1 Economics Midterm Review

What most helps promote competition?

Private citizens own most if not all the means of production in which economy?

Tools and machinery used in production are called:

Which economic model is used to analyze a decision's potential outcome?

Products that are used together are called what?

In the short run, a firm can easily change its output level, so supply is elastic

There are very few, if any, good substitutes for motor oil. Therefore,

GDP measures the quality and quantity of products.

Innovative people who create or improve products are called:

What are the four factors of production?

What social and political belief states that wealth should be distributed through a democratic society?

What is the idea trat self-interest of the participants in an economy promotes general economic self-interest?

Not consuming today in order to have the ability to consume tomorrow is an example of:

Which is not a basic question of economics?

What principle states quantity demanded and price move in opposite directions

Which of the following is not a consequence of American style free enterprise?

Increase in the demand for oreos because the price of milk decreased affects which factor?

Where does the government mostly receive its revenue?

Arguing that government should not interfere in the marketplace is an example of:

Financial responsibility for ALL debts related to a business is an example of:

What term describes a situation where a market does not have enough resources?

Equilibrium is a useful tool because, for most products, it is rarely a moving target.

Which of the following cost types stays the same every month?

Deregulation often occurs when government regulation is seen to reduce competition.

Rent control is a form of ___________.

Supply = Demand

What is money needed to start or expand a business?

Owners of a corporation are called:

To calculate profit, expenses should be subtracted from the business’s income received

What graph shows the amount of products supplied at all possible market prices?

What factor includes the human physical or mental effort in production?

Businesses use demographic data to classify potential customers

Which good is inelastic?

What indicates that the price of a good is too high?

Which of the following is NOT a disadvantage of a traditional economy?