market solutions to global warming? Explain each.

1.) fee bates: fee on low efficiency automobiles, rebate to efficient cars 2.) cap and trade: cap on planet warming pollution 3.) clean incentives: revenues from sale of carbon credits should be used to create incentives to speed development and adoption of new technologies. ex: solar panels on houses 4.) decoupling: make it so utilities make money by not selling power but by helping consumers use it more productively 5.) net metering: homeowners who have excess electricity can sell it back 6.) performance standards: establish minimum standards based on the current state of technology

What are the 4 main characteristics of oligopoly?

1.) few producers 2.) similar products 3.) high barriers to entry 4.) some control over prices

Name the 4 characteristics in oligopoly.

1.) few producers 2.) very similar products 3.) high barriers 4.) some control over prices

What are the explanations of the 4 main characteristics of oligopoly? Give a textbook ex. of each.

1.) few producers: a small # of firms control the market. In general, an industry is considered an oligopoly if the four top producers supply more than about 60% of total output. ex: four firm concentration in light bulb industry is 75% 2.) similar products: producers offer essentially the same product, with only minor variations ex: light bulbs are all very similar. They may come in different shapes and sizes but they are all close substitutes for one another. Same for kitchen appliances, soap, cola drinks 3.) high barriers to entry: it's hard for new firms to break into an oligopoly and compete with existing businesses. One reason may be start up costs. ex: it would cost many millions of dollars to open a new computer chip factory and compete with industry leaders such as Intel. In addition, customers might be reluctant to give up their loyalty to the old brands and try something new. 4.) some control over prices: because therefore firms in an oligopoly, they may be able to exert some control over prices. Firms in an oligopoly are often influenced by the price decisions of other firms in the market. Interdependence between firms in setting prices is key feature.

Name the 4 characteristics in perfect competition.

1.) many producers 2.) identical products 3.) easy entry 4.) no control over prices

What are the 4 characteristics of perfect competition? And explain each.

1.) many producers and consumers: having a large # of participants in a market helps promote competition 2.) identical products: products in a perfectly competitive market are virtually identical. As a result, consumers don't distinguish among the products of different producers. A product that is exactly the same no matter who produces it is called a commodity. (ex: grains, cotton, sugar) 3.) easy entry into market: producers face few restrictions in entering the market. Ease of entry ensures that existing producers will face competition from new firms and that a single producer won't dominate the market. 4.) no control over prices: under conditions of perfect competition, producers have no market power. They can't influence prices because there are too many other producers offering the same product. Market forces of supply and demand determine price of goods. Producers are said to be price takers because they must accept the market price for their product

Explain 4 characteristics of monopolistic competition. Explain and give a textbook ex. of each.

1.) many producers: many producers/sellers in this market. ex: In a big city, many restaurants compete with one another for business. The same is true for gas stations and hotels. 2.) differentiated products: firms in this type of market engage in product differentiation (distinguish their goods/services) ex: a pizza stand and a taqueria both offer fast foods. A customer may have a taste for one type of food over the other but either will provide a suitable lunch. 3.) few barriers to entry: start up costs are relatively low in monopolistically competitive markets. This allows many firms to enter the market and earn a profit. ex: It doesn't cost much to get into the custom T-shirt business. That means that an entrepreneur with a good set of T-shirt designs may be able to open a shop or create a website and sell enough shirts to make a profit. 4.) some control over prices: because producers control their brands, they also have some control over prices. However, because products from different producers are close substitutes, this market power is limited. If prices rise too much, customers may shift to another brand. In addition, there are too many producers for price leadership or collusion to be feasible.

What are the 4 main characteristics of a market structure? Explain each.

1.) number of producers: # of producers in a market helps determine the level of competition. Markets with many producers are more competitive. 2.) similarity of products: the degree to which products in a market are similar also affects competition. The more similar the products are, the greater the competition among their producers. 3.) ease of entry: markets differ in their ease of entry, which is a measure of how easy it is to start a new business and begin competing with established businesses. Markets that are easy to enter, with few restrictions, have more producers and thus are more competitive. 4.) control over prices: markets also differ in the degree to which producers can control prices. The ability to influence prices, usually by increasing or decreasing the supply of goods, is known as market power. The more competitive the market, the less market power any one producer will have.

Name the 4 characteristics in monopoly.

1.) one producer 2.) unique product 3.) high barriers to entry 4.) substantial control over prices

What are the 4 characteristics of monopolies? Explain each.

1.) one producer: there is no competition. A single producer or firm controls the industry of market. An economist might say that the monopolistic firm is the industry. 2.) unique product: a monopoly provides the only product of its kind; no substitutes, and no other producers provide similar goods or services 3.) high barriers to entry: the main factor that allows monopolies to exist is high barriers to entry that limit or prevent other producers from entering the market 4.) substantial control over prices: monopolistic firms usually have great market power because they control the supply of a good/service. They can set a price for a product without fear of being undercut by competitive firms.

What are the 3 ways government created monopolies can be formed?

1.) patents and copyrights 2.) public franchises 3.) licenses

What are the 4 basic market structures?

1.) perfect competition 2.) monopoly 3.) oligopoly 4.) monopolistic competition

List and explain the 4 focuses of non-price competition. Give ex. of each.

1.) physical characteristics: there are many kinds of products that consumers will pay more for because of their unique physical characteristics ex: a pair of running shoes may stand out from its competitors because of the shoes unique design, color, or materials. A consumer who likes that particular shoe may not consider buying any other pair, regardless of price. 2.) service: some producers offer better service than others and can therefore charge higher prices ex: a fast food chain and a sit down restaurant both offer food, but the more expensive restaurant also offers table service 3.) location: gas stations, dry cleaners, motels, and other businesses may compete with one another based on location. Although they offer the same basic product or service, a firm may win customers because it is located near a highway, mall, etc. 4.) status and image: sometimes companies compete on the basis of their perceived status or trendiness one brand may be regarded as more exclusive, more natural, or more fashionable than another. ex: a handbag from an expensive boutique may have greater status in a customer's eyes than a similar bag from a discount store.

What are the 3 ways oligopolies drive prices up? Explain each and give a textbook ex. of each.

1.) price leadership: in an oligopoly dominated by a single company, that firm may try to control prices through price leadership the ability of the dominant firm to set price levels that other firms than follow. Sometimes the dominant firm may cut prices to take business away from its competitors. This leads to a price war (both want to win more sales from market). 2.) collusion: occurs when producers get together and make agreements on production levels and pricing. 3.) cartel formation: cartel is an organization or producers established to set production and price levels for a product. They are illegal in the U.S.

What are 2 types of legal monopolies?

1.) resource monopolies 2.) government created monopolies

1.Complement 2.Substitute 3.Demand Increases 4.Demand Decreases

1.Ice cream and ice cream cones 4.What happens to the demand for ice cream cones, if the price of ice cream increases? 2.Butter and margarine 3.What happens to the demand for butter, if the price of margarine increases?

Based on the exchange rate table below, one U.S. dollar is able to buy _____ Mexican pesos. Japan YEN 101.96 China YUAN 6.2471 Mexico PESO 12.8575 Canada DOLLAR 1.0853 101.96 1.0853 12.8575

12.8575

1. Complement 2. Substitute 3. Demand Increases 4. Demand Decreases

2 Butter and margarine 4 What happens to the demand for ice cream cones, if the price of ice cream increases? 1 Ice cream and ice cream cones 3 What happens to the demand for butter, if the price of margarine increases?

1. Economies of Scale 2. Financial Capital 3. Franchise 4. Grant 5. Depository Institution

2 Money used for investment 4 Monetary aid given by another organization (such as the government or corporation) 3 Permission granted to other people to sell a business's goods or services 1 Decreasing the average cost of each good as output increases 5 Financial institution whose funds come mainly from deposits

1. collusion 2. competition 3. customer service 4. profit maximization 5. quality

2 contest between rivals 1 agreement between two or more people to limit competition and earn higher profits 5 degree of excellence for something, such as a product 3 service provided to consumers during and after the buying process 4 profit level that earns the most money after expenses are paid

1. budget deficit 2. fiscal policy 3. public good 4. taxes

2 decisions to change spending or tax levels by the federal government 1 amount of money that a government overspends in a certain amount of time 3 item that can be used by everyone, provides benefits to more than one person at a time, and whose use cannot be restricted to only those people who have paid to use it 4 fees that the government charges on products, activities, or income

1. demand 2. demand curve 3. demand schedule 4. law of downward-sloping demand 5. quantity

2 graph that shows the relationship between price and quantity demanded 1 willing and able to consume 4 when a product's price rises, the quantity of the product demanded decreases, and when a product's price falls, the quantity of the product demanded increases 3 table that shows the relationship between price and demanded 5 amount

1. inefficient 2. minimum wage 3. personal income 4. price control 5. rent control

2 lowest amount of money that an employer can pay a person for working 4 government limit on the maximum or minimum price of a good or service 5 maximum amount that a property owner can charge a renter 3 money that a person has to buy goods and services 1 using resources in a wasteful way

1. marginal cost 2. marginal revenue 3. supply 4. supply curve 5. supply schedule

2 money earned by producing one more unit of a good 3 quantity of a good or service that producers make and sell in the market 4 graph that shows the relationship between price and quantity supplied 1 cost of producing one more unit of a good 5 table that shows the relationship between price and quantity supplied

1. marginal cost 2. marginal revenue 3. maximizes 4. monopoly 5. natural monopoly

2 money earned from producing an extra unit of output 3 makes as big as possible 4 market structure with one single seller, who produces a good or service with no close substitutes 1 cost of producing an extra unit of output 5 business that has large economies of scale and can make a product more efficiently than other sellers

1. equilibrium point 2. equilibrium price 3. excess demand 4. excess supply

2 price at which quantity supplied equals quantity demanded 4 more supply than needed 3 more demand than needed 1 point at which the supply and demand curves intersect

1. copyright 2. intangible 3. intellectual property 4. patent 5. piracy 6. royalty 7. tangible 8. trademark 9. trade secret

2 something that cannot be touched 9 something that gives a producer an economic advantage over other producers 4 sole right granted to an individual who invents a good or service 6 payment to a person with a copyright or patent to use his or her product 1 sole right to publish or sell a form of artistic work 3 intangible assets that result from creativity 7 something that can be touched 5 stealing intellectual property 8 word(s), symbol, or design that identifies a certain good or service

1. demand 2. demand schedule 3. supply 4. supply schedule

2 table that shows the relationship between price and quantity demanded 4 table that shows the relationship between price and quantity supplied 3 quantity of a good or service that producers make and put in the market 1 willing and able to consume

