Econ Midterm (Ch. 1-8)

Supply is defined as

What kind of slope does the supply curve have?

Which is NOT a need?

Street lighting and roads are an example of

A situation in which the average cost of production falls as the producer grows larger is called

Angela owns a store that sells a national brand of coffee. She pays licensing fees to do this. What kind of business?

Government deciding the distribution of all resources is a feature of a

A patent

What is a business owned and managed by a single person called?

A market structure in which only one seller sells a product for which there are no close substitutes is called a

In a resource market, households are _____________

Which market structure features many buyers and sellers but there are some differences between products?

What is the relationship between price and quantity demanded?

The way a society uses scarce resources to satisfy its people’s unlimited wants is called an economic

The United States decides what goods to produce by letting

If there is an increase in the price of wood (a resource to produce skateboards) what would happen to the graph?

Fast food chains and retail stores are a common example of

Suppliers in a product market are

If skateboards are a normal good and income rises, what would happen to the graph?

Equilibrium price is the price at which the quantity demanded by consumers and the quantity supplied by producers

What is the definition of demand?

A macroeconomist would study

A circular flow model shows how

What is the best example of a negative externality?

According to the law of supply, when price increases,

What is one of the major disadvantages of corporations?

An example of physical capital is

How do supply and demand compare when there is a shortage?

What type of economy does the US have?

An advantage of a pure market/ capitalist economy is that it

An actress sets off a craze for wearing camouflage. What factor is affecting demand?

What is a disadvantage of partnership but NOT of sole proprietorship?

What is a want?

What term describes using resources to produce the maximum amount of goods and services?

A person who makes goods or provides services is called a

What type of business sells ownership in the company through the purchasing of shares?

What is the term for a business that is co-owned by two or more people?

What is the name for an individual who owns a share of a corporation and is entitled to part of its profits?

Which of the following would result in a decrease in demand?

Which of the following corresponds to equilibrium price?

What would microeconomists study?

The satisfaction received from using one more unit of a good or service is called

With voluntary exchange, a buyer and seller agree to do business together

Most people start a business inspired by the

In a market/ capitalist economy, the real power in the marketplace is held by the

Which of the following represents production that is impossible to attain?

A maximum price of $20 set by the government would be a

Who buys goods for personal use?

What is an advantage of partnership but NOT of sole proprietorship?

Reducing or eliminating government control of business is called

Which of the following shows underutilization?

Elements of traditional, command, and market economies are combined in a

On a supply and demand graph, the point of market equilibrium always happens

What are examples of substitute goods?

Which of the following is NOT considered a factor of production as defined by economists?

What does the term limited life mean?

What is an example of a non-renewable land resource?

The U.S. government often makes transfer payments to

In economic terms, laissez faire means that the government

Something that hinders a business from entering a market is called a

Which of the following is most likely to be a sole proprietorship?

The government owns some, but not all, factors of production in a(n)

What is the opportunity cost of moving from point 3 to point 5 on the PPF?

A price of $80 would create a

A major difference between monopolistic competition and an oligopoly is