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HEcon Final Review Flashcards | StudBud
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HEcon Final Review
HEcon Final Review
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Questions
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Answers
1
A farmer cultivates a vast tract of fertile land to grow crops for the market. Which FOP is seen in this scenario?
Entrepreneurship
Capital
Land
Labor
2
Which business model involves purchasing the rights to use an established company's name and business model?
Partnership
Corporation
Sole Proprietorship
Franchise
3
Which of the following goods is most likely to have an inelastic demand?
Prescription heart medication
sticky notes
Gym shoes
Eggs
4
A software company hires skilled programmers to develop a new application. Which FOP is seen in this scenario?
Land
Entrepreneurship
Capital
Labor
5
Which of the following scenarios best demonstrates a product with highly elastic demand?
Luxury sports cars
Insulin
Gas
Cigarettes for a smoker
6
What type of economic system does the government have the control over resources, production, & distribution?
Mixed Economy
Market Economy
Traditional Economy
Command Economy
7
A bakery owner invests in state-of-the-art cookie decorating machinery. Which FOP is seen in this scenario?
Capital
Entrepreneurship
Labor
Land
8
What best defines a market equilibrium?
High demand and high supply meeting at a common price.
The point where supply and demand intersect, establishing a stable price.
Low demand and scarcity leading to increased prices.
Excessive supply causing prices to rise rapidly.
9
Which business model involves a one individual owning and operating the business, assuming all profits and liabilities?
franchise
corporation
sole proprietorship
partnership
10
A global shortage of rare metals used in iphones increases the cost of these materials. What happens to iphone price?
Decrease
Increase
11
Wendy's, Burger King, and McDonalds rely on advertising to differentiate and attract business
False
True
12
What would you call point F?
efficient
Unemployment
attainable
unattainable
13
The formula to determine total revenue
Q2-Q1
Fixed Costs + Variable Costs
Price x Quantity
MC = MR
14
The Chicago Cubs want to build a new addition to Wrigley Field by adding a tax to tickets. What principle is this?
benefits-recieved
equity
regressive
Ability-to-pay
15
A market economy has no government involvement. All economic decisions are left up to private individuals.
False
True
16
Every economic system faces the decision of how to:
c) Establish an equitable sharing of income
d) Fulfill the diverse needs and desires of society
b) Distribute limited resources efficiently
Utilize its entire workforce effectively
17
What is the opportunity cost of moving from point D to point C?
50
200
100
150
18
What's the main purpose of a union?
to negotiate agreements with employers for their members
Regressive tax
To approve laws
To engage in illegal collective bargaining
19
Labor costs are a fixed cost
True
False
20
Mr. Acena has 30 seats at econ tutoring, he charges $20 a session. What's his total revenue if all the seats are full?
$200
$20
$60
$600
21
What type of economic system does the government have the control over resources, production, & distribution?
Command Economy
Traditional Economy
Market Economy
Mixed Economy
22
Which scenario is most likely to result in a shortage in the market?
A decrease in consumer interest for a popular video game
Farmers planting extra crops due to favorable weather conditions
Sudden disruptions in oil supply leading to increased gasoline prices
Manufacturers increasing production of phones due to lower production costs
23
a small number of large firms dominate the industry. These firms are not allowed to operate as a cartel in the U.S.
Perfect Competition
Monopolistic Competition
Monopoly
Oligopoly
24
Study for finals or go to a party w/ friends? You choose to go to the party. What's the opportunity cost of the party?
None
Studying for the upcoming important final
Balancing both studying and attending the social event
Attending the social event with friends
25
What is the primary purpose of a price ceiling in a market?
To set a maximum price for a product or service.
To encourage producers to increase supply.
To eliminate price fluctuations in the market.
To allow for unrestricted price increases based on demand.
26
Which of the following scenarios is most likely to result in a surplus in the market?
Farmers producing more corn than consumers are willing to buy
Manufacturers reducing the price of smartphones due to more competition
A sudden rise in demand for umbrellas during a rainy season
A limited supply of concert tickets for a highly anticipated music event
27
Illinois has a 4.95% income tax that applies to everyone. What kind of tax is this?
None
Regressive
Propotional
Progressive
28
In a market system, a Corey goes to Marianos for a box of cereal for $5.36. In this scenario who benefits?
Both Corey and Marianos
Marianos
Corey
Neither
