Economics Midterm Review

The major goal of a business firm is to

Which of the following is NOT a determinant of demand (shifter)?

Which of the following is a determinant of both supply AND demand?

How do taxes and quotas affect price?

This is the most basic economic problem

What are the two major economic systems?

What is the Law of Demand?

An inferior good is a good for which

Equilibrium occurs when 

Karl Marx is known for writing what?

The physical & mental talents of individuals are considered

The movement toward a single world economy is known as 

In order to be considered part of supply, a seller must have both the ___ & ____ to produce

Which of the following is not one of the three basic economic questions?

The government can take private property for public use if they offer a fair price because of

When one person's actions affect another person, it is called 

According to the law of diminishing marginal returns

What are fixed costs?

What is the only thing that causes a change in quantity supplied or demanded?

In economic terms, not doing your full share of the work is called

A productions possibilities frontier (PPF) shows

Rationing exists because of

What you give up, the next best alternative or what you forgo is known as

What is the law of supply?

Another word for marginal is

What is a price ceiling?

Goods that are consumed together are called

What is inventory?

According to the Law of Diminishing Marginal Utility

What is scarcity?

A change in demand will cause

Whis is scarcity?

How are profit and losses calculated?

Marginal Cost is

In economic terms, something that encourages or motivates a person to take action is

What is a market

When demand is elastic

A normal good is a good for which

Goods produced by foreign countries that are consumed domestically are called

What two pieces of information are listed in a demand schedule?

Business should produce the quantity at which

Goods that aid in the production of other goods (factories, machinery, etc) are called

The four factors of production (resources) are

If the price of an elastic good increases, what will happen to total revenue?

Price of related goods causes ___________ to shift.

When supply is inelastic, the supply curve will be

Which of the following is NOT one of the three types of business firms?

Variable costs

When there is a surplus in the market, what is likely to happen?

What determines whether a good is normal, inferior or neutral?

Who owns corporations?

Comparing the additional benefits to the additional costs is known as

Goods for which one person's consumption does not take away from another's are

Which of the following is NOT a determinant of supply?

Which of the following is NOT a feature of free enterprise?

Who owns the resources in a free enterprise or market economy?

If the number of buyers decreases, what will happen to the market for any good? 

An increase in demand will shift the demand curve

In the circular flow model, what do households sell to businesses?