8th Grade economics precomp review

What is imperfect information?

• When a member of a public sector switches to a member of the private sector

• When the market price is different than the actual price

• When a producer is not aware of the costs of resources, causing marginal revenue loss per product produced

• When the buyer, seller, or both lack information about the product quality

What is asymmetric information?

• When both parties have equal information about a transaction

• When one party has more or better information than the other

• When information is irrelevant to the transaction

• When information is perfectly distributed among all market participants

How can imperfect information affect market outcomes?

• It leads to perfect competition

• It can cause market failures and inefficiencies

• It ensures all parties make informed decisions

• It has no impact on market outcomes

Which of the following is an example of a market with imperfect information?

• A stock market with transparent and timely information

• A market where all products are identical and well-known

• A market where consumers have full knowledge of product quality

• A used car market where sellers know more about the car's condition than buyers

When does moral hazard occur?

• When the tax rate becomes disproportionate to a person, leading them to poverty

• When people take risks they would otherwise not take because they are insured

• When people spend more than their disposable income allows

• When a person retires without proper retirement benefits

What are subsides?

• A limit used to reach market equilibrium

• A barrier to entry in an oligopoly

• Payments from the government

• Portions of income taken by the government

How can subsidies impact market prices?

• They can lower the market price by reducing production costs

• They always lead to higher taxes

• They have no effect on market prices

• They increase the market price of goods

Which of the following is a consequence of moral hazard?

• Increased risk-taking behavior

• Decreased market competition

• Reduced government intervention

• Improved product quality

The study of the economic behavior of individual persons, families, and businesses is known as​ .

• microeconomics
• macroeconomics
• production possibilities curves
• Ubernomics

What is absolute advantage?

• The ability to deter market failure

• The ability to make more product with less resources

• The objective presence of a leveraged firm

• The ability to alter the demand in a market

Answer explanation

We barely talked abt this one :/