1. antitrust laws 2. barter 3. consumer 4. entrepreneur 5. fiscal policy 6. interest 7. labor

2 to exchange goods and services without the use of money 4 person who organizes other productive resources to make goods and services 7 human resource that is used to produce goods and provide services 6 price of money borrowed or saved 5 decisions to change spending or tax levels by the federal government 3 person whose economic wants are satisfied by using goods and services 1 rules that prevent the creation and behavior of monopolies

1. market-clearing price 2. price ceiling 3. price floor 4. shortage 5. surplus

2 when a price is set below the equilibrium price and not allowed to increase 1 price at which quantity supplied equals quantity demanded (also known as the equilibrium price) 3 when a price is set above the equilibrium price and not allowed to decrease 5 when producers want to sell more than buyers want to purchase at the given price 4 when buyers want to purchase more than the producers want to sell at the given price

1. Economies of Scale 2. Financial Capital 3. Franchise 4. Grant 5. Depository Institution

2.Money used for investment 5.Financial institution whose funds come mainly from deposits 1.Decreasing the average cost of each good as output increases 4.Monetary aid given by another organization (such as the government or corporation) 5.Permission granted to other people to sell a business's goods or services

1. checking account 2. denomination 3. exchange rate 4. minting 5. money

3 amount of one currency that can be traded for a unit of another currency 2 paper money of a certain value 4 the process of stamping out a coin from metal 1 bank service that allows a person to keep his or her money in the bank and to take out the money on demand 5 items that are widely accepted as final payment for goods and services (also called currency)

1. antitrust laws 2. legal contract 3. liability 4. property rights

3 legal obligation to repay a debt 4 privileges of deciding how resources are used 1 rules that prevent the creation and behavior of monopolies 2 agreement enforceable by law

1. complements 2. demand 3. income 4. relative prices 5. substitutes

3 money earned 5 goods or services that can replace other goods or services 2 willing and able to consume 1 goods that go together 4 prices of a good or service compared to the prices of another product

1. labor 2. productivity 3. references 4. salary 5. wage

3 people that comment on a person's character and qualifications 5 price of labor, often given on an hourly, daily, or weekly basis 2 the amount of output that comes from a unit of input 4 price of labor, usually expressed on a yearly basis 1 human resource that is used to produce goods and provide services

1. check 2. exchange costs 3. monetary 4. specialization

3 relating to money 2 what is given up from trading or bartering 4 focusing on one area 1 a set of written directions that tells a bank how to use money to pay someone

1. commission 2. price discrimination 3. salary range 4. wage discrimination 5. wage structure

3 scope (or range) of earnings 5 levels of jobs and earning ranges 2 when producers sell identical goods or services to different buyers at different prices 4 when people receive different wages based on factors such as race and gender 1 money earned as a percentage of sales revenue

1. efficiency 2. equilibrium price 3. shortage 4. surplus

3 when buyers want to purchase more than the producers want to sell at the given price 1 using resources effectively, without wasting them 2 price at which quantity supplied equals quantity demanded 4 when producers want to sell more than buyers want to buy at the given price

1. collective bargaining 2. division of labor 3. economic specialization 4. gross pay 5. net pay

3 when people concentrate their production on fewer kinds of goods and services than they consume 5 gross pay minus deductions, such as income taxes and Social Security contributions 1 process of negotiating work-related terms between workers' representatives and businesses 4 full amount of wages or salary that you earn 2 when the production of a good or service is broken down into several separate tasks, with different people performing each task

In the supply-and-demand schedule shown above, at the equilibrium price, the quantity supplied is _____ and the quantity demanded is _____. 200, 450 300, 300 400, 250

300, 300

1. Profit 2. Risk 3. Productivity 4. Regulation 5. Investment

4 Rules that control the behavior of others 3 Amount of output that comes from a unit of input 1 Revenue left over after expenses are paid 2 Chance that things will turn out differently than expected 5 Something that people put their money into, because they hope to make more money in the future

1. imperfect competition 2. monopolistic competition 3. monopoly 4. oligopoly 5. perfect competition

4 market structure with a few sellers who produce either identical or differentiated products 3 market structure with a single seller who produces a product with no close substitutes 1 when individual sellers have some control over the price of a product in a market 5 market structure with many sellers who produce identical products 2 market structure with large number of sellers who produce differentiated products

1. economies of scale 2. financial capital 3. grant 4. not-for-profit organizations

4 organizations established mainly for religious, health, educational, civic, or social purposes 1 decreasing the average cost of each good as output increases 2 money used for investments 3 monetary aid given by another organization (such as the government or corporations

1. complements 2. consumer 3. demand 4. demand schedule 5. equilibrium price 6. excess demand 7. excess supply

4 table that shows the relationship between price and demanded 2 people whose wants are satisfied by using goods and services 5 price where quantity supplied equals quantity demanded 1 goods that go together 3 willing and able to consume 6 more demand than needed 7 more supply than needed

Suppose that an increase in production costs decreases the supply of wheat, such that less wheat is supplied at each price level. The new equilibrium quantity (after the decrease in supply) is _____. 400 600

400

1. consumer 2. market economy 3. planned economy 4. price 5. producer

5 people who make goods and provide services 1 someone whose wants are satisfied by using goods and services 3 economy in which a central authority owns productive resources and distributes goods and services 4 cost of a good or service 2 economy in which market forces determine prices of resources and the prices and distribution of goods and services

1. antitrust laws 2. exports 3. externalities 4. imports 5. regulations 6. tariff

5 rules that govern behavior 1 laws that prevent anticompetitive behavior in the marketplace 2 goods and services sold to foreign countries 6 tax on imported goods 4 goods and services bought from foreign countries 3 unintended consequences

1. central bank 2. Federal Reserve 3. monetary policy 4. money supply 5. open-market operations

5 when a central bank buys and sells securities to influence the growth of the money supply 4 currency, coins, and checking account deposits 1 a country's primary authority on areas related to money 3 the influence of the central bank on the growth of the money supply 2 the central bank of the United States

In the supply-and-demand schedule shown above, at the lowest price of $25, consumers are willing to buy _____ cell phones. 500 0 300

500

How much percentage does one company control in an oligopoly?

60%

Suppose that lower production costs increases the supply of wheat, such that more wheat is supplied at each price level. The new equilibrium quantity (after the increase in supply) is _____. 600 800

800

Give an ex. of a negative externality.

A corn syrup factory produces an unpleasant odor and every day that odor drifts into a nearby neighborhood. Because of odor, some people in the area decide to sell their homes. Odor is so bad that housing prices fell.

What is the difference between a geographic monopoly and a technological monopoly?

A geographic monopoly for example, is a store se in a rural area, because of this, the potential for profits are small, and no other businesses wants to enter their market. There cloud be a technological monopoly over an invention for example. A government patent can give you exclusive rights to manufacture, rent, or sell your product. In addition, copyright protects art, literature, song lyrics, and other creative works

Give an ex. of excludable goods.

A grocery store will sell apples only to customers willing to pay for them.

What is the difference between a horizontal merger and a vertical merger?

A horizontal merger involves businesses tha make the same product and provide the same service, while a vertical merger takes place when 2 firms in different steps of manufacturing come together

Give a textbook ex. of a price taker.

A person shopping for a car can easily find out the range of models, features, and prices available. Such information is accessible at car dealerships in published reports and on the Internet.

Why are externalities (regardless whether they are positive or negative) examples of inefficiency and market failure?

Because they fail to factor all costs of production and all benefits to consumers into the model of supply and demand.

Select the true statement about standards for weights and measures. Sales of products or services impacted by weights and measures laws in the US represent a small proportion of output. A pound of flour from the Fluffy Flour Company will be the same weight as a pound of flour from another company. Companies owned by private individuals do not have to follow the standards. Standards often wind up discouraging the exchange of goods in the economy.

A pound of flour from the Fluffy Flour Company will be the same weight as a pound of flour from another company.

In a monopolistic competition, how many sellers are there?

A single seller

what does assembly line production require?

An assembly line requires workers or machines who specialize in a certain part of the line. It is also only possible with interchangeable parts in standardized sizes

_____ are rules that prevent the creation and behavior of monopolies.

Antitrust laws

_____ are rules that prevent the creation and behavior of monopolies. Patents Competitions Antitrust laws

Antitrust laws

What two methods does the federal government use to keep business competitive?

Antitrust laws and direct regulations of busies pricing and product quality

Give an example of collusion.

Apple and 5 major book publishing companies were accused of collusion aimed at fixing the prices of electronic book. 2013- a federal judge ruled that these companies negotiated with one another to drive up prices.

Select the statement that is not true about bartering. Bartering can be more time-consuming than trading with money. Bartering encourages specialization. It's difficult to determine fair values for goods and services.

Bartering encourages specialization.

give 3 examples of a barrier to entry

Big businesses controlling the market, government regulations, special resources or technology needed to enter that market

Which of the following is not an example of how Irish immigrants were eventually accepted in the U.S.? Irish, and people of Irish decent, are allowed to hold public office. Companies in the U.S. outsource jobs to Ireland. Irish immigrants are no longer denied work based on nationality. Irish immigrants, and people of Irish descent are no longer only allowed to live in certain areas of cities.

Companies in the U.S. outsource jobs to Ireland.

The _____ is used to measure price changes in commonly used goods and services, such as food and housing. real inflation hyperinflation Consumer Price Index

Consumer Price Index

a measure of the average change in prices of commonly used goods and services

Consumer Price Index (CPI)

average change in prices of commonly used goods and services

Consumer Price Index (CPI)

_____ occurs with economic downturns in the economic cycle. Frictional unemployment Cyclical unemployment Seasonal unemployment

Cyclical unemployment

Using the cost of supplying water to a new subdivision of 50 homes- explain why economies of scale are beneficial.

Economies of scale are beneficial because when each home had water meter installed individually it cost $101,000. But when all the houses bough the supplies together (mass production), each house cost $3000.

In one or two sentences, explain why there is no excess demand or excess supply at the equilibrium price.

Equilibrium is the point where supply and demand meet and the prices are set. Because the price is set as a equilibrium (where supply and demand meet), there won't be an excess to of either. However if you set the price above equilibrium, you move away from equilibrium and have disequilibrium can create excess supply or excess demand. Hope this helps! Can I get a brainliest? I need it BADLY!!!

