stud
bud
Sign up
Log in
Home
Library
Explore
SAT
More
Microeconomics Review Flashcards | StudBud
Explore
/
Microeconomics Review
Microeconomics Review
24 terms
·
StudBud Administration
·
12,767 plays
Microeconomics review #microeconomics
Flashcards
24 cards
F
Practice quiz
P
Host live
L
Questions
24
Answers
1
In the circular flow model, what do individuals SELL to businesses
Resources
Revenue
Goods and Services
Products
2
Interdepence and price wars between a few firms are characteristics of which market structure?
Oligopoly
Monopoly
Monopolistic Competition
Perfect Competition
3
Unlike perfect competition, monopolistic competition features ______.
Well informed buyers and sellers
Independent buyers and sellers
Freedom for buyers and sellers
product differentiation
4
Which market is C,E,L,L sold in?
Black Market
Factor market
Flea Market
Product Market
5
Which sentence describes market conditions at equilibrium/market clearing price?
Demand is greater than supply
Supply and demand are equal
There is no supply or demand
Supply is greater than demand
6
What problem does a price ceiling below equilibrium create?
Surplus
Shortage
Minimum Wage
Profits
7
One advantage of operating as a partnership would include???
Greater power than a sole trader for decision making
Specialization of the partners in needed areas
Being able to raise capital through shares of stock
Limited liability for all partners
8
At what price would there be a surplus on this graph?
$4
$6
$5
$2
9
What is the economic term that describes the situation where there is more demand than supply?
Shortage
Surminus
Surplus
Equilibrium
10
A market structure that features a unique product and total price control by the firm is a ???
Monopolistic Competition
Corporation
Monopoly
Sole Proprietorship
11
The flow of goods and services from business to households primarily takes place in the???
product market
financial market
intermediary good market
factor market
12
If Ed bought $800 in Verizon stock and then it went bankrupt, how much would he be liable for?
Unlimited liability, having to sell stuff to pay the debt
Limited liability, he will be remibursed the $800
Limited liability, he will only lose the $800 he invested
Partial liability, he will use savings to pay company debt
13
Moving from 6 dollars to 9 dollars would lead to a
Increase in demand
Increase in quantity demanded
Decrease in quantity demanded
Decrease in <br>demand
14
What is the basic unit of study in microeconomics? (hint: think circular flow)
government taxes and spending
employment and unemployment figures
individual businesses and households
total consumer spding and saving
15
Buyers help determine price in a market economy by
How they are taxed
How much they value the dollar over other currencies
How much they produce as households
How much they demand a product and are willing to spend
16
Which of the following is considered a negative side effect of a high minimum wage (above equilibrium)?
increased interest rate
full employment
Increased unemployment due to a surplus of labor
Failure to meet production
17
The law of supply states that
the higher the price the greater quantity producers will supply
the higher the price the more consumers will buy
the lower the price the more consumers will buy
the lower the price the greater quantity producers will supply
18
Where do individuals spend the money they earn?
Product Market
Super Market
Factor Market
Households
19
A large number of independent buyers and sellers who exchange identical products is known as
Monopolistic Competition
Oligopoly
Monopoly
Perfect Competition
20
At what price would there be a shortage on this graph?
$5
$10
$3
$7
21
What would cause the following shift shown in the graph?
A new health report says yogurt makes you sick
Yogurt prices rise due to milk shortage
Yogurt prices fall to milk surplus
A new health report says that yogurt keeps you health
22
Amy opened a new business. She has unlimited liability but can make all the decisions.This is a
franchise
sole proprietorship
partnership
corporation
23
What is shown in the graph below?
A decrease in demand
An increase in quantity supplied
An increase in supply
A decrease in supply
24
What is it called when you have more supply than demand?
Buttload
Surextra
Surplus
Shortage
