Econ Microeconomics

What does real flow (3) to real flow (4) represent?

• Wage, rent, interest & profit income

• Goods & Services

• Land, labor, capital & entrepreneurial ability

• Consumer spending

What does real flow (7) to real flow (8) represent?

• Wage, rent, interest & profit income

• Goods & Services

• Land, labor, capital & entrepreneurial ability

• Consumer spending

Which illustrates a price floor?

• A

• B

• C

• P*

When is a market in equilibrium?

• When suppliers have extra surpluses that will carry over to the next month

• When consumers pay a price that exceeds the intersection of supply and demand curves

• When the amount producers want to sell is equal to the amount consumers want to buy

• Whenever the demand curve is downsloping and the supply curve is upsloping

Which diagram illustrates the effect of a decrease in personal income?

• A

• B

• C

• D

Which diagram illustrates an increase in the number of firms in the market?

• A

• B

• C

• D

Which illustrates a decrease in quantity demanded?

• X to Y

• Y to X

• D1 to D2

• D2 to D1

Which type of business organizations have limited liability?

• A corporation, but not a sole proprietorship

• A proprietorship, but not a partnership

• A sole proprietorship, but not a corporation

• Both a sole proprietorship and a partnership

Suzy Q started a catering business, but soon realized that it wasn't the career for her. She closed her business relatively easily and returned to school.

What type of business does Suzy Q have?

• Partnership

• Sole proprietorship

• Closely held corporation

• Corporation

What type of an industry has a few firms controlling the majority share of the market?

• Monopolistic competition

• Oligopoly

• Pure monopoly

• Pure competition