Econ Midterm (Ch. 1-8)

A situation in which the average cost of production falls as the producer grows larger is called

Which is NOT a need?

What would microeconomists study?

In a resource market, households are _____________

In economic terms, laissez faire means that the government

The U.S. government often makes transfer payments to

An advantage of a pure market/ capitalist economy is that it

A macroeconomist would study

Which of the following shows underutilization?

What is an advantage of partnership but NOT of sole proprietorship?

Who buys goods for personal use?

If there is an increase in the price of wood (a resource to produce skateboards) what would happen to the graph?

A circular flow model shows how

How do supply and demand compare when there is a shortage?

A market structure in which only one seller sells a product for which there are no close substitutes is called a

What is the opportunity cost of moving from point 3 to point 5 on the PPF?

What type of economy does the US have?

What is a disadvantage of partnership but NOT of sole proprietorship?

Which of the following is most likely to be a sole proprietorship?

What is a want?

What is one of the major disadvantages of corporations?

What are examples of substitute goods?

What is the relationship between price and quantity demanded?

Most people start a business inspired by the

An example of physical capital is

An actress sets off a craze for wearing camouflage. What factor is affecting demand?

A person who makes goods or provides services is called a

Street lighting and roads are an example of

According to the law of supply, when price increases,

What is the name for an individual who owns a share of a corporation and is entitled to part of its profits?

Reducing or eliminating government control of business is called

What is the definition of demand?

A maximum price of $20 set by the government would be a

A major difference between monopolistic competition and an oligopoly is

Elements of traditional, command, and market economies are combined in a

Which of the following would result in a decrease in demand?

The United States decides what goods to produce by letting

What is the term for a business that is co-owned by two or more people?

Angela owns a store that sells a national brand of coffee. She pays licensing fees to do this. What kind of business?

If skateboards are a normal good and income rises, what would happen to the graph?

The government owns some, but not all, factors of production in a(n)

Which of the following represents production that is impossible to attain?

With voluntary exchange, a buyer and seller agree to do business together

A patent

Equilibrium price is the price at which the quantity demanded by consumers and the quantity supplied by producers

In a market/ capitalist economy, the real power in the marketplace is held by the

On a supply and demand graph, the point of market equilibrium always happens

What is the best example of a negative externality?

Fast food chains and retail stores are a common example of

What is an example of a non-renewable land resource?

Suppliers in a product market are

Supply is defined as

What kind of slope does the supply curve have?

Which market structure features many buyers and sellers but there are some differences between products?

Which of the following is NOT considered a factor of production as defined by economists?

Something that hinders a business from entering a market is called a

What is a business owned and managed by a single person called?

What type of business sells ownership in the company through the purchasing of shares?

Which of the following corresponds to equilibrium price?

What term describes using resources to produce the maximum amount of goods and services?

The way a society uses scarce resources to satisfy its people’s unlimited wants is called an economic

A price of $80 would create a

What does the term limited life mean?

Government deciding the distribution of all resources is a feature of a

The satisfaction received from using one more unit of a good or service is called