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Worksheetsunit 2 review
Total questions: 64
Worksheet time: 1hrs 7mins
When you buy a game system and games together, this is an example of which economic concept?
Complements
Substitutions
Trends
Supply
When you buy a PlayStation instead of an X-Box because the price of the PlayStation went up, this is an example of what?
Complements
Substitutions
Supply
Input Prices
_____ refers to the desire, willingness, and ability to buy a good or service.
Supply
Demand
Law of Demand
Market Supply
____ is the struggle between buyers and sellers to get the best products at the lowest prices.
Competition
Productivity
Free enterprise
Economic freedom
When a new producer of soap enters the market, and the supply curve shifts to the right, which determinant of supply shift is this an example of?
Number of Sellers
Subsidies
Producer Expectations
Input Costs
This graph demonstrates
A shift in the Supply Curve
A higher market price after the shift of the Demand Curve
A lower market price after the shift of the Demand Curve
No change in the market quantity after the shift of the Demand Curve
The graph below is an example of a
Demand Schedule
Demand Curve
Supply Schedule
Supply Curve
as price increases, supply increases
as prices decrease, supply increases
Which of the following describes a monopoly firm?
Single seller
Many sellers
Many substitutes
No barrier to entry
A ______________ is created when the demand for a good is higher than the supply.
shortage
surplus
equilibrium
Farmers in California have had wonderful weather. They have produced the largest crop of watermelons in years. What will happen to the price of watermelons?
The price will go up.
The price will go down.
When the supply of something is high, the price for it is
high
low
not affected
When the supply of something is low, producers can charge
less
more
As the price of an item goes down, the demand for it tends to go
up
down
stays the same
barter
store
market
trade
Select all that apply. The law of supply states that__________.
as price increases, supply increases
as price increases, demand decreases
as prices decrease, supply increases
as price decreases, supply decreases
Supply refers to the actions of _________, whereas demand refers to the actions of ________.
producers, consumers
quantities, prices
consumers, producers
prices, quantities
What are the four main parts of the circular flow diagram?
Product Market, Stock Market, Factor Market, Households
Product Market, House Market, Factor Market, Good Market
Resource Market, Product Market, Households, Businesses
Resource Market, households,
Stock Market,
Firms
Where are productive resources exchanged in the circular flow model?
Resource Market
Product Market
Stock Market
Producer Market
Someone buys a car in exchange for a large amount of money. This exchange occurred in the _____________
Product Market
Resource Market
Money businesses receive after the sale of a good or service.
Revenue
Wages
Rent
Donation
In the circular flow diagram firms pay wages for which factor of production?
Land
Labor
Entrepreneurship
Raw materials
Where are productive resources exchanged in the circular flow model?
Resource Market
Product Market
Firms
Individuals
Someone buys a car in exchange for a large amount of money. They have completed an exchange in which part of the circuclar flow model?
Product Market
Factor Market
Firms
Individuals
-No separation between owner and business
-Unlimited personal liability
-Governed by Board of Directors
-CEO, COO, CFO
-Stocks sold to raise capital
-Unlimited Personal Liability
-No separation between owners and business
This definition best describes...
The main advantage of a Corporation is...
limiting liability for owners and stockholders.
giving many owners a say in business decisions
being inexpensive and easy to establish.
requiring fewer state and federal regulations
The following are disadvantages of a General Partnership, EXCEPT:
Owner is fully liable for partners actions
Larger sources of funds
Limited existence
Each business partner is granted authority to manage the business on behalf of the other two
What protection does a limited liability offer?
Protects the company but also allows personal assets to be attached
Protects you from being personally responsible for business debts or legal judgments against the company
Provides the same protection as a Corporation
Protection as long as the business is a partnership
Price ceiling is located above the equilibrium price.
True
False
Price ceiling is a legal maximum price for a product.
True
False
Which of the following is an argument supporting an increase to the minimum wage?
98.5% of workers earn higher than minimum wage.
Wages have not kept pace with increases in worker productivity.
There will be fewer jobs available for low-skilled workers.
It may increase the cost of bringing goods and services to market.
the lowest legal price that can be paid for a product
price ceiling
price floor
target price
A _______ _______ is an unincorporated business that has just one owner.
sole proprietorship
oligopoly
partnership
monopolistic competition
An ___________ is when a few companies have significant control over a given market.
partnership
oligopoly
monopoly
revenue
minimum price that can be charged for a good/service, set by the government, casues a surplus normally
price ceiling
price floor
shortage
surplus
________________ create shortages
Price ceilings
Price floors
The image here is an example of a ________, which causes a _________
Price Ceiling: Shortage
Price Ceiling: Surplus
Price Floor: Shortage
Price Floor: Surplus
A ________ is a business entity that is owned by its shareholders.
monopoly
oligopoly
corporation
sole proprietorship
Price when quantity supplied equals quantity demanded
Equilibrium Quantity
Shortage price
Surplus price
Equilibrium Price
If a price floor was set at $320, what quantity would consumers purchase?
20
40
60
80
Money consumers spend on a good or service
Wages
Interest
Income
Consumer expenditure
Money flows __________ through the entire circular flow model
Counter clockwise
Clockwise
______________ creates surpluses
Price floors
Price ceilings
Point A represents:
Product Market
Resource Market
Firms
Households
Point C represents:
Product Market
Resource Market
Firms
Households
Arrows 2-4 represent
The flow of goods and services
The flow of productive resources
Money spent on productive resources
Money spent on goods and services
Which arrows refer to the flow of productive resources?
Arrows 1 and 3
Arrows 2 and 4
Arrows 5 and 7
Arrows 6 and 8
What does LLCE stand for? (Hint - it's our productive resources!)
Land, labor, computers, entrepreneurship
Land, labor, capital, and entrepreneurship
Labor, liability, capital, entrepreneurship
Land, labor, capital, energy
