When economists refer to “demand”, they mean which of the following?

how much consumers will purchase a different prices

How are market prices set?

by the interaction of producers & consumers

A market economy has an advantage over a traditional economy in that the market economy

adjusts to consumer demands over time

Entrepreneurship and labor interact in which of the following ways?

Entrepreneurship makes decisions about the use of labor

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Microeconomics

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Unit 2 quiz

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Questions 15

Answers

1
What economic problem do both higher-income nations and lower-income nations have in common?
too much government
lack of capital goods
scarcity of resources
too many skilled workers
2
Government places a price ceiling on diamonds, what would it create?
price collusion
shortage
monopoly
surplus
3
2. An example of a price ceiling is…..
rent control
taxes on imports
income tax
government prices on milk
4
When economists refer to “demand”, they mean which of the following?
how much people want the product if it is free
how much satisfaction buyers receive from a purchase
how much consumers will purchase a different prices
how much sellers will supply at a particular price
5
Sharon decided to open a business. She hired one helper. What is a disad of business described?
ease of organizing the firm
unlimited liability
no separation of ownership and control
double taxation
6
How are market prices set?
by the interaction of producers & sellers
by the interaction of consumers & buyers
by the government
by the interaction of producers & consumers
7
A market economy has an advantage over a traditional economy in that the market economy
adjusts to consumer demands over time
controls all prices and all wages
fixes incomes of consumers to one level
limits the profits of large corporations
8
In which market structure does a firm have greatest control over its product’s price?
perfect competition
oligopoly
monopoly
monopolistic competition
9
Firm X has developed a new mechanical device. As the sole producer of this product, Firm X is
technological monopoly
natural monopoly
government monopoly
geographic monopoly
10
Interdependence & price leadership are characteristics of a firm in what market structure?
perfect competition
monopolistic competition
oligopoly
monopoly
11
Entrepreneurship and labor interact in which of the following ways?
entrepreneurship & labor receive payment in form of interest
entrepreneurship & labor receive payments in form of rent
Labor makes decisions about the use of entrepreneurship
Entrepreneurship makes decisions about the use of labor
12
The point where supply and demand intersect is referred to as
Quantity
Supply
Equilibrium
Price
13
When Ford and Chevrolet get together to set the prices of their vehicles, they are doing what?
Incentive
Supply
Collusion
Ceiling
14
What effect does a price floor have on the supply of a good?
results in lowered demand
no effect
results in a shortage
results in a surplus
15
The minimum wage is a type of
price floor
marginal price
price ceiling
comparable worth

Microeconomics Flashcards | StudBud