According to the United Nations, many countries with very high development are located in _____, and many countries with low development are located in _____. Africa, North America North America, Europe Europe, Africa

Europe, Africa

technology spillover

a benefit that results when technical knowledge spreads from one company or individual to another, thereby promoting new innovations

Consumers consume money to satisfy their economic wants. True False

False

Providing intellectual property rights leads to fewer innovations. True False

False

Simple interest is calculated as a percentage of the bank balance and interest already earned. True False

False

Monetary policy is carried out by the _____ and involves the money supply and interest rates. president government Federal Reserve

Federal Reserve

The central bank in the United States is called the _____. Federal Reserve Federal Government Federal Money

Federal Reserve

which 2 government agencies work together to assess business mergers in the U.S.?

Federal Trade Commission and Department of Justice

GDP divided by the number of people living in a country

GDP per capita

market value, in dollar amounts, of all final goods and services produced within a country's borders

Gross Domestic Product (GDP)

_____ includes the goods and services made in a country, and _____ includes goods and services made from domestically owned factors of production. Gross Domestic Product, Gross National Product Gross National Product, Gross Domestic Product

Gross Domestic Product, Gross National Product

market value, in dollar amounts, of all final goods and services produced by domestically owned factors of production

Gross National Product (GNP)

Interlocking directorate

a board of directors, the majority of whose members also serve as the board of directors of a competing cooperation

Select all that apply. Select other ways to measure the quality of life in a country besides the real GDP per capita. Human Development Index Genuine Progress Indicator Gross Domestic Product Index of Social Health

Human Development Index Genuine Progress Indicator Index of Social Health

quality of life measurement that includes a form of GDP per capita, how long people are expected to live, and education

Human Development Index (HDI)

the Islamic State of Iraq and Levant (Syria), a terrorist Sunni Islam sect that seeks to create an all-Sunni country

ISIS

Give an ex. of positive externality.

If a neighbor has a party and is playing really loud music and you enjoy it. If a car company designs a new car that emits few pollutants, the company may benefit from increased sales. Society benefits too as a result of reduced air pollution.

Give an ex. of free-rider problem.

If streetlights were a private good, the company that provided them would want to charge the people who use them. But street lighting is not excludable, so anyone who passes under a streetlight can take a free ride by using the light and not paying for it. Because of these free riders, no private business will provide street lighting.

In three to four sentences, explain how an increase in government spending can increase the national debt.

If the government spends more money, but doesn't increase taxes, they have to borrow money from other countries in order to spend it. If we borrow money from other countries, then our country owes their country. When we owe something, that is called debt.

Give an ex. of rival in consumption.

If you buy an apple and eat it, that apple is no longer available for anyone else to eat.

Explain how the shoe business is a good ex. of monopolistic competition.

If you go to a discount store, you will find hundreds of pairs of shoes on display, made by many companies. Each company has marked its shoes with its own brand (trade name's) Each has worked to make its shoes distinctly different.

Where are production jobs most likely to be located? Europe Indonesia Japan Canada

Indonesia

Select all that apply. Select the items that describe how business investments can cause economic growth. Investments increase GDP. Investments create more jobs. Investments cause less spending. Investments can lead to more demand for goods.

Investments increase GDP. Investments create more jobs. Investments can lead to more demand for goods.

explain how corn and other farming products come close to being a perfect competition market, and explain why it is not a perfect competition market.

It is because it has a large number of buyers, it is a standardized product which means buyers will not pay more than the market price It is not because the U.S. government pays subsidies to protect from low corn prices

Select the answer that most accurately describes the effects of NAFTA. Due to the increase of trade and competition, NAFTA has unquestionably benefited all countries involved. Due to the exploitation of labor, NAFTA has been detrimental to Mexico. It is difficult to assess all the results of NAFTA, but most economists agree that NAFTA has been beneficial to the countries involved. It is difficult to assess all the results of NAFTA, but most economists agree that NAFTA has had a negative impact on the countries involved.

It is difficult to assess all the results of NAFTA, but most economists agree that NAFTA has been beneficial to the countries involved.

Give a textbook ex. of a price setter.

John Rockefeller's Standard Oil Company. Rockefeller built his monopoly by buying out or bankrupting his competitors until he controlled about 90% of U.S. oil sales.

Lisa bought a new pair of shoes for $50. Choose the statement that best describes this situation. Lisa could not afford the price of the shoes. Lisa bought the shoes by bartering. Lisa demanded the new pair of shoes.

Lisa demanded the new pair of shoes.

_____ is the study of the whole economy. Microeconomics Macroeconomics Gross Domestic Product

Macroeconomics

What was the final settlement of case?

Microsoft agreed to change the way it dealt with other software firms.

In the Microsoft case of 1997-99: Give the reason that contributed to Microsoft being guilty of engaging in monopolistic practices.

Microsoft gained control of about 90% of the market for operating systems. This allowed it to charge more for Windows than they would have in a competitive market. Microsoft also used its market power to drive potential competitors out of the market.

Using the market for milk-explain how perfect competition actually works in the market.

Milk market has many producers (about 51000 dairy farms in U.S.). They all offer the same commodity: milk (pretty much the same from each farm). No farm produces enough milk to dominate the market and achieve market power. There are too many farms and overall quantity of milk produced is too great for any one producer to influence prices by increasing or decreasing supply, so dairy farmers must be price takers and accept the market price for their milk. If they were to charge more than the market price, their buyers (firms that process milk into products) would simply buy milk from some other producer. Milk production also offers relative ease of entry. Anyone who want to be a dairy farmer can be with the right resources. Thus milk production satisfies the 4 criteria for perfect production: many producers, identical product, no control over prices, and easy entry into market

_____ is caused when the Federal Reserve increases the money supply. Monetary inflation Price inflation Fixed income

Monetary inflation

The _____ is the amount of money available in the economy, including the money in your wallet and demand deposits. Inflation Money demand Money supply

Money supply

_______________productive workers are likely to be of greater value and earn higher wages than_______________ productive workers.

More less

In three to five sentences, explain the role of the household in the circular flow model. Which role is the most important? Why?

National income, output, and expenditure are generated by the activities of the two most vital parts of an economy, its households and firms, as they engage in mutually beneficial exchange. The primary economic function of households is to supply domestic firms with needed factors of production - land, human capital, real capital and enterprise. The factors are supplied by factor owners in return for a reward. Land is supplied by landowners, human capital by labor, real capital by capital owners (capitalists) and enterprise is provided by entrepreneurs. Entrepreneurs combine the other three factors, and bear the risks associated with production.

_____ benefit(s) from large economies of scale, in which the costs of goods decrease as output increases. Natural monopolies Perfect competition

Natural monopolies

Does the shoe industry fit the model of perfect competition?

No it doesn't fit because the sheer number of shoe producers indicates that the shoe industry is neither a monopoly or an oligopoly

_______________________ are established primarily for religious, health, educational, civic, or social purposes and are exempt from certain taxes.

Not-for-profit organizations

_____ is a market structure that has few sellers who can influence the price. Products can be identical or differentiated, such as in the steel or car markets.

Oligopoly

Give an ex. of nonrival in consumption.

One person's use of a street lights glow doesn't diminish another's ability to use its light as well.

Give an ex. of technology spillover.

Other car companies might expand on the less polluting car design to make additional improvement in pollution control.

_____ is an example of a negative externality. Governments intervene in the marketplace to make companies accountable for this kind of unintended consequence. A property right Pollution A public service

Pollution

Select all the items that occur at the equilibrium price. Producers earn revenue to cover costs. Producers waste their resources. There are no shortages or surpluses. Consumers buy all the goods that are supplied.

Producers earn revenue to cover costs. There are no shortages or surpluses. Consumers buy all the goods that are supplied.

Select the situation that will occur when a shortage of bread exists, and consumers pressure producers to change their actions. Producers respond by supplying less bread. Producers respond by supplying the same amount of bread. Producers respond by supplying more bread.

Producers respond by supplying more bread.

Select the items that describe what happens at the equilibrium price.

Producers supply the exact goods that consumers buy. There are many shortages and surpluses. Producers use their resources efficiently.

_____ are another way that the government helps people to afford a place to live.

Rent subsidies

_____ are another way that the government helps people to afford a place to live. Rent subsidies Scarce resources Efficiency controls

Rent subsidies

Which of the following situations is an example of the kind of decision a government would make in regard to its property rights? Should Jan expand her marketing business? Is Sam's Save N Sell Store treating its employees fairly? Should this land be used to build a library? Should students be required to wear uniforms?

Should this land be used to build a library?

The largest amount of money the government lays out is for the transfer program, _____. And its largest expenditure is for _____. national defense, education Social Security, national defense interest payments on the national debt, roads

Social Security, national defense

which monopoly was the cause for the Sherman Anti Trust act in 1890?

Standard Oil- John D. Rockefeller

Select the statements that are true. The amount of one currency that can be traded for a unit of another currency is the exchange rate. Many exchange rates float, or constantly change. It is best to travel abroad when the exchange rate gets you more units of a foreign currency. Units of currency from different countries have the same value.

The amount of one currency that can be traded for a unit of another currency is the exchange rate. Many exchange rates float, or constantly change. It is best to travel abroad when the exchange rate gets you more units of a foreign currency.

How does competition for financing determine how resources are allocated in the market economy?

The business that people deem more profitable are the ones that get the resources

In 4 to 6 sentences, explain the savings-borrowing-investing cycle.

The saving-borrowing-investing cycle generally begins with consumer borrowing to fund their purchases and for seed capital. They then use this capital to invest in their future, which then allows them to bring in more money. They then are able to use income to pay off their loans and to save.

You are in the airline business. The price of oil just doubled. How will this most likely affect the price of your airline tickets? The price will stay the same. The price will decrease. The price will increase.

The price will increase.

A monopoly exists when _____ provides a good or service. a single seller many businesses unlimited companies

a single seller

What is the relationship among the types of products that sellers sell in a perfect competitive market?

The sellers need to be producing similar or same products as one another

In a perfect competitive market structure, how much control does a single seller have over market price?

The workings of supply and demand, rather than a single seller control the price. Equilibrium price

Why are people willing to finance business investments?

They are seeking reward, interest earned on savings account

Give an ex. of non-excludable goods.

Think of streetlights. How could you prevent some people from using the light from streetlights? You can't.

Suppose that producers are charging a price that is higher than the equilibrium price. Will this create a surplus or shortage of goods? In two or three sentences, explain your answer.

This will create a surplus of the product. Because with the price being higher there won't be as many purchases as there would be if there was a cheaper alternative.

