stud
bud
Sign up
Log in
Home
Library
Explore
SAT
More
Microeconomics Review Flashcards | StudBud
Explore
/
Microeconomics Review
Microeconomics Review
20 terms
·
StudBud Administration
·
308 plays
#Micro
Flashcards
20 cards
F
Practice quiz
P
Host live
L
Questions
20
Answers
1
What is monopolistic competition?
Many companies selling similar but not identical products.
A very few companies selling identical products
One company selling identical products under different names
One company selling different products under different names
2
Which diagram illustrates the effect of an increase in government subsidies for firms?
A only
C only
D only
B only
3
An industry with 4 firms controlling the majority of the market is known as...
an oligopoly
a pure monopoly
a monopolistic competition
a pure competition
4
A one-firm industry is known as:
a perfect competition
an oligopoly
a monopoly
a monopolistic competition
5
Per diagram, a decrease in quantity demanded (as distinct from a decrease in demand) is shown
by shift from D1 to D2
move from point B to point A
shift from D2 to D1
move from point A to point B
6
Which of the following would probably result in shortages?
Government repeals the minimum working age to 12
Government lowers the minimum wage
Government guarantees farmers a minimum price for cotton
Government institutes a price ceiling for gasoline
7
What is monopolistic competition?
A very few companies selling identical products
Many companies selling similiar but not identical products
A company selling 3+ different products with different names
A company selling the identical product with different names
8
The owners of a firm have limited liability in:
a corporation, but not a sole proprietorship
A partnership, but not a sole proprietorship
Both a sole proprietorship and a partnership
A sole proprietorship, but not a partnership
9
What is real flow (3) to real flow (4)?
consumer spending
goods & services
land, labor, capital & entrepreneurial ability
wages, rent, interest & profit income
10
Which of the diagrams illustrates the effect of an increase in personal income in the market?
D only
C only
A only
B only
11
The law of supply states that...
producers offer more product at high price than at low price
producers offer more product at low price than at high price
the product supply curve is downsloping
consumers buy less at high prices than at low prices
12
Which of the following would probably result in shortages?
The government lowers the minimum wage
The government repeals the minimum working age to 12
Government guarantees farmers a minimum price for cotton
Government institutes a price ceiling for gasoline
13
The law of demand states that...
price & quantity demanded are directly related
the more buyers in a market, the lower will be product price
consumers will buy more at a low price than at high prices
consumers buy more at high prices than at low prices
14
A market is in equilibrium is when:
demand curve is downsloping & supply curve is upsloping
consumers pay a higher price than the equilibrium
amount producers want to sell = amount consumers want to buy
suppliers have surpluses that carry to the next month
15
A market is in equilibrium:
amount produced equals amount demanded
when suppliers have extra surpluses
whenever the demand curve is downsloping
consumer pays a higher price than the market clearing price
16
How much control over prices do companies in a perfectly competitive market have?
A moderate amount
It depends on the product
None
Total control
17
What type of business organization has stockholders?
Sole proprietorship
Corporation
LLC
Partnership
18
Which of diagram illustrates the effect of a decrease in regulations & taxes on businesses?
D only
C only
A only
B only
19
You receive your first paycheck ($68.74). What market is this occurring and what is the flow?
Factor/Money
Factor/Factors of Production
Product/Goods & Services
Product/Money
20
Which illustrates a government-set price ceiling?
C only
A only
B only
