Putting it into practice: Economics 1

What is the main idea behind a free market economy

• Allows individuals to make choices about how to use resources to satisfy their needs

• Companies can create markets to have control over consumers

• Allows the government to oversea the economic state and protect the people from illegal trades

• Producers have the freedom to set prices and make consumers buy them at the price

What does this diagram represent?

• Law of supply

• Law of demand

• supply and demand

• the stock market

What does this diagram represent?

• Law of supply

• Law of demand

• supply and demand

• the stock market

If the equilibrium is $9.99 at what price will a shortage occur

• $9.99

• 1.99

• 13.00

• 10.00

If the equilibrium is $14.99 at what price will a surplus occur

• 9.99

• 8.99

• 26.00

• 14.99

Mr. Rush goes to Starbucks and notices that the price of coffee has been raised by $2.00 because of the price he decides he no longer wants Starbucks. What item is best described in this scenario?

• Law of supply

• Elastic demand

• Limited Liability

• Collective bargaining

• Price volatility

Formed in the 1800's, workers created an association for the purpose of improving their economic status and working conditions

• Communism

• Labor Unions

• Collective bargaining

• Trust

Dr. Flores wants to open a business that bakes cookies. She buys all the ingredients needed, an oven. But something is missing, what factor of production might she be missing?

• Land

• Labor

• Entrepreneurship

• Capital

Little Timmy is really good at inventing new ways of life but his family has always just been farmers so he will end up being one too. What economy might Timmy be living in?

• Traditional Economy

• Command Economy

• Market Economy

• Mixed Economy

How might children in a traditional economy be an example of tradition?

• New generations bring new ideas, further developing the economy

• Children work same jobs as parents

• Children leave to other economies and bring back new ideas

• Elders are always superior to the young