Study Economics Final Exam

A price index determined by measuring the price of a standard group of goods meant to represent the market basket of a typical urban consumer.

• Gross Domestic Product

• Consumer Price Index

• Unemployment

• Inflation

Sophia is starting her own coffee shop. What economic term would best describe Sophia and what does that term mean?

• Consumer – a person who uses or consumes goods

• Partnership – partner in the lemonade stand

• Entrepreneur- - person who takes a risk to start a new company

Type of unemployment that occurs when workers skills do not match those needed for the jobs available.

• Seasonal Unemployment

• Structural Unemployment

• Frictional Unemployment

• Cyclical Unemployment

When too many watermelons are harvested, a market might be said to have a ‘surplus’, because more watermelons are produced then are demanded.  What is likely to happen to the price of watermelons under these conditions?

• The price would fall
• The price would stay the same
• The price would rise
• None of the Above

VOCABULARY: Market structure where only a few very large sellers dominate an industry.

• Monopoly
• Oligopoly
• Supply
• Demand

The amount of goods or services available is called?

• supply
• demand
• producer
• consumer

Which of the following is characterized as ‘the point where the quantity of a good supplied is the same as the quantity demanded of that good’?

• The S/D Similarity       
• The Equilibrium Price
• Price-Fixing     
• Price Adjustment Point

Taking reasonable risks to try to increase an amount of money

• Buying

• Investing

• Spending

• Budgeting

Which of the following reasons best suggests why Oligopolies tend to happen in Aircraft and Automobile manufacturing industries?

• Laws state that only a certain amount of manufacturers are allowed
• House prices in Detroit are too low for more people to move there
• Entering those industries is very expensive and requires engineering expertise
• New companies must pay a fee to enter into those industries

Guy bought tickets to a concert but there is a bad snow storm. He decides to go anyway because he paid for it. This is

• Sunk Cost Fallacy

• Endowment Effect

• Overconfidence

• Herd Mentality