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Economics midterm
Economics midterm
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1
The ability of a country to produce a good or service for the lowest resource cost is called
comparative advantage.
absolute advantage.
opportunity cost.
competitive advantage.
2
____________ is the manufacturing of large quantities of standardized goods.
Assembly line
Mass production
Service industry
Production costs
3
Company introduces a new patented product or service that did not exist before
Technological Monopoly
Government Monopoly
Natural monopoly
Geographic monopoly
4
When business collude they enter into a secret agreement and the majority of time the consumer suffers.
True
False
5
A business in which two or more people own and operate the business together.
Franchise
Sole Proprietorship
Corporation
Partnership
6
Type of monopoly when a company is able to provide a product to a market at a lower cost than any competitors
Government Monopoly
Natural monopoly
Geographic monopoly
Technological Monopoly
7
Desires that can be satisfied by consuming a good or service
Service
Needs
Choice
Wants
8
The two types of capital are human capital and physical capital
False
True
9
Competitive advantage is the ability/attribute that puts a company in a better position than its competitor.
Maybe
True
False
not sure
10
Self-Interest, supply and demand, self-reliance, free trade, competition, and private ownership are key features in
socialism
mercantilism
capitalism
communism
11
Which of the following are advantages of a corporation?
Less complicated structures than sole proprietorships or partnerships
Can usually raise funds more easily than sole proprietors or partners
They have limited liability for the debts of the corporation
A corporation can continue to exist after the death of its owners
12
Which of the following are disadvantages of a partnership?
They share responsibilities
If one partner makes a mistake, all partners are responsible
Uncertain life/transferability
Partners may have conflicts
13
Economic Growth
is required for a higher standard of living and for a growing population.
False
True
14
Decisions made or course of action taken when faced with set alternatives
Service
Choice
Needs
Inflation
15
Private ownership
is the ownership of property by non-governmental legal entities
False
True
16
_______ are desires that can be satisfied by consuming a good or service
scarcity
needs
wants
desires
17
The limited nature of society's resources is called
wants
goods
choices
scarcity
18
_________ is an economic and political system that is based on socialism & Karl Marx.
Laissez faire capitalism
Mixed economy
Free trade
Communism
19
What does supply mean?
How much of a product there is
How much people want something
How much school supplies my parents buy me
20
Trade in economics means
When I take someones lunch and give them my food
When people travel to different countries
exchanging goods/ services b/w countries
Returning at item at a store
21
Being able to sell or buy goods without any interference from the government is called _____________.
free trade
terms of trade
capitalism
bartering
22
Economics can be broken down into two categories, they are called microeconomics and macroeconomics.
False
True
23
Which of the following is not a characteristic of inflation?
Increased government spending
Increase in the amount of currency in the economy (monetary inflation)
Increase of goods/services
business has no competition in manufacturing a good
24
Which of the following is not one of the 4 economic systems
Command
Mercantilism
Traditional
Mixed
25
When demand increases, price.....
increases
decreases
does something
stays the same
26
An economic system based on the private ownership of the means of production and their operation for profit.
Macroeconomics
Mixed economy
Communism
Capitalism
27
Complementary goods are goods that are used and normally bought together.
True
False
28
In a market economy, the government is able to look after the collective interest of the nation.
True
False
29
A business activity that lowers production costs or increases demand for a product.
Innovation
Oligopoly
Franchise
Partnership
30
Determinants of Demand
Income of consumers
Market expectations
Price of related goods
Number of Consumers
31
Perfect Competition: businesses compete against each other, greatest amount of innovation
True
False
32
Export means
Giving away my food to other people
Flying on an airplane
To sell goods that your country produces to other countries
33
Economic system in which the government and individual share making economic decisions
Traditional
Market
Mixed
Command
34
The factors of production are land, labor, capital and entrepreneurship
True
False
35
Opportunity Cost is
The cost of an opportunity
What you give up when you choose one thing over another
Doing everything I possibly can
36
Which of the following are disadvantages of a franchise?
Franchisees may have to follow a lot of rules laid down by the franchisors
Franchises can be expensive to buy
If a franchisor’s business fails, so will the franchisee’s business
Franchisors supply training and financial knowledge
37
Price Stability is achieved when there is no inflation or deflation
False
True
38
Monopoly that is caused by the limited need for a product/service because of the remote location
Technological Monopoly
Government Monopoly
Natural monopoly
Geographic monopoly
39
You live in a state that grows oranges, you want apples, the state should______with another state
Trade
Export
steal them
Import
40
A producer is
A plant
a maker of movies
When I do arts and crafts
The business or company that makes the good/ service
41
Market where a small number of business dominate an industry
Monopoly
innovation
Oligopoly
Patent
42
Market is a form of trade where one good is exchanged for another good
False
True
43
Law of Demand: Low prices will lead to high demand
False
True
44
Government is the sole provider of a product or service
Geographic monopoly
Government Monopoly
Natural monopoly
Technological Monopoly
45
Specialization is
When a country focuses on a specific good or services
When my mom tells me I am special
When there is not a lot of something
46
Paying a sales tax on your purchases is an example of
macroeconomics
deflation
implicit cost
explicit cost
47
A market where a small number of business dominate an industry
Monopoly
Oligopoly
Trade Union
48
Which of the following effect the Law of Demand?
Tastes, Taxes, Technology
Technology, Input costs,Tastes, Income, Population
Complementary goods, Tastes, Income, Population, Substitute goods
Technology, Input costs, Number of Sellers, Taxes/subsidies Expectations
49
________ is the idea that people should be able to own property.
Private ownership
Self-reliance
Free trade
Self-interest
50
Import means
To download music
To buy goods that other countries produce
To send away goods
51
Scarcity is
When there is a lot of supply
When a good or resource is very limitied
When I am scared
when you are afraid
52
Which of the following is NOT one of the 8 economic goals?
Economic freedom
Price stability
Balance of trade
Supply and demand
53
Use of factors other than price to promote their goods or services.
Oligopoly
Perfect Competition
Non-price competition
Patent
54
An example of a natural resources is ....
oil
a cashier
a building
an oven
55
A collective of workers assembled to protect their rights and interests is called a _______________.
labor union
partnership
franchise
monopoly
56
An increase in ________________ can have an impact on the demand curve.
input costs
income
elasticity
taxes
57
The basic economic questions are
What to produce?
How to produce?
For whom to produce?
How to pay for the production?
58
A government-funded program that is universally provided to all citizens of the country
custom
terms of trade
market economy
social program
59
Before a manufacture sells a product, they must pay a cost to make the product. This cost is called
monetary costs
non-monetary costs
inflation
input costs
60
A gov. license to a business that excludes others from making, using or selling an invention for a set period of time
patent
collude
franchise
innovation
61
___________ is a neutral third party who makes a final legally binding decision.
Arbitration
Collective bargaining agreement
Partnership
Mediation
62
Market where business has no competition in manufacturing a good or service
Innovation
Monopoly
Oligopoly
Technological Monopoly
63
The economic system which favors heavy government involvement. Has numerous regulations and controls.
mixed economy
capitalism
mercantilism
free trade
