Intro to Economics

Which market structure only has a few sellers competing against each other?

• Oligopoly

• Monopoly

• Market Economy

• Monopolistic Competition

Which of the following is a factor of production?

• Labor
• Taxes
• GDP
• Trade Agreements

In a command economy, who primarily makes economic decisions?

• The government
• Individual consumers
• Private firms
• Foreign investors

Which market structure is characterized by a single seller?

• Monopoly
• Perfect Competition
• Oligopoly
• Monopolistic Competition

What does the circular flow model illustrate?

• The interaction between households and firms
• The increase in GDP over time
• The difference between public and private goods
• The effects of tariffs on trade

What is the definition of economics?

• The study of how resources are allocated
• The calculation of national income
• The regulation of government policies
• The growth of international trade

Which term refers to the cost of the next best alternative foregone?

• Opportunity Cost
• Marginal Cost
• Fixed Cost
• Variable Cost

In which market structure do firms sell differentiated products?

• Monopolistic Competition
• Monopoly
• Oligopoly
• Perfect Competition

Which economic system is characterized by private ownership and free markets?

• Market Economy
• Command Economy
• Mixed Economy
• Traditional Economy

What is a key characteristic of a traditional economy?

• Reliance on customs and traditions
• Extensive use of technology
• Centralized planning by the government
• High levels of competition