What was Hamilton suggesting of entrepreneurs in his "Report on Manufactures" in 1791? To increase economic productivity by seeking trade agreements. To guard trade secrets and other intellectual property from competitors. To seek to cut costs by lowering wages. To increase economic output by taking ideas from more developed manufacturers

To increase economic output by taking ideas from more developed manufacturers

Consumers' decisions affect producers' decisions. True False

True

Incentives for political leaders can cause leaders to favor programs with immediate benefits and deferred costs. True False

True

Producers exchange money for natural resources, human resources, and capital goods. True False

True

Protecting intellectual property rights can result in new inventions that help the economy to grow. True False

True

Simple interest is earned on a bank balance. True False

True

Some entrepreneurs are people who both organize productive resources and produce goods and services. True False

True

The different goals of different organizations affect the costs and benefits of the people who work for these businesses. True False

True

_____ refers to the percentage of the labor force that is willing and able to work, does not currently have a job, and is actively looking for work. Unemployed Labor force Unemployment rate

Unemployment rate

How did the New Deal change things for American Workers?

WRONG.It allowed more people to become employed. It resulted in the Congress of Industrial Organizations. WRONGIt allowed for workers to gain new rights. It established the ground rules for workers to unite together to bargain for rights.

Select the economic questions that involve a consumer. What goods and services will be produced? Who will buy the goods and services? How will the goods and services be produced?

What goods and services will be produced? Who will buy the goods and services? How will the goods and services be produced?

Give an ex. of an externality.

When a factory dumps chemical waste into a river and the polluted water affects the health of people who live downstream

Select the three economic questions that each economy has to answer. Who will consume the goods and services? Will the government control the productive resources? How will the goods and services be produced? What goods and services will be produced? How will the government regulate the economy?

Who will consume the goods and services? How will the goods and services be produced? What goods and services will be produced?

Why is saving money for expensive items you want to purchase a smart financial choice?

You sacrifice some money now for greater benefits later.

Select all the items that describe the role of a producer. You want to charge a price that earns profits. You want to charge a price that does not cover fixed costs. You want to charge a price that covers variable costs. You want to have a large market share.

You want to charge a price that earns profits. You want to charge a price that covers variable costs. You want to have a large market share.

rival in consumption

a characteristic of a good or service that can't be used or consumed by more than one person at the same time; a feature of private goods

non-excludable goods

a characteristic of a good or service whose use can't be denied to anyone; a feature of public goods

nonrival in consumption

a characteristic of a good/service that can be used or consumed by more than one person at the same time; a feature of public goods

excludable goods

a characteristic of a good/service whose use can be denied to those who don't pay for it; a feature of private goods

Economic growth is _____. the GDP's peak, or highest point a continual increase in the GDP the same as the GDP

a continual increase in the GDP

externality

a cost or benefit that arises from production or consumption of a good or service that falls on someone other than the producer or consumer (bystander); a spillover or side effect of production or consumption

negative eternality

a cost or production or consumption that falls on someone other than the producer or consumer; a negative side effect

Cost-benefit analysis

a financial process in which a business estimates the cost of any action and compares it with the estimated benefits of the action

free-rider problem

a free rider is someone who enjoys the benefit of a good or service, such as roads or public schools, without paying for it; free riding becomes a problem when it leads to underproduction of that good or service

A producer in a monopoly will charge _____ price for jeans than a jeans producer in a competitive market. a higher a lower the same

a higher

What are licenses? Give ex.

a legal permit to operate a business or enter a market ex: a state might grant a license to one company to conduct all vehicle emission tests in a particular town

Fiscal policy is carried out by the _____ and involves spending and taxes. government Federal Reserve U.S. business community

government

mediation

a neutral person tries to get both sides to reach an agreement during negotiations

What is meant by "cell phone jail"?

a person can't get a new service provider, a new phone, switch to a cheaper plan, etc. because they have a contract that they can't break, since if they do they have to pay a stuck penalty. The person is in jail they are stuck with the cellphone, they have and the provider they have.

price leadership

a practice in some industries in which the largest firm publishes its price list ahead of its competition, who then match those announced prices

Fiscal policy, or changes in tax levels and spending, is carried out by the

government

market failure

a situation in which the market fails to allocate resources efficiently

Fiscal policy, or changes in tax levels and spending, is carried out by the _____________________

government

To maintain effective levels of competition in as many markets as possible, the government enforces__________________ .

antitrust laws

the most important laws that promote competition are called

antitrust legislation

imperfect competition

any market structure in which producers have some control over the price of their products; in such a market, prices are no longer set by supply and demand

picketing

action of stickers who walk in front of a workplace carrying signs that state there disagreement with the company

Sixty new grocery stores opened. This will_____________ both the price and quantity of food in the marketplace.

affect

adding things together

aggregate

ABC Carpets is a single seller that produces a good with no close substitutes. ABC Carpets has _____ of the carpet's market share. none half all

all

Total output refers to the goods and services made by _____ producers in a country. some one all

all

define industry

all firms/businesses revolve around a single good/service

marketing

all the activities needed to generate consumer demands and to move goods and services from the producer to the consumer

A budget deficit is the _____. revenue earned by the government amount overspent in a certain time the effects of fiscal policy

amount overspent in a certain time

Two new companies start to produce HDTVs. This results in _____ in the _____ HDTVs.

an increase, supply of

Two new companies start to produce HDTVs. This results in _____ in the _____ HDTVs. an increase, supply of an increase, demand for no change, supply of no change, demand for

an increase, supply of

Barriers to entry

an obstacle that can restrict a producers access to a market and limit competition

The government provides _____ to increase competition in the marketplace.

antitrust laws

cartel

arrangement among groups of industrial businesses to reduce international competition by controlling the price , production, and distribution of goods

labor union

association of workers organized to improve wages and working conditions for its members

Economies of scale involve decreasing_______________ as output rises.

average cost

manufacturing operations in Mexico where certain materials are duty- and tariff-free

maquiladoras

Many people in the town of Oldenburg moved to find jobs in other cities. This led to a population decrease and a(n)________________ in the demand for food.

decrease

What are the effects on consumers from oligopolies?

bad, since prices are raised except when there's a price war

Exchanging desserts between you and your friend is an example of _____. price distribution production bartering

bartering

Money makes trading easier by replacing__________________ with transactions involving paper money, coins, and checks.

bartering

Why is this the opponent of perfect competition?

because these markets do not allocate goods and services in the most efficient way

Select all the items that describe what producers offer to compete for more customers. higher prices better customer service more advertising better product quality

better customer service more advertising better product quality

Competition in the cell phone market results in _____. poor customer service higher cell phone prices better quality cell phones

better quality cell phones

what is the difference between blue-collar and white-collar workers?

blue-collar workers are employed in crafts, manufacturing , or confirm laborers, while white-collar workers are employed in offices, sales, or professional positions

Select the items that are considered low risk investments. stocks bonds bank accounts

bonds bank accounts

Someone who wants to make a safe (not risky) investment might consider putting his or her money into _____ or _____.

bonds, the bank

Someone who wants to make a safe (not risky) investment might consider putting his or her money into _____ or _____. stocks, the bank stocks, bonds bonds, the bank

bonds, the bank

An interest rate is the price of money _____ or _____. spent, lent borrowed, saved supplied, loaned out

borrowed, saved

Which of the following is interest meant to do?

bring profit the lender

e-commerce

business transactions conducted over the internet

wholesalers

businesses that purchase large quantities of goods from producers for resale to other businesses

retailers

businesses that sell consumer goods directly to the public

Open-market operations involve _____ and _____ securities to influence the money supply. investing, selling buying, borrowing buying, selling

buying, selling

Your business is dependent on gas to transport its goods. The price of oil decreases, which means your production costs _____. increase decrease stay the same

decrease

Your mom tells you to charge a price of 25 cents for each bracelet. Since the marginal cost of making a bracelet is also 25 cents, this price will _____. lose money cover your costs earn a profit

cover your costs

In an economy without price controls, market pressures _____ increase or decrease prices. can cannot

can

Corporations have more ways to raise _______________ to pay for productive resources than small firms or not-for-profit organizations.

capital

blue-collar workers

category of workers employed in crafts, manufacturing, and confirm labor

white-collar workers

category of workers employed in offices, sales, or professional positions

You live in a planned economy and want to open a business. The _____ decides how to allocate the productive resources. central authority market

central authority

Your friend is a business owner in a planned economy. What decides how to allocate the productive resources he uses? price central authority

central authority

Lower production costs can allow companies to _____. charge lower prices make less profits sell fewer products

charge lower prices

A set of written directions that tell a bank how to use money to pay someone is called a _________________

check

Forms of money in the United States consist of paper money, coins, and _____. bartering minting checking account balances

checking account balances

Select the factors that improve human capital. rising production costs choosing a career lower salaries training education

choosing a career training education

Select the items that describe how labor unions try to increase the wages of workers. collective bargaining reducing the supply of labor increasing the demand for labor

collective bargaining reducing the supply of labor increasing the demand for labor

You and the other shoe store owners decide to fix your shoe prices at $60 a pair in order to maximize your profits. This is called _____. a market price competition collusion

collusion

mechanization

combined labor of people and machines

Select the items that describe antitrust laws. created to prevent monopolies intended to promote competition can have unintended consequences create-one company industries encourage price setting to maximize profits

created to prevent monopolies intended to promote competition can have unintended consequences

The ABC furniture store has salespeople who are friendly and helpful. This store provides good _____. products customer service options

customer service

closed shop

company in which only union members could be hired

union shop

company that requires new employee to join after a specific period of time

agency shop

companys in which employed are not required to join the union, but must pay union dues

As the only clothes producer, you will not have _____. competition profits production costs

competition

The shoe industry has many sellers, many buyers, and similar products. Shoe companies function in a_____________ market.

competitive

The grocery store wants to increase the demand for ice cream cones, so it puts ice cream on sale. This shows that the grocery store owner thinks that ice cream and ice cream cones are _____. complements substitutes unrelated

complements

People need to have _____ in the economy to spend money. purchasing power confidence less disposable income

confidence

trust

confidence

Rajiv is a person whose wants are satisfied by using goods and services. Rajiv is a _____. producer consumer entrepreneur

consumer

buying of final goods and services by households

consumption

What are public franchises? Give ex.

contract issued by a government entity that gives a firm sole right to provide a good/service in a certain area ex: the national park service issues public franchises to companies to provide food, lodging, and other services in national parks

actions intended to slow economic growth

contractionary policy

The main difference between perfect competition and imperfect competition involves _____. types of consumers control over price the structure of the company

control over price

A movie writer can_______________ his movie script in order to benefit financially from his creation.

