What is a laissez-faire?

philosophy that government should not interfere with business activity

What do producers hope happens when they create new technology

the supply curve to shift to the right

What is total revenue?

the average price of a unit sold times the quantity sold

What does unit elastic mean?

a changing price that causes a proportional change in total revenue

Venture capitalists' main goal is usually to

get a good return on their investment

What happens at equilibrium price

the prices of the number supplied and demanded are the same

What best describes how high prices influence the behavior of producers?

they are incentives for producers to buy less

a market structure characterized by a single producer in a market

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Economics Unit 2 Test Review

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Questions 15

Answers

1
What is a laissez-faire?
philosophy that government should not interfere with business activity
condition that lacks any of the requirements for a competitive market
philosophy that government should interfere with business activity
a repeal of subsidies for production of that item
2
What do producers hope happens when they create new technology
the supply curve to stay the same
the supply curve to shift to the right
the supply curve to shift to the left
3
What is total revenue?
the mean price of a unit of output
the average price of a unit sold times the quantity sold
level of production needed for a firm to recover its cost
additional expense of producing one additional unit
4
The level of production that creates enough revenue to covet its total operating coast is the
marginal production
break-even point
overhead
profit-maximizing quantity of output
5
What does unit elastic mean?
a changing price that causes a proportional change in total revenue
prices paid for one/more products or services times the amount of eacc
when the formula creates an absolute value greater than 1
total expenditures
6
Venture capitalists' main goal is usually to
teach entreprenuers managerial skills
get a good return on their investment
help individuals achieve their dreams
help their communities
7
What happens at equilibrium price
the number of sellers is the same as the number of producers
the prices of the number supplied and demanded are the same
the prices are all the same
prices stop increasing
8
Prices help buyers and sellers make...
sales
decisions
products
products
9
What best describes how high prices influence the behavior of producers?
they don't have any effect on the behaviors of producers
they encourage producers to modify their demand schedule
they encourage producers to produce more
they are incentives for producers to buy less
10
On a supply and demand curve, the demand curve tends to
shift right
shift left
slope up
slope down
11
What is a monopoly?
a market structure characterized by a single producer in a market
a market structure characterized by multiple producers in a market
a philosophy that government should not interfere with business activity
A family friendly board game good for all ages 5 and up
12
When two companies who produce the same type of product become one its called...
vertical merger
horizontal merger
none of the above
conglomeration
13
If there are externalities what does that mean?
there's a market failure
there's a lack of information
there are public goods
there's resource immobility
14
What can cause a change in the supply curve?
technology
government subsidies
all of the above
number of sellers
15
What causes movement along a demand curve
substitution
change in price
change in supply
consumer taste

Economics Unit 2 Test Review Flashcards | StudBud