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UNIT 2 EPI Flashcards | StudBud
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UNIT 2 EPI
UNIT 2 EPI
33 terms
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StudBud Administration
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A review of unit 2.
Flashcards
33 cards
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Practice quiz
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Host live
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Questions
33
Answers
1
What is monopolistic competition?
Many companies selling similar but not identical products
Very few companies selling identical products
1 company selling different products under different names
1 company selling an identical product under different names
2
When a good is not available this good will be purchased:
Off Brand
Knock Off
Inferior Good
Substitute
3
What kind of market runs most efficiently when one large firm supplies all of the output?
Perfect Competition
Monopolistic Competition
Monopoly
Oligopoly
4
When a consumer is able/willing to buy a good or service, they create which of the following?
Elasticity
Demand
Market
Consumption
5
A situation in which households purchase the goods and services that firms produce.
Product Market
Normal Goods
Supply Schedule
Household Market
6
If quantity supplied exceeds the quantity demanded, this is known as:
Excess Supply
Shortage
Excess Demand
Surplus
7
When the demand for product A goes up, the demand for product B will also go up:
Subsidy
Elasticity
Complement (yes, this is how it's spelled)
Excess Demand
8
Sum of money from the gov't to assist an industry to keep the price of a service competitive.
Grant
Loan
Subsidy
Excise Tax
9
Limited quantities of natural resources to meet unlimited needs or desires:
Rarities
Shortage
Sold Out
Scarcity
10
A good that consumers will demand MORE of when their incomes INCREASE
Substitutes
Inferior Goods
Superior Goods
Normal Goods
11
A good that consumers demand less of when their incomes increase is known as:
Substitute
Subsidy
Normal Good
Inferior Good
12
An example of a shortage is...
Labor is not available because the workers have other jobs.
Limited food available due to delivery trucks on strike.
Limited food available because people are buying it.
Limited water for one crop because it's used for other crops
13
Which of the following is NOT characteristic of a centrally planned economy?
Each collective or factory sets its own goals.
The central government owns all land and capital.
The central government makes all economic decisions.
Each person is assigned a job.
14
Which of the following companies is an example of a monopoly?
Pepsi
Ford
Standard Oil Company
Nike
15
A monopoly is when a market is dominated by more than one seller of a product.
False
True
16
All goods and services are scarce because...
Some things are needs and others are wants.
All resources are scarce
Some goods cost more than others.
Some people want to have more goods than others.
17
A situation in which a good or service is unavailable.
Sold Out
Scarcity
Shortage
Substitute
18
What is the rival between various producers for the consumer’s business called?
Socialism
Incentive
Competition
Self Regulation
19
What is it called when a price increase does not have a significant impact on buying habits.
Elastic Supply
Inelastic Supply
Inelastic Demand
Elastic Demand
20
Buyers will purchase exactly as much as sellers are willing to sell is known as:
Price Floor
Equilibrium
Price Ceiling
Disequilibrium
21
Name of the market in which households purchase the goods and services that firms produce:
Market Production
Product Market
Market Supply
House Market
22
This is the market where a few firms are producing most of the output:
Monopoly
Monopolistic Competition
Oligopoly
Perfect Competition
23
Which of the following is NOT a condition for perfect competition?
Buyers and sellers are well informed about products.
Many buyers and sellers participate in the market.
Sellers are able to enter and exit the market freely.
Sellers offer a wide variety of products.
24
The lowest point in an economic contraction is called:
Recession
Trough
Peak
Depression
25
A farmer increasing the number of acres of wheat grown to supply a milling company represents:
Law of Inelastic Supply
Law of Demand
Law of Inelastic Demand
Law of Supply
26
When a good’s price is lower, people will buy more of it. What is the term that describes this?
Product Discount
Law of Supply
Law of Demand
Public Interest
27
What kind of system is the United States economy based on?
Market
Traditional
Central
Cause and Effect
28
The 3 Factors of Production are:
Land, Labor, Capital
Land, Resources, Cost
Cost, Capital, Supply
Labor, Land, Resources
29
Paid effort that people devote to a task is:
None of the Above
Labor
Bribe
Subsidy
30
This is a tax on the production or sale of a good:
Compliment
Excise Tax
Subsidy
Income Tax
31
When the selling price of a good goes up, what is the relationship to the quantity supplied?
No relationship between the two
It becomes practical to produce more goods.
The profit decreases
The cost of production goes down.
32
The 3 Factors of Production are Land, Labor, and Capital.
True
False
33
The most desirable alternative given up for the decision is known as:
Opportunity Cost
Compromise
Deal Breaker
Subsidy
