stud
bud
Sign up
Log in
Home
Library
Explore
SAT
More
Microeconomics Flashcards | StudBud
Explore
/
Microeconomics
Microeconomics
34 terms
·
StudBud Administration
·
69 plays
Imported from external platform
Flashcards
34 cards
F
Practice quiz
P
Host live
L
Questions
34
Answers
1
Assuming that the graph follows the normal laws of economics, the line represents
equilibrium price
supply
production possibilities
demand
2
Why is there no competition in a monopoly?
The government forbids competition.
There are no close substitutes.
Prices are set by the government.
There are too many substitutes.
3
Money that individuals receive from businesses return to businesses in
the payment for resources.
the purchase of land.
the product markets.
the factor markets.
4
Which factor might cause an increase in the suppply of a product?
the introduction of new technology
fewer sellers in the marketplace
an increase in the cost of raw materials
a decrease in productivity
5
What conclusion can be made about the U.S. economy by examining this chart?
Consumer spending has little-to-no economic impact.
All aspects of the economy are related.
People need to buy more things to help the economy.
The government plays the most important economic role.
6
How do individuals contribute to the circular flow of economic activity?
Businesses buy goods and services from individuals.
Individuals buy productive resources & provide labor for product market
Individuals provide labor for factor markets&buy goods in product markets.
Businesses purchase productive resources in product markets.
7
A price set below the current market price is a characteristic of a
price floor.
regular price.
price ceiling.
equilibrium price.
8
The Statement "the quantity demanded of a product varies inversely with its price" is a definition of
the law of competition
Laissez-faire
the law of demand
the invisible hand
9
What is the relationship between quantity supplied and price?
They are related through demand.
They are not related.
They are directly related.
They are inversely related.
10
Did you do your study Guide so you are ready for your test?
Will be doing it tonight
Yes. I did most of it
ofcourse because I choose to use my time wisely
No. I dont want a good grade
11
What is the name of the point at which supply and demand intersect?
equilibrium
plateau
profit margin
scarcity
12
What is Mrs. Dillon's Daughters Name?
Jennifer
Stephanie
Rebecca
Priscilla
13
In a business organization, the splitting of management and ownership into two distinct functions is an example of a(n)
entrepreneur.
corporation.
partnership.
arbitage.
14
While demand is based on consumer purchases, supply is MOST LIKELY based on
the willingness to consumers to purchase a product
producers offering a wide range of prices
the willingness of producers to supply a product
consumer confidence in a complementary product
15
Which BEST explains the relationship shown on the graph?
A product costs more when many people want to purchase it.
Fewer people will buy a product when its price increases.
A product becomes scarcer as it price decreases.
The price of a product has no effect on consumer demand.
16
To have demand, what must you have
a basic need and a constant supply of the item
the ability to pay for the item.
the desire and the ability to pay for the item.
a desire for the item.
17
One reason that government regulation of natural monopolies is essential is
to prevent the monopoly from raising prices uncontrollably.
to create more opportunities for corporate investment.
to ensure that competition continues to flourish.
to allow more customer input into methods of production.
18
In the graph, what happened to the equilbrium price when the supply curve moved from S1 to S2?
It did not change
The equilibrium price went down
The equilibrium price went up
It indicated a decrease in demand
19
In which type of business organization do the owners have least input and decision-making on the day to day operations?
Sole Proprietorship
Corporation
Monopoly
Partnership
20
Jorge & Fred have a product to sell. They decide to share the risks & profits by forming a
sole proprietorship.
partnership.
entrepreneurship.
corporation.
21
An unincorporated business owned by a single person, which may or may not have employees, is an example of a(n)
corporation.
entrepreneurship.
sole proprietorship.
partnership.
22
The diagram shows the circular flow of goods & resources. What is the primary purpose of this chart?
It shows the need for government intervention in any economic system
It shows the relationship between supply & demand
It indicates the changing tastes in the product market
It shows how households & businesses interact in a market economy
23
In the graph, the equilibrium price is approximately
$1.00
$5.00
$3.00
$6.00
24
The demand for Twinkiedoodles in the months of June&Dec. The demand curve has moved to the right on the graph.This shows
the price for Twinkie-Doodles went down
buyers & sellers cannot agree on a price
the demand for Twinkie-Doodles has increased
the supply of Twinkie-Doodles has decreased
25
The Law of Supply states that
when the supply of a product decreases, the price of the product falls
the supply of a product is not affected by its price
when the supply of a product increases, the price of the product rises
quantity supplied of product will increase when price of product increases
26
Supply is the total amount of a ______________ that is available to consumers.
product or warranty
service or industry
good or service
good or device
27
The graph shows a demand curve. What can be said about the demand line moving to the right?
This indicates a reduced supply
Demand has increased
An equilbrium price has been determined
Demand has decreased
28
According to this diagram showing the circular flow of goods & resources where do individuals spend the income they earn
in individuals households
in the factor market
in the capital market
in the product market
29
Supply is the total amount of a good or service that is available to ______.
redistribute
distribute
consumers
purchase
30
Which of these is the best economic definition of "pure competition"?
the market is dominated by one seller
the market is not dominated by either buyers or sellers
the market is dominated by two or more sellers
the market is dominated by a few buyers
31
Which type of business organization has the advantage of specialization, but the disadvantage of unlimited liability?
corporation
partnership
S-Corporation
oligopoly
32
Mr. Simpson is liable for all the debts of his company. Mr. Simpson has which type of business organization?
monopoly
conglomerate
sole proprietorship
corporation
33
Which market(s) has no competition
monopolistic competition
perfect competition
monopoly
oligopoly
34
A decrease in the price of a particular product will result in
an increase in the quantity supplied of that product
a shift in the production possibilities frontier
a decrease in the demand for that product
an increase in the quantity demanded of that product
