Economics Semester Exam Review

Which market structure: a few firms that work together to change output to control prices

• Monopoloy

• Oiligopoly

• Monopolistic Competition

• Perfect Competition

How are monopolies a problem for consumers?

• They prevent competition

• They are illegal in all countries

• They increase demand to create shortages

• • They have many externalities and are often the tragedy of the commons

If demand is low and supply is high, what is it called?

• Unintended Consequences

• Surplus

• Shortage

• Equalibrium

If demand for goods/services decreases, what happens to the price?

• Rises

• Falls

• Stays the Same

• Tragedy of the Commons

In what market structure is price competition the only competition?

• Monopoly

• Oligopoly

• Monopolistic Competition

• Perfect Competition

What kind of shift?

In the market for peaches, the trees are hit with a disease.

• Demand Left Shift

• Supply Left Shift

• Demand Right Shift

• Demand Left Shift

Which is NOT one of the roles the U.S. government plays in the economy?

• Buy goods and services

• Regulate the growth of the economy directly

• Collect taxes

• • Control all new businesses entering the market

To prevent bank failures and to give more confidence in the safety of banks, the federal government created what?

• The Central Bank of the United States

• The Senate

• The Federal Reserve System

• Credit

What are brokers?

• A system to prevent bank failures

• Paper used to replace currency

• People who buy and sell stock

• Where supply and demand balance each other out

Which is NOT one of the 5 economic freedoms?

• Freedom to earn profits

• Freedom to own property

• Freedom for workers to compete for jobs

• Freedom to bank without regulation