public goods are market failures because

doesn't distribute resources efficiently

marginal product of labor

change in total output after hiring one more unit of labor

Why are goods and services scarce

resources used to make them are limited

created during the Great Depression

gross domestic product

final value of all goods and services for the year

motivate producers to enter a market

are put on products the gov't doesn't want people to use

Which statement best explains the importance of economic decision making when scarcity is a factor?

each choice has an opportunity cost

if a product is inelastic

quantity demanded/supplied are not very sensative to price change

suppliers reduce the price of their good

add to human capital and labor productivity

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New Econ Final Review

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Questions 40

Answers

1
spending money on either the military or farmers
sticks and twigs
knives and jelly
bats and jam
guns and butter
2
The US mixed economy
based on free market, no gov't involvement
based on centrally planned, no gov't involvement
based on traditional, some gov't involvemtn
based on free market, allowing some gov't involvement
3
horizontal mergers
are prevented due to antitrust laws
occur when companies in the same industry join together
aren't real, I made this question up
2 companies join to become one from completely different industries
4
public goods are market failures because
it sets minimum wage too high
prohibits competition
doesn't distribute resources efficiently
they prohibit the use of minimum wage
5
marginal product of labor
causes diminishing returns for the company
change in total output after hiring one more unit of labor
encourage businesses to invest in technology
causes human capital to decline
6
pick the safety net
general elections every 4 years
strong military defense
unemployment compensation
regulation of commerce
7
Teddi sells a product and pays licensing fees. What type of company does she own?
limited liability partnership
sole proprietorship
corporation
Franchise
8
eliminating gov't control over industry
disclosure
discrimination
deregulation
desisting
9
disadvantage of a corporation (corp.)
ceteris parabis
lack of permanence
founder(s) can lose control
it has little room for growth
10
expenses a new business must pay
entrance costs
initiation costs
basic costs
start-up costs
11
who makes decisions in a command economy
group of central planners
resource rationing
profit incentives
flexible market forces
12
as a business grows what can it benefit from
not having lack of permanence
predatory pricing
economies of scale
less reguation
13
quantity supplied and quantity demanded are equal in
when both are inelastic
equilibrium
when both are elastic
the worst way possible
14
what requires people to make choices
opportunity costs
inflation
how much time they spend on Tik Tok vs. studying
scarcity
15
Why are goods and services scarce
people want too much
some goods cost more than others
people are not very greedy
resources used to make them are limited
16
drink demand is elastic because of the
income effect
amount of competition
learning effect
substitution effect
17
law of supply says
price down, bad for business
price up, consumers boycott
price up, quantity supplied up
price up, supply increases
18
a demand curve
is downward sloping
is a horizontal line
is upward sloping
another curve? I don't care about this one either
19
welfare
helped to reduce factory accidents
began during LBJs "War on Poverty"
created during the Great Depression
was created to reduce the labor force
20
gross domestic product
final value of all goods and services for the year
business cycle
a nasty food challenge you see on Tik Tok
what is shown on a maket demand schedule
21
extra cost of adding one unit
marginal cost
opportunity cost
about 3.50
trade-off
22
in a shortage
consumers see an increase in the income effect
producers lower the price
producers increase the price
consumers can easily find the product
23
higher prices
discourage buyers from finding a substitute
motivate producers to leave the market
motivate producers to enter a market
motivate buyers to buy more
24
excise taxes are
discourages imports
used to prevent tax fraud
are put on products the gov't doesn't want people to use
put on products to help equilibrium
25
what does communism abolish
private property
labor regulations
mass production
paper currency
26
mergers occur when
one company splits into 3 smaller firms
this one is not the answer....but someone will click it anyway
2 companies become 1
a local firm incorporates
27
the supply curve
runds horizontal
upward sloping
downward sloping
who cares?
28
advertising is
non-price competition
monopolistic competition
how companies become monopoly
how a firm decides if their product is elastic or inelastic
29
Which statement best explains the importance of economic decision making when scarcity is a factor?
economic decisions provide access to more resources
each choice must be made with incomplete information
economic decisions are made by the majority
each choice has an opportunity cost
30
if a product is inelastic
quantity demanded/supplied are not very sensative to price change
demand/supply are very much effected by a price change
demand/supply are not sensative to price change
quality demanded is the only thing that changes
31
what measures the ease of changing production due to price changes
fixed cost + variable costs
the goods elasticity
regulations placed in certain industries
production prices
32
lower prices
motivate consumers to buy
motivate firms to enter a market
this is a blank space, and I'll write ya name.
cause the company to go out of business
33
laws against monopolies
antitrust laws
anti-gravity laws
making monoply go illegal....man that game get repetitive
full-trust laws
34
in a surplus
consumers think the price is above equilibrium
suppliers will raise the price for their good
suppliers reduce the price of their good
consumers want to find substitutes for the product
35
Which of the following is an example of a company trying to increase its human capital?
buying lunch for employees
give more fringe benefits
layoff employees
paying for employees education
36
maximum possible output on graph form
PPF
PBS
MLB
ABC
37
which of the following has its own legal identity seperate from the owner
corporation
partnership
chicken sandwhich from McDonalds
sole proprietorship
38
which of the following is considered a standardized product
headphones
sugar free kool-aid
eggs
the batmobile
39
education programs
disprove the learning theory
allow women to enter the workforce more than ever
add to human capital and labor productivity
educate people on the dangers of eating TIDE pods
40
what advantage does a partnership have over a sole proprietorship
specialization of skills
fewer regulations
limited life
easy to open and close

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