copyright

Select the items granted by the government to provide intellectual property rights. piracy intangible assets copyrights trademarks patents

copyrights trademarks patents

If an empty building costs nearly a million dollars to purchase, which organization would likely be the most able to purchase it? small business corporation not-for-profit organization

corporation

Select all the items that describe factors that market participants face as part of the decision process. costs and benefits incentives and disincentives constraints and rules profit goals and laws

costs and benefits incentives and disincentives constraints and rules

The main factors that determine quantity supplied are price and _____. consumers' preferences costs of productive resources population growth

costs of productive resources

You can afford to buy the latest HDTV, which means that it _____ as demand for you.

counts

You can afford to buy the latest HDTV, which means that it _____ as demand for you. counts does not count

counts

injunction

court order preventing some activity

Producers want to charge prices that _____ and, they hope, earn profits. decrease market share increase fixed costs cover their costs

cover their costs

To help the economy grow, the federal government can _____. spend less money decrease tax levels raise interest rates

decrease tax levels

A factory can produce cars and trucks. If the price of cars increases, then the supply of trucks will _____.

decrease

A factory can produce cars and trucks. If the price of cars increases, then the supply of trucks will _____. increase decrease stay the same

decrease

An oil refinery makes both gasoline and diesel fuel. The price of gas has increased, which means that the supply of diesel fuel will most likely _____. increase decrease stay the same

decrease

Consumers' incomes decrease, which causes a decrease in demand. This causes the equilibrium price to _____. increase decrease stay the same

decrease

At the grocery store, you learn that the price of butter has increased by a lot. Many people respond by buying margarine. This makes the demand for butter _____ and the demand for margarine _____. decrease, increase increase, decrease stay the same, stay the same

decrease, increase

When the light bulb industry went from being a single-seller market to a competitive market, the price of light bulbs__________________ .

decreased

A natural monopoly can occur when the average cost of making a good _____ a lot as output increases. decreases increases

decreases

As a market moves from a single seller to a competitive one, a product's price _____. stays the same increases decreases

decreases

Suppose that an increase in production costs decreases the supply of wheat, such that less wheat is supplied at each price level. After the decrease in supply, the equilibrium quantity _____. increases decreases stays the same

decreases

Suppose that lower production costs increases the supply of wheat, such that more wheat is supplied at each price level. After the increase in supply, the equilibrium price _____. increases decreases stays the same

decreases

The Federal Reserve _____ the money supply to lower inflation. decreases increases

decreases

Money encourages specialization by _____________ exchange costs.

decreasing

When the economy is shrinking, total output is _____ and total income is _____. increasing, decreasing increasing, increasing decreasing, decreasing

decreasing, decreasing

strike

deliberate work stoppage by workers to force an employer to give in to their demands

Consumers are willing and able to buy goods and services. This describes the______________ of these goods and services.

demand

Producers _____ labor, and workers _____ labor. demand, supply supply, demand

demand, supply

Jerry's Phone Service is a monopoly. Jerry finds the price of his service by looking at the price _____ at the chosen quantity. supplied demanded

demanded

To find the price, a monopolist looks at the price _____ at the chosen quantity. supplied demanded in equilibrium

demanded

Interdependence of price

dependent on what other companies se the price to; in an oligopoly

reduces or removes government control of business

deregulation

What are patents and copyrights? Give ex.

designed to protect and promote intellectual capital. ex: A patent issued to a pharmaceutical company gives that company the sole right to produce and sell a certain drug for 20 years.

a dispersion of people outside their homeland

diaspora

Losing money and working long hours are ______________ for an entrepreneur.

disincentives

A company divides its production into several separate tasks, with different people performing each task. This company uses _____.

division of labor

A company divides its production into several separate tasks, with different people performing each task. This company uses _____. production costs profit maximization division of labor

division of labor

Select all that apply. Select the items that are expenses for the federal, state, and local governments.

education roads national defense

You go clothes shopping and find a great pair of jeans. They fit you perfectly, but they also cost $100. You are willing to buy them, but you only have $50 in your wallet to spend on new clothes. The pair of jeans _____ as demand for you. count might count do not count

do not count

Not enough demand by consumers will move the market _____ the demand curve.

down

Shoe for All Company was a monopoly. But then competition was allowed to enter its market. As a result of this competition, the prices at Shoe for All Company were likely to: rise drop remain the same

drop

By providing intellectual property rights, a government provides people with the incentives to ____________________ money.

earn

You decide to charge $10 for a bracelet that costs 25 cents to make. At this price, you would _____. lose money cover your costs earn a profit

earn a profit

You produce T-shirts, and it costs $3 to make each shirt. If you choose a price of $5 for each shirt, then you will _____. lose money earn a profit just cover your costs

earn a profit

Your car still has a marginal cost of $20,000. But, the market price has now increased to $25,000. Your incentive to supply cars is to _____.

earn a profit

Your car still has a marginal cost of $20,000. But, the market price has now increased to $25,000. Your incentive to supply cars is to _____. just cover your costs earn a profit use more productive resources

earn a profit

Entrepreneurs and other sellers__________________ when consumers buy products at prices high enough to cover their production costs.

earn profits

You have a choice between two jobs, which are exactly the same except for the pay. One job pays $10 per hour, and the other job pays $20 per hour. You choose the job that pays $20 per hour, because your incentive is to _____.

earn the most money

You have a choice between two jobs, which are exactly the same except for the pay. One job pays $10 per hour, and the other job pays $20 per hour. You choose the job that pays $20 per hour, because your incentive is to _____. work the most hours earn the most money work nearby

earn the most money

Select the items that describe labor. not part of the production process earns wages or salaries a human resource and factor of production used to produce goods and services includes teachers, pilots, and doctors

earns wages or salaries a human resource and factor of production used to produce goods and services includes teachers, pilots, and doctors

Money makes trading_______________ by replacing bartering with transactions that involve paper money, coins, or checks.

easier

Select the items that apply to money made from precious metals and paper. easily divisible valuable durable hard to transport

easily divisible valuable durable

Select the items that describe the benefits of coins and paper money. easy to carry valuable easily divisible wears out easily

easy to carry valuable easily divisible

The time from one economic peak to another economic peak (think roller coaster ride) is called the _____. economic cycle Gross Domestic Product net exports

economic cycle

behavioral pattern in the economy that includes growing and shrinking phases

economic cycle

time from one economic peak to another economic peak; behavioral pattern in the economy that includes growing and shrinking phases

economic cycle

During a period of _____, real GDP per capita can increase. economic downturn economic growth population explosion

economic growth

continual rise in a nation's production of goods and services

economic growth

boycotting

economic pressure exerted by unions urging the public not to purchase the goods or services produced by a company

Factors that improve human capital and can increase labor productivity include choosing a career, training, and _____. minimum wage education production costs

education

Other standard-of-living measurements besides real GDP per capita may include _____. output of goods and services education producers' profits

education

The government defines, establishes, and______________ property rights.

enforces

The Federal Reserve helps protect people who borrow money to pay an expense by _____. enforcing the Truth in Lending Act lowering interest rates providing safe loans

enforcing the Truth in Lending Act

A person, such as the owner of a pharmacy, who organizes other productive resources to make goods and services is called a(n) _____. consumer entrepreneur labor union member

entrepreneur

At a price of $4, quantity supplied equals quantity demanded. This means that $4 is the _____. production price equilibrium price consumer price

equilibrium price

At a price of $65, consumers demand 650 pairs of shoes, and sellers supply 650 pairs of shoes. The price of $65 (where quantity supplied and quantity demanded both equal 650 pairs of shoes) is the _____. excess price equilibrium price quantity price

equilibrium price

In a free market economy, the decisions made by buyers and sellers push the price of a good or service toward the _____. price ceiling equilibrium price price floor

equilibrium price

In a market without price controls, producers can charge the _____, so that consumers will buy all of their products.

equilibrium price

In a market without price controls, producers can charge the _____, so that consumers will buy all of their products. surplus price shortage price equilibrium price

equilibrium price

Market pressures tend to move prices toward a(n) _____. price that causes shortages price that causes surpluses equilibrium price

equilibrium price

The next day, you charge $3.50 for each bracelet. You have a supply of 30 bracelets, and exactly 30 customers demand them. At the end of the day, there is no excess demand or excess supply. So, $3.50 must be the _____. equilibrium price supply price demand price

equilibrium price

What type of financing is issuing stock considered as?

equity financing because part of the ownership, or equity, of the company is being sold

Select a form of money not used in the United States. fifty-dollar bills dollar coins euros checking account deposits

euros

Suppose you produce T-shirts, and the equilibrium price for a T-shirt is $5. You haven't really done much research, so you decide to charge a price of $3 per shirt. At this price, there will be an _____ of T-shirts.

excess demand

Suppose you produce T-shirts, and the equilibrium price for a T-shirt is $5. You haven't really done much research, so you decide to charge a price of $3 per shirt. At this price, there will be an _____ of T-shirts. equilibrium excess supply excess demand

excess demand

At a price of $50, consumers demand 1,000 pair of shoes, and sellers supply 500 pairs of shoes. At $50, there is _____. excess demand (demand is greater than supply) excess supply (supply is greater than demand) no excess supply or demand

excess demand (demand is greater than supply)

At a price of $100, consumers demand 450 pairs of shoes, and sellers supply 800 pairs of shoes. At $100, there is _____. excess demand (demand is greater than supply) excess supply (supply is greater than demand) no excess supply or demand

excess supply (supply is greater than demand)

Money encourages specialization by decreasing the ___________________

exchange costs

The amount of one currency that can be traded for a unit of another currency is called the _____. market price exchange rate one-for-one rate

exchange rate

The amount of one currency that can be traded for a unit of another currency is called the _____. market share denomination exchange rate

exchange rate

patent

exclusive right to make, use, or sell an invention for a specified number of years

copyright

exclusive right to sell, publish, or reproduce creative works for a specified number of years

What are resource monopolies? Give an ex.

exist when a single producer owns or controls a key natural resource. Other firms can't enter market because they don't have access to the resource. ex: If a firm owns the only stone quarry in a town, it may be able to monopolize the local market for buildings tone.

actions intended to encourage (or expand) economic growth

expansionary policy

Give an ex. of private goods.

food

How does perfect competition benefit society?

forcing prices down to one that just covers the costs of production plus a small profit. It helps consumers pay correct price and they yield economic efficiency

What are government created monopolies?

formed when the government grants a single firm or individual the exclusive right to provide a good/service. Government does this when it considers such monopolies to be in public interest. Government created monopolies may be formed in 3 ways

