Tucker Econ Vocab Quiz #2

Scarcity is...

• the limited availability of resources to meet unlimited wants
• the abundance of resources to meet limited wants
• the process of producing more resources than needed
• the equal distribution of resources among all individuals

The point on the graph shows no shortage or surplus. This is also called

• market failure
• price ceiling
• demand shock
• equilibrium price

The image of the graph shows which curve?

• Supply

• Demand

• Market Price

• Pure Competition

What is Opportunity Cost?

• Opportunity cost is the cost of the next best alternative that is given up when making a choice.
• Opportunity cost is what happens when you make money.

• Opportunity cost is the total cost of production.
• Opportunity cost refers to the monetary value of a product.

The image shows which kind of curve?

• Supply

• Demand

• Pie chart
• Equlibrium

Pure Competition is

• A market structure where firms compete on price and quality only.
• A market structure with few firms selling differentiated products.
• A market structure with many small firms selling identical products.
• A market structure with a single large firm dominating the market.

What are the 3 basic economic questions?

• When to produce
• Where to produce
• What to produce, How to produce, For whom to produce
• Why to produce

A sole proprietorship is ran by how many individuals?

• Two individuals
• Three individuals
• A group of partners
• One individual

What is a market economy?

• A market economy is controlled entirely by the government.
• A market economy relies solely on barter and trade without currency.
• A market economy is characterized by fixed prices set by authorities.
• A market economy is an economic system driven by supply and demand with minimal government intervention.

What is a command economy?

• A command economy is an economic system where the government makes all economic decisions.
• A command economy allows consumers to dictate production and pricing decisions.
• A command economy is characterized by free market principles and minimal regulation.
• A command economy is where businesses operate independently without government intervention.