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Econ EOY Proj. Flashcards | StudBud
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Econ EOY Proj.
Econ EOY Proj.
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Answers
1
In a perfectly competitive market, long-term profits tend to be zero.
True
False
2
Price discrimination requires the ability to prevent resale of goods.
True
False
3
Which of the following is an example of price discrimination?
Offering the same price to all
Student discounts on movie tickets
Selling goods at a cost
Random discounts to everyone
4
A monopoly always benefits consumers by lowering prices.
False
True
5
What is a barrier to entry?
A government tax
An obstacle that makes it hard to enter a market
A way to increase competition
A type of advertisement
6
What is marginal cost?
Extra cost of making one more unit
Money lost from selling
The cost of making all products
The cost divided by total units
7
What is the basic economic problem?
Recession
Unemployment
Inflation
Scarcity
8
What is economics primarily concerned with?
How people allocate resources in an economy
Society and countries
Weather patterns
How people make choices with limited resources
9
What best describes perfect competition?
Government sets all prices
One seller controls the market
Many sellers offer identical products
Products being heavily advertised by multiple companies competetively
10
What is the term for using fewer resources than possible?
Underutilization
Efficiency
Scarcity
Productivity
11
Which is a characteristic of monopolistic competition?
Identical products
Slightly differentiated products
No entry to the market
Only one firm
12
What is marginal revenue?
The cost of all units sold
Price of one product
Extra money earned from selling one more unit
Total money a business earns after selling one more unit
13
Which market structure has the highest barriers to entry?
Monopolistic competition
Oligopoly
Monopoly
Perfect competition
14
Which of these is not common in monopolistic competition?
Many sellers
Some control of price
Product differentiation
High barriers to entry
15
Why are monopolies often regulated by governments?
To promote monopolies in every industry
To prevent price gouging and ensure fair access
To encourage collusion
To increase profits
16
Scarcity forces individuals and societies to make choices.
True
False
17
Which of the following is an example of a natural monopoly?
Fast food chains
Cell phone manufacturers
Electricity providers
Shoe companies
18
What is market equilibrium?
When demand equals supply at a certain price
When supply exceeds demand
When producers lower prices to attract buyers
Where total demand is zero
19
What does GDP refer to?
Government Development Plan
Global Development Process
General Demand Policy
Gross Domestic Product
20
What country operates as a command economy?
The United States of America
Djibouti
Jamaica
North Korea
21
What does a Product Possibility Curve (PPC) show?
How to increase demand
Different combinations of two goods an economy can produce
The amount of money in the economy
The best way to fix prices
22
Which type of market structure (In theory) is most efficient?
Monopoly
Perfect competition
Oligopoly
Monopolistic competition
23
What is collusion?
A merger between two companies
Legal competition among firms
Government regulation
A secret agreement between firms to fix prices
24
What does a demand schedule show?
Government spending levels
Consumer income over time
The quantity demanded at different prices
How prices affect supply
25
Which type of economy relies most on customs and traditions?
Command economy
Traditional economy
Market economy
Mixed economy
26
High start up costs act as a barrier to entry in a market making it difficult for new firms to enter.
False
True
27
What is price discrimination?
Offering holiday discounts
A type of market failure
Charging all customers the same price based on customer traits
Charging different prices for the same product based on customer traits.
28
What do antitrust laws aim to do?
Encourage market collusion
Protect monopolies
Set prices for goods
Promote fair competition and prevent monopolies
29
What defines pure competition?
a large number of firms who essentially produce the same prduct
a market with government imposed price conrols and limited ocmpetition
products that are unique and heavily branded
a market with few large firms that control prices for collusion
30
Incentives only affect consumer behavior, not producers.
True
False
31
What is a monopoly?
A market where many firms compete
A market where prices are fixed
A type of government
A firm with no competition
32
Which of the following is an example of non-price competition?
Lowering product quality
Advertising better customer service
Cutting wages
Offering a sale
33
What does opportunity cost refer to?
The cost of a failed business
The total cost of an item
The value of the next best alternative foregone
The price of a product
34
What is commodity?
a product that is considered the same regardless who makes or sells it
is produced by a single firm controlling the entire supply
has no close substitutes, giving sellers significant market power
when firms collude to maintain stable prices despite their differences
35
Which of the following best describes an oligopoly?
Thousands of small sellers dominate the market
One seller
Two or three sellers dominate the market
Products are identical
36
All societies face the problem of scarcity, regardless of wealth.
True
False
37
A mixed economy combines elements of which two systems?
Traditional and monarchy
Market and monarchy
Command and market
Traditional and command
38
What is a need?
Actions or activities that one performs
Something that
Something essential for survival
Something that is desired
39
Give an example of physical capital
The skills of workers
Tools and Machines
Chipotle
Money in the bank
40
In perfect competition, what determines price?
The government
The seller
Supply and demand itself
The buyer
41
Give an example of human capital
Natural recources
Money used by companies
Machines
knowledge and skills
42
What is a price war?
A struggle to find an agreement between firms to fix prices at a high level
A government policy to control inflation
When firms keep lowering prices to win market share.
A legal battle over pricing rights between companies
43
What is non-price competition?
Setting one price for all products
Reducing prices to compete
Competing only in perfect markets
Competing through factors other than price
44
Which of the following is not a factor of production
Capital
Land
Money
Labor
45
Define trade-off
Getting everything you ever wanted in your entire life
Trading goods with other countries
Saving money in the bank
act of giving up one benefit in order to get another greater benefit