In the Microsoft case of 1997-99: what were the findings of the trial judge?

found that Microsoft had violated antitrust laws. He ordered the company to be broken into 2 separate businesses. Microsoft appealed to a higher court.

intermediate-term financing

funds borrowed by a business for 1 to 10 years

long-term financing

funds borrowed by a business for a period of more than 10 years of funds raised by issuing stock

short-term financing

funds borrowed by a business for any period of time less than a year

Voluntary exchanges happen when both parties expect to _____. gain lose barter

gain

What steps are involved in market research?

gather record and analysis of data. They send out questioners and test new products in certain locations

market research

gathering, recording, and analyzing data about the types of goods and services that people want

statements or concepts obtained by inference from causes

generalizations

Fern agrees to sell her guitar for $30 because she expects to gain more than she _____ from this sale. gives up benefits earns

gives up

What may be the ultimate negative externality?

global warming

Select the items that people consume to satisfy their economic wants. goods money services factories

goods services

private goods

goods and services that are sold in markets; distinct from public goods

public goods

goods and services that are used collectively and that no one can be excluded from using; public goods are not provided by markets

How does a company monopolize in monopolistic competition?

goods offered by the competing brands are distinct enough to appear unique. Customers develop brand loyalty. Such loyalty gives favored company some degree of market power. In effect, the company monopolizes its brand and can charge more for it.

consumer goods

goods produced for individuals and sold directly to the public to be used as they are

A main goal of a not-for-profit organization dedicated to helping people find affordable homes is to _____. earn a lot of revenue help people find shelter be very profitable

help people find shelter

Brian is considering a job offer. Incentives for taking the job may include _____. long commute high salary benefit package safe work environment manageable work schedule

high salary benefit package safe work environment manageable work schedule

An incentive to accept a new job is _____. high wages expensive commute long hours

high wages

Select the items that describe incentives for an employee to accept a job offer. high wages expensive commute very long workdays good benefit package safe work environment

high wages good benefit package safe work environment

The decision by shoe store owners to fix their prices will result in consumers paying _____ prices. lower higher the same

higher

What was the outcome of the appeal by Microsoft?

higher court overturned breakup order but upheld the antitrust verdict

Select the items that can result in higher interest earned. higher interest rate higher balance greater number of withdrawals

higher interest rate higher balance

Labor unions want _____ wages for employees, but producers could earn more profits by offering _____ wages.

higher, lower

Labor unions want _____ wages for employees, but producers could earn more profits by offering _____ wages. higher, lower lower, higher

higher, lower

A supply curve for the car industry would show that automakers supply the most cars at the _____ price. highest lowest marginal

highest

Individuals and companies respond to incentives in order to allocate their scarce resources in ways that provide the __________________ possible returns to them.

highest

Rent control sets the _____ amount of rent that a property owner can charge.

highest

Rent control sets the _____ amount of rent that a property owner can charge. highest lowest

highest

Employers want workers that provide the _____. highest returns lowest productivity fewest references

highest returns

professionals

highly educated individuals with college degrees and usually additional education or training

Do holders of common stock have any right in a cooperation?

holders of common stock have the right to vote in company elections, and financial managers have to gain in approval of the owners of common stock

Opponents of rent control believe that it causes _____. equilibrium rents economic efficiency housing shortages

housing shortages

Labor is a _____ used to produce goods and services. salary reference human resource

human resource

Select the items that describe perfect competition. identical products many sellers cannot influence price price maker

identical products many sellers cannot influence price

Select all that apply. Select the items that describe perfect competition.

identical products open entry and exit price taker

market structures that lack one of the conditions needed for perfect competition are examples of _____ ______

imperfect competition

When Americans buy German-made cars, Americans are _____ these cars. exporting importing taxing

importing

Suppose the other shoe stores are selling shoes that are not made well. But your shoes last a long time. Soon, almost everyone in town is buying shoes from you. This encourages your competitors to _____ the quality of their shoes. maintain reduce improve

improve

Bartering involves exchanging goods and services. But today, ________________ can be exchanged for goods and services.

money

By establishing property rights, governments provide___________________ for people to create new goods and services.

incentives

Liability rules, property rights, contract enforcement, and standards for weights and measures affect the for people to produce and exchange goods and services.

incentives

Liability rules, property rights, contract enforcement, and standards for weights and measures affect the_______________________ for people to produce and exchange goods and services.

incentives

Select the items that describe a public good. includes roads, education, and the police force provided by the government in market economies can provide benefits to many people at the same time can only be used by one person at a time

includes roads, education, and the police force provided by the government in market economies can provide benefits to many people at the same time

Which of the following describe a public good?

includes roads, education, and the police force provided by the government in market economies can provide benefits to many people at the same time

Total _____ is the money earned from all producers in a country. sales income quantity

income

The _____ adds up the money earned by producers plus taxes paid to the government. income approach product approach expenditure approach

income approach

Either more sellers in the market or lower production costs can cause supply to _____ at each price level. increase decrease stay the same

increase

Fifty new food businesses have entered the food market. The supply of food at each price level will _____. increase decrease stay the same

increase

Over the summer, 100 new families moved into town. This will _____ the demand for goods and services, at each price level.

increase

Over the summer, 100 new families moved into town. This will _____ the demand for goods and services, at each price level. increase decrease

increase

Suppose you produce T-shirts, and you are charging less than the equilibrium price. By buying all of your products and demanding more, consumers are pressuring you to _____ your supply of T-shirts.

increase

Suppose you produce T-shirts, and you are charging less than the equilibrium price. By buying all of your products and demanding more, consumers are pressuring you to _____ your supply of T-shirts. increase decrease keep constant

increase

You just received a raise at work and consider meat a normal good. This means that your demand for meat will _____. stay the same decrease increase

increase

Expansionary policies are intended to _____ economic growth, and contractionary policies are intended to _____ economic growth. increase, increase decrease, increase increase, decrease

increase, decrease

Inflation is a(n) _____ in the prices of many goods and services, which _____ purchasing power. increase, decreases increase, increases decrease, decreases

increase, decreases

Economic growth can result from a(n) _____ in government expenditures and a(n) _____ in net exports. increase, increase decrease, decrease increase, decrease

increase, increase

Suppose that an increase in production costs decreases the supply of wheat, such that less wheat is supplied at each price level. After the decrease in supply, the equilibrium price _____ . increases decreases stays the same

increases

Suppose that lower production costs increases the supply of wheat, such that more wheat is supplied at each price level. After the increase in supply, the equilibrium quantity _____. increases decreases stays the same

increases

When banks make loans, the money supply ______________

increases

By having antitrust laws, the government _____ in the marketplace. increases competition provides public goods offers safer products

increases competition

When the Federal Reserve _____ the money supply, it also _____ interest rates. increases, lowers decreases, lowers does not change, raises

increases, lowers

When the economy is growing, total output is _____ and total income is _____. increasing, decreasing increasing, increasing decreasing, decreasing

increasing, increasing

oligopoly

industry dominated by a few suppliers who exercise some control over price

increase in the prices of commonly used goods and services

inflation

The airline industry and the oil industry are an example of interrelated markets. This means that a change in the price of oil _____ the price of airline tickets. does not change influences is not related to

influences

market survey

information gathered by researchers about possible users of a product based on such characteristics as age, gender, education, income, and geographical origin

A song is an example of a(n) ________________

intangible asset

creations of the mind, such as inventions and literary and artistic works

intellectual property

The cost of borrowing money is called _____. risk deposit interest

interest

The price of money borrowed or saved is called _____. interest loan money supply

interest

price of money that is borrowed or saved

interest rate

Something that people put money into in hopes of making more money is called a(n) _____. fad return investment

investment

money put into something financial, in hopes of earning more money

investment

Gross Domestic Product includes consumption, net exports, _____, and _____. exports, imports personal income taxes, public goods investments, government expenses

investments, government expenses

putting money into something financial, in hopes of earning more money

investmnet

Banks channel money from savers to borrowers to _____.

investors

Banks channel money from savers to borrowers to _____. investors the government scarce resources

investors

Adam Smith called the force that guided the competition for scarce resources in a free market the _____________ hand.

invisible

Select the capital sources for corporations. issuing stocks issuing bonds private donations loans grants

issuing stocks issuing bonds private donations loans

Bartering is the exchange of goods and services without the use of _____. revenue regulations money

money

people 16 or older who are actively seeking work

labor force

Division of labor can lead to higher wages because it increases _____. the supply of labor labor productivity Social Security

labor productivity

output of goods and services divided by the number of workers used to produce the output

labor productivity

conglomerate

large corporation made up of smaller corporations dealing in unrelated businesses

At the lowest price for a TV, producers will supply the _____ televisions.

least

At the lowest price for a TV, producers will supply the _____ televisions. most least

least

Either a decrease in population or a decrease in income will cause consumers to demand _____ goods and services at each price level. more less the same

less

The cost of electronic parts increased. Now, producers of electronic products will supply _____ products.

less

The cost of electronic parts increased. Now, producers of electronic products will supply _____ products. more less

less

The price of gas just increased. This will most likely make people buy _____ gas in the future. the same amount of more less

less

A legal obligation that involves repaying a debt is called a _____. liability profit property right

liability

Select items that affect incentives for people to produce and exchange goods and services. liability rules property rights contract enforcement standards for weights and measures

liability rules property rights contract enforcement standards for weights and measures

Adina deposits $1,000 in the bank. The bank can then use her savings to make _____ to/for _____. capital goods, savers productive resources, borrowers loans, investors

loans, investors

You produce elastic bracelets that cost 25 cents to make. Your friend tells you to charge a price of 10 cents for each bracelet. At this price, you will _____. lose money cover your costs earn a profit

lose money

You pay $50 to buy a new pair of shoes. The shoes cost the producer $75 to make. This means that the producer is _____. losing money earning a profit just covering costs

losing money

economies of scale

low producing costs resulting from large size of output

Phil works in a _____ job and earns minimum wage.

low-paying

Phil works in a _____ job and earns minimum wage. low-paying high-paying

low-paying

If a lot of people buy shoes from your competition, this will encourage you to _____ prices. raise lower keep constant

lower

Select all the items that describe the benefits that consumers may receive from more sellers in the bracelet market. lower price for bracelets better quality bracelets improved customer service less variety of bracelets

lower price for bracelets better quality bracelets improved customer service

You produce a new graphic T-shirt and decide to charge a price of $50. No one is buying the shirts. This signals you to _____. raise the shirt's price lower the shirt's price not change the shirt's price

lower the shirt's price

Unfortunately, no one buys your bracelets at a price of $10. This is a signal for you to _____. make more bracelets lower your price increase your costs

lower your price

You decided to charge $100 for your new computer game, but people are not buying it. What could you do to encourage people to buy your game? raise your price to $150 lower your price to $75 keep the price at $100

lower your price to $75

Supporters of rent control say that it _____ the price of renting an apartment.

