Economics 9W Test (1st 9W)

Competition leads to

• lower prices and better products

• higher prices and low-quality products

• lower prices and low- quality products

• higher prices and better products

What is the main purpose of economic systems?

• manage and distribute resources, goods and services

• implement laws

• track government inflation

• assign jobs

free trade among countries leads to

• less jobs

• economic growth

• less migration

• conflict among countries

If PRICE goes UP,

• supply goes down; demand goes up

• supply goes up; demand goes down

• supply goes up; demand goes up

• supply goes down; demand goes down

perfect competition markets are complicated because

• there's little to no examples available of this type of market

• there's high barriers to enter the market

• monopolies are illegal

• there is no competition

Monopolistic competition markets are common in the US. In this type of market, companies sell similar, but different products. How do companies compete in this market?

• promoting differences in products

• increasing supply

• raising prices

• improving safety of workers

One reason why countries SPECIALIZE in different products is because of the UNEQUAL DISTRIBUTION OF RESOURCES in the world. What is NOT a result of specialization?

• better products

• more options

• free trade

• low-quality products

A type of market where ONE seller controls the entire market is called a

• oligopoly

• monopoly

• perfect competition

• monopolistic competition

Tariffs are fees charged on countries that want to sell their products in other countries. If they want to increase trade with other countries, they should negotiate to ______

• lower tariffs

• increase tariffs

• keep tariffs the same

• lower the value of their money

an example of a capital tool is a

• hammer

• cows

• cashier

• entrepreneurs