ECON Micro Almost There

What is a resource market?

• a market that provides goods and services for households

• a market that provides factors of production (land, labor, and capital) to firms

• a market that provides money for firms in the form of loans

• a market such as a grocery store

As a sole proprietor, Jessica took out a loan to buy equipment for her in-home business. If Jessica's business does not make enough money to pay back her loan, she will have to sell personal property to cover her outstanding obligation. Which of the following conditions affects sole proprietors but not corporations

• obligatory property

• proprietary liability

• personal obligation

• unlimited liability

Which market structure has the largest number of suppliers?

• monopolistic competition

• monopoly

• oligopoly

• pure/perfect competition

The term quantity demanded refers to

• the entire series of prices and quantities which comprises the demand schedule

• the amount of a product which will be purchased at some specific price

• the amount of a product which will be provided for sale at some specific price

• a situation where the income and substitution effects do not apply

The Law of Supply states that:

• producers will offer more of a product at low prices than they will at high prices

• producers will offer more of a product at high prices than they will at low prices

• the product supply curve is down sloping

• consumers will purchase less of a good at high prices than they will at low prices

What happens when a price is set below the equilibrium price?

• shortage

• surplus

What happens when the price is set above the equilibrium price?

• shortage

• surplus

Which curve will shift if there is a decrease in personal income and we are in the market for a normal good? Which direction will it shift?

• supply/left

• supply/right

• demand/left

• demand right

Equilibrium is reached when what occurs?

• quantity supplied equals quantity demanded

• there is no change in the quantity supplied

• the price increases

• quantity supplied is greater than quantity demanded

You receive your first paycheck. In what market is this occurring and what is the flow?

• product market/money

• factor market/factors of production

• product market/goods and services

• factor market/money