Final Exam

What is Economics?

• how a nation decides to satisfy the never ending wants of the consumers

• The study of how business, individuals and nations allocate scarce resources

• How individuals interact and exchange good with one another

• The study of how businesses convince consumers to purchase their products

Which of the following matches a Traditional Economic System?

• Beliefs, customs, and history to guide production and distribution

• Beliefs of those purchasing the goods

• Traditions of the business owner in charge

• The pricing of goods dictated by supply and demand

What economic system is largely controlled by the government?

• Monopoly Economic Competition

• Perfect Competition

• Command Economic System

• Traditional Economic System

Which of the following describes a Market Economic System?

• An economic system that combines the elements of a market economy and the elements of a planned economy

• Command

• Perfect

• Economic decisions and the pricing of goods and services are guided by the interactions of a country's individual citizens and businesses

What are the three types of economic competition?

• Perfect, Monopoly/Monopolistic, and Oligopoly

• Perfect, Command, Monopoly

• Oligopoly, Command and Market

• Command, Market, Perfect

Define Perfect Market Competition

• This is the polar opposite of a Perfect Market Economy

• Perfect

• Many firms supply the market.

• All competition outside of the realm of Perfect, is imperfect. Perfect Competition is not common or even sustainable

What is a Monopoly Competition?

• a single firm accounts for all the sales of a particular good or service. The firm is the industry since there are no other suppliers

• All competition outside of the realm of Perfect, is imperfect. Perfect Competition is not common or even sustainable

• an activity involving two or more firms, in which each firm tries to get people to buy its own goods in preference to the other firm's goods

• Oligopoly

What is Supply and Demand?

• A consumer's income, preferences and willingness will play a large part in demand alway

• Because buyers have finite resources, their spending on a given product or commodity is limited as well, so higher prices reduce the quantity demanded.

• A theory that explains the interactions between the sellers of a resource and the buyers of the resource

• Equilibrium is ideal when it is acceptable to buys AND sellers