Final Exam Review

The study of how people satisfy their needs and wants is called?

• Economics

• Government

• Supply and Demand

• Production Possibility

What type of economic system is where prices are determined by unrestricted competition between privately owned businesses?

• Free Market

• Mixed economy

• Command Economy

• Traditional Economy

What is limited quantities of resources to meet unlimited wants?

• Scarcity

• Shortage

• Demand

• Resource cost

What sector of the economy that is controlled by the government?

• Public

• Private

• Free

• Control

What is an advantage of command markets?

• Provides basic necessities for little to no cost

• Controls the means of production

• Offers a variety of goods to the people

• There are no advantages

What is the law of demand?

• As price increases quantity demanded decrease

• As price increases quantity demanded increases

• As price increases demanded decrease

• As price increases demanded increases

What is the consumers or producers reaction to a change in price?

• demand

• supply

• elasticity

• there is no reaction

The maximum price that can be charged for a good or service?

• Price floor

• Price ceiling

• Demand curve

• Equilibrium

If there is a decrease in subsidies provided what happens to price and quantity?

• Price up Quantity down

• Price up Quantity up

• Price down Quantity down

• There is no correlation

What type of market structure has same, same product?

• Perfectly Competitive

• Monopolistically Competitive

• Oligopoly

• Monopoly