1. Demand for a product is measured not only by
consumer desire for a product, but also by
2. which is the BEST synonym for the word "profit"?
3. Why is the consumer considered "king" in a
capitalist economy?
D
how many hours an employee should
work each week
14.
4.
According to the information on the washboard
mussel harvest, the approximate price for
mussels in 1988 was
5. A decrease in the price of a particular product will
result in
6. Kim works on an automobile assembly line. Kim's
job illustrates a production process that relies on
7. The minimum wage is a type of
8. What is the unit of study in microeconomics?
9. When economists refer to "demand" they mean
which of the following?
10. People against raising the minimum wage argue
that when a legal minimum wage is established
above the equilibrium wage in the labor market
A
B
C
D
The flow of goods and services to consumers is
illustrated by
the move from the product market to the Individual
the move from product market to the Business
the move from the factor market to the individual
the move from the factor market to the business
11.
which would cause a shift of the supply curve
from S1 to S2?
12. The payments for land, labor, capital, and
entrepreneurial ability respectively are
13. Which of the following is an example of a
microeconomic decision?
A whether to increase or decrease the money
supply
B
whether to increase of decrease taxes
C
how to reduce the unemployment rate
15.
16. All the goods people would be willing and able to
buy would be called what?
26.
17.
18. The law of demand states that As the price goes up
…
19. The ability of any good or service to satisfy
consumer wants is called what?
27.
Answer the following questions on how
demand would be affected if.....
20. If there is an increase in real income…
21. If there is a decrease in real income
22. If the price of hotdogs is reduced what happens to
the demand of hamburgers?
23. If doctors find that listening to cd's gives you brain
tumors….
24. If the utility of a product increases…
25. If the price of ketchup & mustard are cut in half,
how will the demand for hotdogs MOST
LIKELYbe affected?
28.
29. What is bought and sold in the product market?
30. According to this diagram where do individuals
spend the income that they earn?
38. Who is willing to take a financial risk?
39. The new oven in Mr. Brown's bakery allows him to
produce bread more efficiently and more cheaply.
What is the MOST LIKELY effect to price and
quantity demanded?
40. For businesses and entrepreneurs, which
of these is generally considered to be the
BEST measure of success?
A net profit
B total revenue
C marginal cash
D marginal revenue
41. Definition of Pure/Perfect Competition
31.
In a circular flow diagram, labor and other
factors of production are sold on resource
markets. These resources are then used to
produce goods and services sold on product
markets. How are businesses involved in this
flow?
32. Money can be easily converted into goods or
services. This is an example of which “function of
money”?
33. In a free enterprise system, what drives individuals
to risk their savings in a business venture?
34.
Looking at the graph, if there is an increase in income
for the households in this market, what is the MOST
LIKELY result?
35. What causes a shift to the left in a demand curve?
36. A modest price increase for a monthly cell phone
package has had little or no effect on demand. This
MOST LIKELY indicates that demand for the
product is
37. In a business organization, the splitting of
management and ownership into two distinct
functions is an example of a(n)…
42.
43. What is a price ceiling?
44.
Which market structure is BEST indicated by
the photograph?
45. firms produce and sell identical products
· firms have a relatively small market share
· consumers are aware of the products and
their prices
· there are few barriers to entry into the
market
All of these are describing what market type of
market structure?
46. · there are relatively numerous firms in the market
· firms sell differentiated version of the same
product
· firms have limited control over the prices
they set
· there are few barriers to entry into the market
. examples would be pizza restaurants, fast
food, gas
stations, grocery stores, hardware stores.
All of these are describing what market type of
market structure?
47. A corporation is LEAST LIKELY to have which
advantage?
A ability to sell stock
B ability to raise capital
C establishment & set up their business easily
D limited liability of stockholders
48.
50 Which relationship is the BEST
example of the
Law of Supply?
The quantity of a good supplied rises as the
A
price rises.
49.
According to the most recent Census,
which
business organization form has the
LARGEST share
of sales throughout the United States?
B
The quantity of a good supplied rises as the
price falls.
C
The quantity of a good supplied falls as the
price rises.
D
The quantity of a good supplied is not impacted
by price.