Econ 9 weeks test review

Scarcity is a basic economic problem because —

• resources are limited

• governments limit production

• opportunity costs limit demand

• people have trouble making choices

______ will determine the demand of a good. 

______ will determine the supply of a good.

• sellers, buyers

• buyers, sellers

• shortages, surplus

• surplus, shortages

In comparison to the U.S. free enterprise system the economy of China is characterized by a lack of —

• competition

• well-paying jobs

• trade incentives

• manufacturing industries

Which of the following is most characteristic of the U.S. free enterprise system?

• Government price controls

• Nationalization of energy companies

• Markets that respond to consumer demand

• Public ownership of the factors of production

One of the benefits of the U.S. free enterprise system is the —

• amount of choices for consumers

• guaranteed returns on investments

• lack of union participation by workers

• equal distribution of goods and services

With a given amount of resources, a country with a comparative advantage will produce a product with —

• decreased demand

• lower opportunity costs

• cheaper natural resources

• higher quality specifications

Which market structure has a strong emphasis on innovation, allowing companies to temporarily charge more for their products?

• Monopoly

• Oligopoly

• Pure Competition

• Monopolistic Competition

The basic idea of choice presents which of the problems in economics?

• People get to decide what they want.

• Businesses can sell what they want.

• Decisions produce costs.

• Choice is a way of life.

Which of the following accounts for why countries specialize in particular trade products?

• Government regulations

• Variation in the size of markets

• Unequal distribution of resources

• Variety in the types of economic systems

Tariffs on imported products may increase customers to increase domestic sales.  This is because tariffs:

• Decrease the price of products

• Increase the price of products

• Decrease the amount of products entering a country

• Increase the amount of products entering a country