lowers

Supporters of rent control say that it _____ the price of renting an apartment. raises lowers does not change

lowers

deregulation usually ____ prices

lowers

the study of the whole economy

macroeconomics

Select the items that are jobs of the Federal Reserve. increase personal and sales taxes manage risk in the financial markets watch banks and protect customers provide banking services influence the money supply

manage risk in the financial markets watch banks and protect customers provide banking services influence the money supply

product differentiation

manufacturers use of minor differences in quality and features to try to differentiate between similar goods and services

Perfect competition has _____ sellers. no one many

many

A producer charges $500 for a cell phone, but buyers are not buying any cell phones at this price. So at this price, the producer is willing to supply _____ phones, and consumers are willing to buy _____ phones. zero, many zero, zero many, zero

many, zero

Jerry's Phone Service is a monopoly. To find the amount of phone service that this company will provide, Jerry finds the point at which marginal revenue equals _____. marginal cost fixed costs profits

marginal cost

To find the quantity chosen by a monopolist, find the point at which marginal revenue equals _____. equilibrium marginal cost profits

marginal cost

To figure out price and quantity in a monopoly, a business finds the point at which marginal cost equals _____.

marginal revenue

A place where people exchange goods and services is called a _____. competitor market value

market

Why does the world face a climate crisis?

market failure

Rockin' Radio has one hundred percent of the market share in the music industry. This means that this music business also has a lot of _____. market power fixed costs variable costs

market power

Made-Up Music owns 25 percent of the music market. Twenty-five percent refers to this company's _____. market costs free market market share

market share

monopolistic competition

market situation in which a large number of sellers offer similar but slightly different products and in which each has some control over price

Monopoly

market situation in which a single supplier makes upon entire industry for a good or service with no close substitutions

perfect competition

market situation in which there are numerous buyers and sellers, and no single buyer or seller can affect price

monopolistic competition (chart)

market structure: monopolistic competition number of sellers: many type of product: similar but differentiated sellers' control over prices:limited barriers to enter or exit market: few

monopoly (chart)

market structure: monopoly number of sellers: one type of product: standardized, but no close substitutes sellers' control over prices: significant barriers to enter or exit market: very many- market regulated/restricted

oligopoly (chart)

market structure: oligopoly number of sellers: few type of product: standardized for industry; differentiated for customers sellers' control over prices: some barriers to enter or exit market: many

perfect competition (chart)

market structure: perfect competition number of sellers: many type of product: standardized sellers' control over prices: none barriers to enter or exit market: few

what is the relationship between marketing and utilities?

marketing makes the consumer feel like having this would ad to their satisfaction, aka, utility

Trading stocks, buying and selling currency, and purchasing a new computer from the store are all examples of _____. regulations markets capital goods

markets

products that are bought and sold, including food, clothes, computers, and cars

material goods

A monopolist's goal is to _____. lose money just cover costs maximize profits

maximize profits

You are the only clothes producer in the industry. You can choose a price that _____. reduces your revenue maximizes your profits lowers your costs

maximizes your profits

Countries with the highest gross domestic product (GDP) _____ have the highest GDP per capita. may not always never

may not

When Ricky sells his used desk for $50, money is a _____. medium of exchange store of value unit of account

medium of exchange

When you use paper money to pay for food, the money is a _____. medium of exchange store of value unit of account

medium of exchange

local union

members of a union in a particular factory, company, or geographic area

the study of individual parts of the economy

microeconomics

Price controls that exist in the economy include price floors such as _____ and price ceilings such as _____.

minimum wage, rent control

Price controls that exist in the economy include price floors such as _____ and price ceilings such as _____. rent subsidies, equilibrium price rent control, tax credit minimum wage, rent control

minimum wage, rent control

When a central bank influences the growth of the money supply, it is carrying out _____. monetary policy fiscal policy

monetary policy

When the Federal Reserve influences the growth of the money supply, it is carrying out_____________________

monetary policy

when the central bank uses money supply and interest rates to affect a country's economy

monetary policy

Select the items that describe potential benefits of providing intellectual property rights. more innovations more economic growth more job opportunities more sales to other countries more piracy opportunities

more innovations more economic growth more job opportunities more sales to other countries

Supporters of minimum wage say that it provides _____ for people with low-paying jobs.

more money

Supporters of minimum wage say that it provides _____ for people with low-paying jobs. more money more jobs less personal income

more money

Supporters of minimum wage believe that it provides _____. higher rents more personal income fewer jobs

more personal income

At a product's lowest price, you would expect people to demand the____________ of that product.

most

total amount of money the federal government owes

national debt

he federal government spends most of its money on _____, lays out the most money for the transfer program _____, and receives a large part of its revenue from _____. national defense, Social Security, personal incomes taxes interest from the national debt, payroll taxes, education the national debt, education, public goods

national defense, Social Security, personal incomes taxes

Give an example of cartel formation.

nations that produce coffee, sugar, and tin have all tried to form cartels

Select all the items that producers use to make goods and services. money natural resources human resources capital goods

natural resources human resources capital goods

Governments try to protect people from _____ that can be harmful to the environment and to people.

negative externalities

One of the problems with using real GDP per capita to determine the quality of life is that it does not fully account for _____. negative externalities consumption of material goods business investments

negative externalities

The Smoot Hawley Tariff _____. successfully improved sales of American goods. positively influenced foreign trade. kept all goods from foreign markets out of the United States negatively affected American industry

negatively affected American industry

exports minus imports

net exports

In perfect competition, sellers have _____ control over price.

no

Are shoes commodities?

no because of all the different types of shoes, they are not commodities.

At a price of $65, consumers demand 650 pairs of shoes, and sellers supply 650 pairs of shoes. At $65, there is _____. excess demand (demand is greater than supply) excess supply (supply is greater than demand) no excess supply or demand

no excess supply or demand

Gross Domestic Product in current dollars

nominal GDP

Suppose that consumers' incomes increased, such that more video games were demanded at each price level. This means that video games are a(n) _____ good.

normal

Suppose that consumers' incomes increased, such that more video games were demanded at each price level. This means that video games are a(n) _____ good. inferior normal

normal

Part of the _____ is an economic downturn, which causes _____. GDP growth, inflation economic cycle, cyclical unemployment Federal Reserve, interest rates

not GDP

Brian has given up looking for a job. He has searched for more than a year and does not believe that a job for him exists. He is _____ in the unemployment rate. counted not counted

not counted

Real GDP per capita for the United States is calculated by dividing real GDP by the _____. number of people living in one state number of producers in the country number of people living in the country

not one state

_____ are sources of revenue for both federal and state governments. Individuals pay this tax from the money they earn. Property taxes Sales taxes Personal income taxes

not property taxes

test-marketing

offering a product for sale in a small area for a limited period of time to see how well it sells before offering it nationaly

Coke and pepsi are in what market structure?

oligopoly

People who make airplanes are in what market structure?

oligopoly

Price leadership is in what market structure?

oligopoly

The car market is an example of _____ because it has few sellers who offer differentiated products. oligopoly monopoly monopolistic competition

oligopoly

a market structure in which only a few sellers offer a similar product

oligopoly

occurs when there is only one seller of a product that has no close substitutes

oligopoly

which type of market is more competitive? An oligopoly or a Monopoly?

oligopoly

A monopoly has _____ seller(s), but perfect competition has _____ seller(s). one, zero many, one one, many

one, many

The graph above shows how the price of video games varies with the demand quantity. Suppose that the price of video games is set at $100 and not allowed to decrease. This is an example of a _____. price floor price ceiling

price floor

Shoes made in an American-owned factory located in Mexico are part of _____. only the Gross Domestic Product only the Gross National Product both the Gross Domestic Product and the Gross National Product

only the Gross National Product

The Federal Reserve offers banking services to other banks U.S. government foreign countries

other banks U.S. government foreign countries

The government protects the rights of inventors by issuing _____. copyrights patents trademarks

patents

Select the items that describe the ways that the U.S. government protects intellectual property rights. patents antitrust laws copyrights trademarks protection of trade secrets

patents copyrights trademarks protection of trade secrets

What two marketing strategies depend on price?

penetration price and price leadership

skilled workers

people who have leaned a trade or craft either through a vocational school, or an apprenticeship to an experienced worker

service workers

people who provide services directly to individuals

unskilled workers

people whose job requires no special training

semiskilled workers

people whose jobs require some training often using modern technology

the ideal market economy

perfect competition

what is the most competitive market structure

perfect competition

You earn money from working part-time at the local grocery store. You also receive a weekly allowance from your parents. Both your job earnings and your allowance are part of your _____.

personal income

You earn money from working part-time at the local grocery store. You also receive a weekly allowance from your parents. Both your job earnings and your allowance are part of your _____. rent minimum wage personal income

personal income

Select the sources of tax revenue for federal, state, and local governments. personal income sales payroll education

personal income sales payroll

tax paid by individuals on money they earn

personal income tax

The largest sources of revenue for the federal government come from _____ and _____.

personal income taxes, payroll taxes

what do union workers do when they go on strike

picketing or boycotting

What are the most important steps in the production process?

planning, purchasing, quality control, and inventory control

You chose to buy a red pair of shoes, rather than a black pair. Your demand was based on _____.

preference

You chose to buy a red pair of shoes, rather than a black pair. Your demand was based on _____. income population preference

preference

Cell phone producers charge a _____, which consumers pay to buy the phones. profit production cost price

price

Markets distribute goods and services based on _____. revenue price profits

price

The Earned Income Credit is one alternative to ___________________controls.

price

You are a jeans producer. When you sell your jeans, consumers pay the _____ that you charge. revenue profit price

price

For several years in the late twentieth century, the government set the price of gasoline below the equilibrium price. This is an example of a _____. price floor price ceiling tax

price ceiling

Rent control, which sets apartment rents below the equilibrium price, is an example of a _________________

price ceiling

Joshua pays a higher concert ticket price than Raffi because Joshua buys his ticket on the day of the concert. This is an example of _____. commission wage discrimination price discrimination

price discrimination

The graph above shows how the price of video games varies with the demand quantity. Suppose that the price of video games is set at $100 and not allowed to decrease. This is an example of a _____.

