CE.11abc12c Introduction to Economics

The U.S. has discovered a mine of diamonds which will increase the amount of diamonds available by 40%. What will happen to the price of diamonds?

• Price will remain the same

• Price will increase

• Price has decreased

• Price will fluctuate

Mad cow disease has destroyed 33% of all beef in the United States. People are still buying beef at a normal rate. What has happened to the price of beef?

• Price has increased

• Price has decreased

• Price has remained the same

• Price is fluctuating

When supply is high and demand for a good is low the price is?

• The price fluctuates unpredictably

• The price is high

• The price remains unchanged

• The price is low

When supply is low and demand for a good is high the price is?

• The price is low

• The price remains the same

• The price fluctuates

• The price is high

The point where supply and demand meet circled in red on the graph is called?

• Equilibrium price

• Supply price

• Demand price

• Market price

Money that has been earned after all expenses have been paid, and drives all decisions

• Profit

• Revenue

• Loss

• Investment

Rivalry between producers/sellers of a good or service is called

• Monopoly

• Competition

• Collaboration

• Substitution

This type of economy has private property, competition among businesses and Minimal government involvement the market determines who sinks or floats

• Mixed Economy

• Command Economy

• Free Market Economy

• Traditional Economy

This type of economy has private property or ownership and limited government control

• Mixed Economy

• Command Economy

• Traditional Economy

• Market Economy

People often perform the same type of work as their parents & grandparents, regardless of ability in this type of economy

• Mixed Economy

• Command Economy

• Market Economy

• Traditional Economy