Economics Standard 2 Quizziz

A major distinguishing feature between capitalism and socialist or command economies is that _____. (2.2)

• decision making is typically decentralized in a socialist economy and is centralized in capitalistic economies

• decision making is typically decentralized under capitalism while it is centralized in command economies

• with capitalism, the average citizen is always wealthier than in socialist economies

• public ownership of resources is central to capitalism

The law of demand utilizes this term to describe the relationship between price and quantity. (2.3)

• Direct relationship

• Indirect relationship

• Random relationship

• Inverse relationship

How would the demand curve reflect an increase in level of demand? (2.3)

• Curve shifts to the left

• Curve shifts to the right

• Same curve, more quantity demanded

• Same curve, prices rise

Households supply four basic types of resources. They include all of the following except _____. (2.2)

• land

• final goods and services

• capital

• entrepreneurial ability

Concerning public utilities, the stated reason for resorting to regulation of a monopoly, rather than promoting competition through antitrust, is that the industry in question is believed to be a ______. (2.5)

• Natural monopoly

• Producer of externalities

• Profit-maximizing monopoly

• Revenue-maximizing monopoly

Which of the following firms is the closest to being a perfectly competitive firm? (2.6)

• Hot dog vendor in New York

• Microsoft Corporation

• Ford Motor Company

• Campus bookstore in Charleston

A type of market situation where price is the only determining factor of a purchase reflects a(an) _____. (2.6)

• monopoly

• monopolistic competition

• oligopoly

• perfect competition

The most important characteristic of equilibrium price is that it _____. (2.4)

• clears the market and leaves neither a surplus nor a shortage

• clears the market and guarantees that producers earn a profit

• maximizes the quantity demanded

• minimizes the quantity demanded

A shortage occurs whenever _____. (2.4)

• goods are scarce

• price becomes less than equilibrium price

• quantity demanded is equal to quantity supplied

• quantity supplied is at equilibrium

When a department store lowers the price of a product during a sale, the manager is counting upon the principle of _____. (2.3)

• shifting demand curve

• diminishing marginal utility

• inelastic demand

• law of demand