Econ Mid-term Review

Question 1

Monopolistic Competition: -Many firms, few barriers to entry, similar but differing products, little price control

Accepted Answer

True

Question 2

A sudden spike in the price of Wendy's food leads families to cook from home. This is...

Accepted Answer

The Substitution Effect

Question 3

The cost of microchips used to make cellphones has suddenly increased, this will cause

Accepted Answer

Supply shift left

Question 4

A sudden shortage of goods in the supply chain

Accepted Answer

Supply shock

Question 5

What type of exchange is described as buyers and sellers freely and willingly engage in market transactions?

Accepted Answer

Voluntary Exchange

Question 6

Oligopoly: 4 or less firms, price fixing, high barriers to entry, standardized products

Accepted Answer

True

Question 7

A farmer's market is a great example of

Accepted Answer

Perfect Competition

Question 8

The extra cost of adding one more unit

Accepted Answer

Marginal Cost

Question 9

A good that is considered the same no matter where you get it

Accepted Answer

Commodity

Question 10

A decrease in the price of a substitute good would cause

Accepted Answer

Demand shift left

Question 11

Economic system in which people are free to exchange goods via voluntary exchange

Accepted Answer

Free Market Economy

Question 12

New technology reduces the costs of making digital cameras. The supply curve will:

Accepted Answer

Shift Right

Question 13

A decision-making process by which you compare what you will gain and what you will lose

Accepted Answer

Cost-benenfit analysis

Question 14

Which market system is under strict government control

Accepted Answer

Command Economy

Question 15

Reducing military spending to save money for road work is is an example of...

Accepted Answer

Guns or Butter

Question 16

the knowledge and skills a worker gains through education and experience

Accepted Answer

Human Capital

Question 17

Market structure where a few firms control 70-80% of the market

Accepted Answer

Oligopoly

Question 18

Perfect Competition: - many firms, identical products, no barriers to entry, no price control

Accepted Answer

True

Question 19

Pineapple juice just became incredibly expensive. I'm switching to orange juice. Orange juice is a...

Accepted Answer

Substitute Good

Question 20

The price elasticity of demand measures

Accepted Answer

responsiveness of quantity demanded to a change in a good’s price

Question 21

A good that consumers will no longer purchase once they have enough income

Accepted Answer

Inferior Good

Question 22

A restaurant invests in new iPads for the wait-staff to manage seating. This is an example of

Accepted Answer

Physical Capital

Question 23

A traditional economy is one in which people perform roles in society that have been established for generations

Accepted Answer

True

Question 24

Which of the following is considered to be price discrimination?

Accepted Answer

All of the Above

Question 25

This type of economy has a combination of public and private industries

Accepted Answer

Mixed

Question 26

Which is NOT an example of differentiating products

Accepted Answer

Lowering Prices

Question 27

The United States Post Office is an example of this type of monopoly.

Accepted Answer

Government Monopoly

Question 28

The most desirable alternative given up as a result of a decision

Accepted Answer

Opportunity-cost

Question 29

Minimum wage is an example of a

Accepted Answer

Price Floor

Question 30

You have to buy paintballs before you can use a paintball gun. The balls are best described as

Accepted Answer

Complements

Question 31

This market structure has no competition

Accepted Answer

Monopoly

Question 32

Monopoly: 1 firm, nearly impossible to enter the market, Price control, 1 unique product

Accepted Answer

True

Question 33

What is the definition of equilibrium price?

Accepted Answer

Quantity Supply is equal to quantity demanded

Question 34

A natural monopoly is

Accepted Answer

A market that is most efficient when 1 firm provides all output

Question 35

The period of the business cycle in which real GDP is increasing is called the

Accepted Answer

Expansion

Question 36

Mr. Reichard's dog is a (No, this question isn't on the test)

Accepted Answer

Hufflepuff, Gryffindor

Question 37

An economy that is producing below the maximum amount of goods and services possible is considered

Accepted Answer

Underutilized or Inefficient

Question 38

The term scarcity means

Accepted Answer

Limited resources

Question 39

When a few firms set the same, agreed upon prices it is known as

Accepted Answer

Price Fixing

Question 40

Any producer is known as a

Accepted Answer

Firm

Question 41

The goal of government regulation, at least in the US is..

Accepted Answer

Promote Competition

Question 42

A country that is experiencing a time period of low unemployment and low poverty rates will most likely also

Accepted Answer

Experience high GDP

Econ Mid-term Review

Questions 42

Econ Mid-term Review

Questions 42