Economics Midterm Review

Who owns the resources in a free enterprise or market economy?

When there is a surplus in the market, what is likely to happen?

What determines whether a good is normal, inferior or neutral?

How do taxes and quotas affect price?

What you give up, the next best alternative or what you forgo is known as

Rationing exists because of

Karl Marx is known for writing what?

Which of the following is NOT a determinant of supply?

In order to be considered part of supply, a seller must have both the ___ & ____ to produce

Which of the following is NOT a feature of free enterprise?

What are the two major economic systems?

Equilibrium occurs when 

What is the only thing that causes a change in quantity supplied or demanded?

When supply is inelastic, the supply curve will be

In the circular flow model, what do households sell to businesses?

Goods produced by foreign countries that are consumed domestically are called

When demand is elastic

According to the Law of Diminishing Marginal Utility

In economic terms, not doing your full share of the work is called

The major goal of a business firm is to

Another word for marginal is

Which of the following is NOT a determinant of demand (shifter)?

Which of the following is NOT one of the three types of business firms?

A productions possibilities frontier (PPF) shows

Price of related goods causes ___________ to shift.

What is a market

What is the law of supply?

When one person's actions affect another person, it is called 

What two pieces of information are listed in a demand schedule?

According to the law of diminishing marginal returns

Variable costs

Business should produce the quantity at which

What is inventory?

A normal good is a good for which

Goods for which one person's consumption does not take away from another's are

If the number of buyers decreases, what will happen to the market for any good? 

Marginal Cost is

What is a price ceiling?

If the price of an elastic good increases, what will happen to total revenue?

What are fixed costs?

A change in demand will cause

Who owns corporations?

What is scarcity?

The four factors of production (resources) are

Comparing the additional benefits to the additional costs is known as

The physical & mental talents of individuals are considered

The movement toward a single world economy is known as 

Goods that aid in the production of other goods (factories, machinery, etc) are called

An inferior good is a good for which

In economic terms, something that encourages or motivates a person to take action is

Which of the following is a determinant of both supply AND demand?

Which of the following is not one of the three basic economic questions?

Whis is scarcity?

Goods that are consumed together are called

An increase in demand will shift the demand curve

This is the most basic economic problem

What is the Law of Demand?

The government can take private property for public use if they offer a fair price because of

How are profit and losses calculated?