Econ Final

system of allocating goods and services without prices

a fundamental problem in every society

Paradox of Value refers to the

Which explains why products made under a command economy are more likely to be low quality?

Which two terms are the most similar in meaning?

According to the Law of Supply, which of these would happen to an item as its price rose?

economic action done or brought about by free choice

system in which economic activity is driven by supply, demand, and the price system

the extent to which a change in price causes a change in the quantity demanded

How are economic transactions shaped in a traditional economy?

The study of economics involves

In the economic term oligopoly, the word part oli- probably means

Pure competition and monopoly

To estimate elasticity, compare ___ of a price change to the ___ of the change in total revenue

Which term best describes rent control?

What is the opposite of a surplus?

The four factors of production are land, labor, capital, and

production expenses that do not change when output changes

Which product most likely has a demand that is inelastic?

situation where quantity supplied is greater than quantity demanded at a given price

What effect would a bumper crop most likely have on the price of that crop?

Under perfect competition, what sets the equilibrium price in the market?

Local government increasing property taxes to improve the school system is an example of

What do most economists believe is the most efficient way to allocate resources?

The most comprehensive measure of a nation's wealth is provided by its

Which statement best describes the purpose of the production possibilities curve?

In a competitive market economy, prices are considered

Equilibrium is reached when what occurs?

Which of these statements is descriptive of a market economy?

principle that more will be offered for sale at higher prices than at lower prices

What do price ceilings and price floors prevent?

economic side effects that affect an uninvolved third party

The economic system of the United States is considered a

Which of these statements describes a disadvantage of a traditional economy?

the highest legal price that can be charged for a product

What are the characteristics of demand?

When a nation's total output increases over time, the nation is experiencing

point in time when GDP stops expanding and begins to decline

Which of these can be added to determine total costs?

What would an item's producer be most likely to do if total revenue on that item began to drop?

Which type of economy is most prevalent in the world today?

What do low prices signal buyers to do?

When a factory pollutes a river, the resulting water pollution is an example of a

What does a trough indicate?

How did business cycles change after World War II?

Which would an economist consider a likely substitute for coffee?

products related in such a way that increase in the price of one reduces demand for the other

Which of these economic systems have the least in common?

Which would an economist consider a likely complement for coffee?

Which of these best describes the influence of high prices on the behavior of producers?