price floor

A supply curve for the car industry would show the quantity of cars supplied at different _____. marginal costs demands prices

prices

Select all that apply. Select the items that are included in macroeconomics. quantity of couches produced price of cars prices of goods and services used by most people number of people without jobs in the country

prices of goods and services used by most people number of people without jobs in the country

Property rights are _____. agreements enforceable by law privileges to decide how resources are used legal obligations to repay a debt

privileges to decide how resources are used

collective barganing

process by which unions and employers negotiate the conditions of employment

production

process of changing resources into goods that satisfy the needs and wants of individuals an businesses

When you begin working, you will most likely be both a _____ and a _____ in a market economy. producer, consumer single seller, competitor central authority, consumer

producer, consumer

Select the situation that describes an efficient use of resources. producing more cell phones than consumers demand producing the same number of cell phones that consumers demand producing fewer cell phones than consumers demand

producing the same number of cell phones that consumers demand

The _____ adds up the market prices of final goods and services. income approach product approach expenditure approach

product approach

what 2 things distinguish Monopolistic Competition?

product differentiation and nonprice competition

automation

production process in which machines do the work and people oversee them

assembly line

production system in which the goods being produced moves on a conveyer belt past workers who reform individual tasks in assemble it

A monopolist's goal is to maximize _____.

profits

A monopolist's goal is to maximize _____. marginal revenue marginal cost profits

profits

Entrepreneurs and other producers accept risks because they hope to earn _____. prices patents profits

profits

Which of the following would not be a role of government in the circular flow of the economy?

promoting economic equity and security

the right to exclude others from using the good or service and the right to transfer the ownership or use the resources to others

property right

Select all that apply. Select examples of public goods provided to everyone by the government.

protecting the country mail delivery public schools

a duty imposed on imports to raise their price.

protective tariffs

cost of living adjustment ( COLA)

provision calling for a wage increase each year if the general level of prices rises

a policy that requires businesses to reveal product information

public disclosure

something that can be used by everyone, provides benefits to more than one person at a time, and whose use cannot be restricted to only those people who have paid for it

public good

The U.S. government pays for _____ that producers would most likely not provide in the marketplace, such as building roads. public goods and services borrowing money revenue

public goods and services

person's ability to buy goods and services, given his or her income

purchasing power

Suppose you are a T-shirt producer in a market without price controls. You are charging a price that is below the equilibrium price for T-shirts. Market pressures will eventually _____ the price of your T-shirts

raise

Suppose you are a T-shirt producer in a market without price controls. You are charging a price that is below the equilibrium price for T-shirts. Market pressures will eventually _____ the price of your T-shirts. lower raise not change

raise

What is the difference between retailers and wholesalers?

retailers are businesses that sell goods directly to the public, while wholesalers purchase large quantities of goods from other producers and sell them to other businesses

A _____ is an example of a public good. road computer restaurant

road

Select all the items that are public goods or services. roads education military police force

roads education military police force

channels of distribution

routes by which goods are moved from producers to consumers

You start your own company and decide that administrative assistants will earn between $30,000 and $40,000 each year. This scope refers to the administrative assistant's _____. salary range base salary weekly wages

salary range

You work as a salesperson in an electronics store. You earn an hourly wage plus a commission based on a percentage of your _____. salary wages sales revenue

sales revenue

product life cycle

scene of stages that a product goes though from first introduction to complete withdrawal from the market

In a market economy, market prices are determined through buying and _____ decisions. government selling consuming

selling

penetration pricing

selling a new product at a low price to attract customers away from an established product

What are three general types of debt financing?

short term, intermediate term, and long term financing

If you borrowed $5,000 for four years, that would be a _________________. short-term loan long-term loan critical loan interest-based loan

short-term loan

Consumers demand more shoes than sellers are willing to supply, at the given price. This means that there is a(n) _____ of shoes. surplus shortage equilibrium

shortage

Opponents of minimum wage say that it causes a job _____, which can increase unemployment.

shortage

Opponents of minimum wage say that it causes a job _____, which can increase unemployment. shortage surplus

shortage

People are demanding more apartments than sellers are willing to offer. This means that there is a _____ of apartments. surplus shortage mimimum quantity

shortage

Price controls can cause _____. equilibrium prices efficient markets shortages and surpluses

shortages and surpluses

Price controls can cause _____ or _____.

shortages, surpluses

Price controls can cause _____ or _____. efficiency, shortages shortages, surpluses equilibrium prices, surpluses

shortages, surpluses

You own a pizza store in town. Another pizza store would be your competition because it offers _____ products. similar different

similar

You are more likely to sell your goods at very high prices if you are in a _____ market. single seller very competitive

single seller

ABC Software charges a price for its video games that maximizes its profits. This company most likely functions in a________________ market.

single-seller

lockout

situation that occurs when management prevents workers from returning to work until they agree to a new contract

Select the producers that have earning profits as a main goal. small firms corporations not-for-profit organizations

small firms corporations

Select the organizations that use grants as a means to raise money. small firms corporations not-for-profit organizations

small firms not-for-profit organizations

Please refer to the graph to answer the question. When there was an excess supply of shoes, there was also a(n) _____ of shoes. In a market without price controls, the market will adjust until it reaches the ___

surplus, equilibrium price

In perfect competition, producers _____ the price determined by buying and selling decisions in the marketplace. take make

take

Select all that apply. Select examples of unpaid work that are not included in the real GDP per capita. working in a clothing store taking care of your parents washing dishes doing laundry

taking care of your parents washing dishes doing laundry

Suppose the United States government imposes a tax on each Guatemalan-made T-shirt that is sold in the United States. This is called a _____. subsidy quota tariff

tariff

The two main sources of government revenue are _________________

taxes and borrowing

The two revenue sources for the government are _____ and _____. taxes and spending taxes and interest taxes and borrowing

taxes and borrowing

Minimum wage is one way for the government to help people with low-paying jobs to afford basic goods. Another way to achieve this goal is with _____.

the Earned Income Tax Credit

Minimum wage is one way for the government to help people with low-paying jobs to afford basic goods. Another way to achieve this goal is with _____. less personal income more taxes the Earned Income Tax Credit

the Earned Income Tax Credit

The Federal Reserve is the central bank of _____. Sweden the United States the European Union

the United States

profits

the amount earned after a business subtracts its costs from its revenues

utility

the amount of satisfaction one gets from a good or service

what is product differentiation?

the attempt to distinguish a product from similar products

Sally works for a big corporation because she wants to earn a high salary. Fred works for a not-for-profit organization because he wants to help people in medical need. This illustrates that the goals of different organizations affect _____. the benefits of the people who work for these businesses the amount of goods and services that consumers purchase the quantity of capital raised to pay for expenses

the benefits of the people who work for these businesses

division of labor

the breaking down of a job into small tasks preformed and people oversee them

what are the major kinds of labor unions?

the craft union and the industrial union

In two to three sentences, explain the difference between gross pay and net pay.

the difference between net pay an gross pay is the amount that is taken out of your wage for taxes, benefits an other voluntary deductions that apply as well.. as for net pay, would be the amount that an employee takes home after deductions.. amount that's actually earned.

market structure

the extent to which competition prevails in particular markets

What is the best hope to stop climate change?

the free market

Some employers, labor unions, and _____ can help workers receive fair pay and safe work environments. natural resources consumers the government

the government

economies of scale

the greater efficiency and cost savings that result from large scale or mass production

merger

the legal combination of two more companies that become one corporation

market structure

the organization of a market, based mainly on the degree of competition

Define the 4 firm concentration ratio.

the proportion of a market controlled by a fixed number of companies

consumer sovereignty

the role of the consumer as ruler of the market when determining the types of goods and services produced

Guy received his home loan for $200,000. Determine which of the following was the mortgage company's most important reason for giving him his loan.

the total value of current assets and all income

non-price competition

the use of product differentiation and advertising to attract customers

Julio is given $10 in allowance money. He heads down to the store and finds two games that he can buy. In comparing the prices of these goods, Julio is using money as a _____. medium of exchange store of value unit of account

unit of account

When you compare the prices of two different pairs of shoes, money is a _____. medium of exchange store of value unit of account

unit of account

promotion

use of advertising to inform consumers that a new or improved or service is available and to persuade them to purchase it

Suppose that Joe does the same job as Susan but receives a lower salary. This is an example of _____. price discrimination wage discrimination wage structure

wage discrimination

Select the items that increase personal income. wages allowance Earned Income Tax Credit rent subsidy

wages allowance Earned Income Tax Credit rent subsidy

Employers are willing to pay_______________ and ______________ to workers, because they expect to be able to sell the goods and services at prices high enough to cover the costs of production.

wages salaries

People receive income by exchanging human resources for________________ or________________ .

wages salaries

Suppose you are a T-shirt producer in a market without price controls. When you sell T-shirts at the equilibrium price, you will not _____ any resources because you will supply what consumers demand.

waste

Suppose you are a T-shirt producer in a market without price controls. When you sell T-shirts at the equilibrium price, you will not _____ any resources because you will supply what consumers demand. offer use waste

waste

Select all the items that describe price. what a producer receives from selling a good what a consumer pays when buying a good the distribution method in a planned economy the distribution method in a market economy

what a producer receives from selling a good what a consumer pays when buying a good the distribution method in a market economy

Jerry's Phone Service is a monopoly. Select the items that describe the price and quantity chosen by Jerry. will result in efficient use of resources will result in equilibrium price will maximize profits will cause shortage of goods

will maximize profits will cause shortage of goods

Labor unions engage in collective bargaining. They represent the _____ and negotiate with a business.

workers

Labor unions engage in collective bargaining. They represent the _____ and negotiate with a business. sellers consumers workers

workers

You charge $60 for a new pair of shoes, and your competition charges $45 for the same pair of shoes. Who will a consumer most likely buy from? your store your competition

your competition

You and a friend go clothes shopping and find a great pair of jeans. They fit you perfectly, but they also cost $100. You are willing to buy them, but you only have $50 in your wallet to spend on new clothes. Your friend likes the jeans and has the money to buy them. The jeans would count as a demand for _____. you, because you are willing to buy them and they fit you perfectly your friend, because he likes the jeans and has the money to buy them both of you, because you both like the jeans

your friend, because he likes the jeans and has the money to buy them

You produce a car that costs $20,000 to make. The market price for the car is $15,000. At this price, you would supply _____ cars.

zero

You produce a car that costs $20,000 to make. The market price for the car is $15,000. At this price, you would supply _____ cars. many one zero

zero

Your marginal cost is $4.00 and the market price for your good is $2.00. At this market price, you are willing to supply ________________goods.

zero