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Midterm Review
Midterm Review
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#Economics #Midterm Review #Microeconomics
Flashcards
32 cards
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Questions
32
Answers
1
Generally, in which direction will the demand curve shift if a consumer’s income rises?
Downward.
No change.
To the right.
To the left.
2
Requires a government document that gives permission to operate
Partnership
Sole Proprietorship
Corporation
3
Most common form of business
Corporation
Sole Proprietorship
Partnership
4
Economic
value
where the goal is allocating resources the most productively
Economic Efficiency
Economic Equity
Economic Security
Economic Freedom
5
Which of the following is not a characteristic of Capitalism?
Competition
Profit Motive
Private Property
Equity
6
American Airlines now charges $25 a bag
Monopolistic Competition
Monopoly
Oligopoly
Perfect Competition
7
The Strength of a command system is that it can create change in a relatively short time.
True
False
8
High Gas Prices lead more people driving hybrids
Positive Externality
Negative Externality
9
Stockholders who get the right to vote on corporate matters
Preferred Stock
Common Stock
10
The great majority of stocks in the United States are traded on
the American Stock Exchange
the New York Stock Exchange
the Pacific Stock Exchange.
the over-the-counter market.
11
The government plays all of the following roles in the American economy except:
Consumer of product
Regulator of business
Central planner deciding what is produced
Protector of consumers
12
All of the following are Inferior Goods except:
Used Cars
Off Brands
Gushers
Top Ramen
13
Change in quantity demanded is inversely related to price.
Demand
Supply
Law of Supply
Law of Demand
14
People and firms act in their own best interest to answer the what, how, and for whom questions
Market
Traditional
Command
Mixed
15
There has been major crop damage because of a storms in Hawaii
Demand for Rice shifts right
Demand for Pineapples shifts left
Supply of Pineapples shifts left
Supply of Rice shifts right
16
An economic system where the economic activity stems from ritual, habit, or custom
Mixed
Command
Traditional
Market
17
The capacity to be useful to someone
Trade off
Opportunity Cost
Utility
Equity
18
PG&E institutes rolling blackouts
Oligopoly
Monopoly
Perfect Competition
Monopolistic Competition
19
A modest price increase has little effect on demand for local telephone service, the demand is
Complementary
Inverse
Inelastic
Elastic
20
In a market economy, a high price is a signal for…
Producers to supply more and consumers to buy less
Producers and consumers to buy more
The government to step in and protect consumers.
Producers to offer less and consumers to buy more
21
A recurring theme in economics is people have...
limited resources with their limited wants
limited resources with their unlimited wants.
limited wants with unlimited resources.
unlimited wants with unlimited resources
22
A “bull market” is a term to describe market performance that…
Moves down.
Moves up.
23
Increasing Government Regulations have the same effect on supply as an increase in
Productivity
Costs of the Factors of Production
Technology
Demand
24
Subsidies lower the cost of production, encouraging current producers to remain in the market.
False
True
25
All of the following have inelastic demand except:
Milk
Bread
Giants tickets
Healthcare
26
The tools, equipment, and factories used in production.
Capital
Labor
Entrepreneurship
Land
27
Price Ceilings usually create
Shortage
Surplus
Shift in Demand
Shift in Supply
28
People carry on their economic affairs freely but are subject to some government intervention
Command
Market
Mixed
Traditional
29
The quantity demanded, is greater than the quantity supplied at a given price.
Price Ceiling
Price Floor
Shortage
Surplus
30
Minimum Wage is an example of a law that supports which economic goal?
Full Employment
Economic Equity
Economic Efficiency
Economic Growth
31
Laissez-faire became his fundamental philosophy
Adam Smith
Mrs. Wymore
John Maynard Keynes
Karl Marx
32
The purpose of an economic system is to answer all of the following except:
When to produce
For whom to produce
How to produce
What to produce
