Economics Unit 2

Which of these is an example of a variable cost?

Which of these best describes the influence of high prices on the behavior of producers?

The market structure called perfect competition is best described as

What do low prices signal buyers to do?

According to the Law of Supply, which of these would happen to an item as its price rose?

Which of these names the only thing that can cause movement along a demand curve?

Why is a demand curve downward sloping?

At which stage of production does the concept of diminishing returns first become significant?

Which term describes commodities such as police and fire protection?

The Law of Demand states that

Factors that cause a change to supply include

What effect would a bumper crop most likely have on the price of that crop?

Which of these tends to force the price of an item downward?

Which of these is the most likely to create a surplus of an item?

Which would an economist consider a likely complement for coffee?

Which market structure is defined by a single producer?

Which product most likely has a demand that is inelastic?

Which of these is a major problem in the execution of a rationing system?

A change in quantity demanded is represented by

What could cause the change in supply in the graph?

Equilibrium is reached when what occurs?

Which of the following can cause market failure?

Which differentiates a market of pure competition from one of monopolistic competition?

Which of these is an example of a fixed cost?

Which of these is most likely to create a shortage of an item?

Which condition is present in pure competition but missing in monopolistic competition?

When the price of something increases, the quantity demanded

When a factory pollutes a river, the resulting water pollution is an example of a

The Sherman Act, the Clayton Act, and the Federal Trade Commission Act were all designed to

Which of the following factors contribute to market failure?

The US has a "modified" free enterprise economy b/c everything we do & buy is affected by

Which stage of production is distinguished by negative marginal returns?