What is the difference between a monopoly and an oligopoly?

one is owned by one, the other is owned by a few

What is the connection between Competition and Self-interest?

producers have to make things the consumers want

What is a Free Market?

people are free to buy and sell whatever they want.

What is differentiation?

a good is produced slightly differently from another good

What is the purpose of a patent?

allows you to legally be the sole supplier of an invention

What is the substitution effect?

when you buy cheaper or different goods

What does the term Laissez-faire mean?

government should not intervene in the marketplace.

What is the law of supply?

tendency of suppliers to offer more goods at higher prices

If the demand curve shifts left what does that mean?

there is less demand at every level

What is a traditional market?

market where the same goods have been sold for generations

What is the invisible hand?

the idea that the economy fixes itself when it fails

What is the law of Demand?

consumers buy more of a good when its price decreases

Which is not a reason competition is good in the market place?

Stops entrepreneurs from entering the market

What is perfect competition?

many sellers sell identical products

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Supply and Demand

23 termsStudBud Administration35 plays

Free Market, Supply, Demand, Equilibrium Pricing

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Questions 23

Answers

1
How do you restore equilibrium?
buy a substitute
produce less
produce more
change the price
2
What is the difference between a monopoly and an oligopoly?
one is a board game, the other is real life
one is owned by the government, the other is privately owned
they are the same thing
one is owned by one, the other is owned by a few
3
What is the connection between Competition and Self-interest?
producers have to make things the consumers want
companies compete for their own self-interest
without competition there is no self-interest
people only worry about self interest when buying goods
4
What is a Free Market?
people are free to buy and sell whatever they want.
everything is free, people simply barter for goods
people sell what the government tells them to sell
market where the same goods have been sold for generations
5
Which is not an example of non-price competition?
location
style
price
service
6
How is a demand curve characterized?
slopes down from left to right
slopes up from left to right
7
What is differentiation?
a company makes two of something but slightly different
when you change the location to better suit the consumer
a good is produced slightly differently from another good
when a company makes one product then changes its focus
8
What is the purpose of a patent?
allows you to illegally start a monopoly
allows you to legally be the sole supplier of an invention
allows you to become an engineer
protects your thoughts from the government
9
What two factors effect equilibrium?
surplus and shortage
consumer choice and price
price and scarcity
surplus and supply
10
What is the substitution effect?
when you pick something over another thing
when you change one thing for another
when you buy cheaper or different goods
when you do magic and make something dissapear
11
How is a supply curve characterized?
slopes up from left to right
slopes down from left to right
12
Who created the model for a free market?
Ben Franklin
Tyler Perry
Donald Trump
Adam Smith
13
What does the term Laissez-faire mean?
everyone should be equal
government should not intervene in the marketplace.
government should tell the marketplace what to sell
it's french for cheese is the best
14
Which is not a factor that shifts a demand curve?
consumer trade
advertising
price
population
15
What is the law of supply?
tendency of consumers to offer more good at lower prices
tendency of suppliers to offer more good at lower prices
tendency of consumers to offer more goods at a higher prices
tendency of suppliers to offer more goods at higher prices
16
If the demand curve shifts left what does that mean?
there is more demand at every level
there is less supply at every level
there is more supply at every level
there is less demand at every level
17
What's another term for a monopoly?
board game
dictatorship
trust
oligopoly
18
What is a traditional market?
people sell what the government tells them to sell
market where the same goods have been sold for generations
everything is free, people simply barter for goods
people are free to buy and sell whatever they want.
19
What is the invisible hand?
Gods right to curb the economy
the idea that the economy fixes itself when it fails
The private sector will fund failing businesses
the government secretly fixes problems in the economy
20
What is the law of Demand?
consumers buy more of a good when its price decreases
consumers buy less of a good when its prices decrease
producers buy more of a good when its price decreases
producers buy less of a good when its price decreases
21
Which is not a reason competition is good in the market place?
prevents inferior quality
Stops entrepreneurs from entering the market
prevents higher prices
prevents lack of quality of products
22
What is an example of a natural monopoly?
airlines
water distribution
the stockmarket
the railroads
23
What is perfect competition?
many sellers sell identical products
a few sellers sell identical products
the government tells producers what to sell
only one seller sells a single product

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