A popular model used to illustrate the concept of opportunity cost is

the production possibilities curve

What is the difference between Socialist and Command economies?

Command controls all production

Entrepreneurs are considered the important force in an economy because they:

take risks and start new businesses

A nation's wealth is best determined by:

accumulation of tangible resources

How might privatization of an economy help?

people will look to benefit personally from good economic choices

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Economics Final Review

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Questions 30

Answers

1
The Sherman Act and the Clayton Act were designed to:
support competition
promote business mergers
limit consumer choice
increase barriers barriers to entry
2
For most products and services, an increase in price results in
higher quantities demanded
reduced demand for substitutes
increase demand for complements
lower quantities demanded
3
What may be a drawback of a free market economy?
income inequality
profit motive
lack of innovation
stock fluctuations
4
The study of economics involves:
studying how things are made, bought, sold
employment and income
all of these are correct
dealing with scarcity
5
An increase in price of milk causes decrease in demand for cereal. The two products are
complements
demand elastic
unrelated
substitutes
6
Under perfect competition, how is price determined?
non price competition
supply and demand
collusion
government policies
7
Rise in the general level of prices:
deflation
pay hike
base rate increase
inflation
8
A popular model used to illustrate the concept of opportunity cost is
the production possibilities curve
entrepreneurship
the paradox of value
the factors of production
9
What's an example of a public good?
an uber ride
the US Navy
carrots
A famous band
10
What do high prices signal buyers to do?
nothing
earn more
buy more
buy less
11
Business structure owned by shareholders
non-profit
partnership
corporation
proprietorship
12
North Korea can be best described as having a
modified free enterprise system
pure free enterprise system
traditional economy
command economy
13
What does elasticity measure?
adjustments to production
response to a change in price
response to a change in technology
flexibility in discounts
14
What is the difference between Socialist and Command economies?
Command allows for inventions and patents
Nothing - they are interchangeable terms
Command controls all production
Socialist has no economic laws
15
Entrepreneurs are considered the important force in an economy because they:
are the greatest number of people in the economy
provide most of the labor
own a great deal of land
take risks and start new businesses
16
Without prices, who has to determine WHAT, HOW and for WHOM to produce?
producers
natural economic forces
consumers
the government
17
Total cost is the sum of
all variable costs
fixed and marginal costs
all fixed costs
fixed and variable costs
18
How do producers respond to a higher price for thier product?
cut worker salaries
produce less
produce more
leave production amounts the same
19
Which stage of production shows the most profit per worker?
beginning of stage II
end of stage III
end of stage I
beginning of stage III
20
A nation's wealth is best determined by:
accumulation of tangible resources
access to medical care
life expectancy
accumulation of intangible resources
21
total amount of a product available:
supply
subsidy
excess
qty. demanded
22
Small change in price creates a big change in demand:
utilitary elastic
inelastic
elastic
fixed cost
23
High priced luxury goods and low priced necessities are reflected by which concept?
subsidies
rational economic theory
scarcity
paradox of value
24
Mergers and acquisitions might result in
smaller companies
inadequate competition
increases in consumer demand
more competition
25
Price ceilings and floors are designed to manipulate what?
benefits to producers
market equilibrium
tax revenues
monopolistic competition
26
The US has "modified" free enterprise because of:
international trade
entrepreneuers
government regulations
the ability to use cryptocurrencies
27
When a customers need for a product is not urgent, demand tends to be
complimentary
elastic
inelastic
unit elastic
28
What is the cost of the next-best alternative called?
benefit cost
expense
opportunity cost
marginal cost
29
The U.S. can best be described as having a
command economy
free market capitalist economy
traditional economy
socialist economy
30
How might privatization of an economy help?
people won't take risks
production will be determined by government officials
people will look to benefit personally from good economic choices
the nations ruling class will look out for other social classes

Economics Final Review Flashcards | StudBud