Fundamentals of Econ Test Review

Which of these statements is descriptive of a market economy

If, at the current price, there is a shortage of a good,

Which of these is the best description of a normal demand curve?

Equilibrium is reached when what occurs?

A surplus occurs when

Consider the term marginal utility. Which word is the best synonym for marginal?

Price ceilings create

You like banana pie with vanilla pudding. The price of bananas goes up, what happens do demand for vanilla pudding?

Which of the following market types has a large number of firms sell but different products?

The economic system of the U.S. is considered a _______

How is TINSTAAFL illustrated in a socialist economy?

If the price of a substitute to good X increases, then

Which of these describes a disadvantage of a traditional economy?

Sue has a business idea, but doesn't have the money to start it. She asks a friend to help out financially, this is a __

Which term refers to a changing price that causes proportional change in quantity demanded?

A shortage occurs when

Which barrier to entry is an exclusive right granted to an author or composer of an artistic work?

A state government builds a highway. This is an example of government fulfilling its role as what?

A key advantage of a sole proprietorship is that

If a determinant (a shifter) creates demand to go up or down, that is called a ______

Which of these is an accurate statement about mixed economies today?

When there is a shortage in the market

Supose there is an increase in resource prices. We would expect

There is always some form of government involvement in a mixed economy

A ___ is a government document that gives permission to create a corporation

What do price controls (price ceilings and floors) prevent?

Wheat is the main input in the production of flour. If the price of wheat goes up, we would expect

Which of the following could raise the cost of production in a command economy?

A monopoly is a market with

How are economic transactions shaped in a traditional economy?

Sole proprietors have _____ for the debts of their companies

What will happen in the rice market if buyers are expecting higher prices in the future?

Which of the following hsa only a few competing firms?

What is the difference between perfect competition and monopolistic competition?

A ___ is a form of business ownership that is considered to be seperate from its owners, who are known as stockholders

When the price is higher than the equilibrium price

What kind of economy offers uniformity in wages regardless of individual productivity?

What is the best description of a normal supply curve?

Price floors create

In a ___, two or more companies agree to a combination of equals, creating one company from two independent companies

The market structure called perfect competition is best described as ____

Which of these economic systems have the least in common?

Which of these is a major advantage of a market economy?

Socialist economies include aspects of both command and market economies

If a change in price creates a change in demand, that is considered a ______

Markets in the free-enterprise system are seldom regulated by

Holding all else constant, a higher price for ski tickets would be expected to

In a ___, all partners have the right to actively participate in the day to day of the business

_____ happens when price rises. This usually affects both firms and consumers.

Which of the following would not be a determinant of demand?

Firms using marketing to

Which of the following market types has the fewest number of firms?

Which statement describes a disadvantage of a command economy?

Perfect competition is characterized by all of the following EXCEPT

A barrier to entry is