Econ Final

How did business cycles change after World War II?

system of allocating goods and services without prices

situation where quantity supplied is greater than quantity demanded at a given price

The four factors of production are land, labor, capital, and

Which of these economic systems have the least in common?

Which product most likely has a demand that is inelastic?

products related in such a way that increase in the price of one reduces demand for the other

Which two terms are the most similar in meaning?

system in which economic activity is driven by supply, demand, and the price system

Which of these can be added to determine total costs?

Which type of economy is most prevalent in the world today?

Which would an economist consider a likely substitute for coffee?

a fundamental problem in every society

What do most economists believe is the most efficient way to allocate resources?

How are economic transactions shaped in a traditional economy?

the highest legal price that can be charged for a product

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

In a competitive market economy, prices are considered

Local government increasing property taxes to improve the school system is an example of

Which term best describes rent control?

What does a trough indicate?

What would an item's producer be most likely to do if total revenue on that item began to drop?

What is the opposite of a surplus?

Equilibrium is reached when what occurs?

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

The economic system of the United States is considered a

Which explains why products made under a command economy are more likely to be low quality?

the extent to which a change in price causes a change in the quantity demanded

What are the characteristics of demand?

principle that more will be offered for sale at higher prices than at lower prices

Which of these statements describes a disadvantage of a traditional economy?

To estimate elasticity, compare ___ of a price change to the ___ of the change in total revenue

When a nation's total output increases over time, the nation is experiencing

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

What do low prices signal buyers to do?

Which would an economist consider a likely complement for coffee?

Paradox of Value refers to the

production expenses that do not change when output changes

The most comprehensive measure of a nation's wealth is provided by its

Pure competition and monopoly

Which statement best describes the purpose of the production possibilities curve?

In the economic term oligopoly, the word part oli- probably means

Under perfect competition, what sets the equilibrium price in the market?

Which of these statements is descriptive of a market economy?

What do price ceilings and price floors prevent?

point in time when GDP stops expanding and begins to decline

economic side effects that affect an uninvolved third party

economic action done or brought about by free choice

The study of economics involves

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