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Economics > 1st Quarter Exam 10/20/16 > Flashcards

1st Quarter Exam 10/20/16 Flashcards

1
Q

What is groups of firms that produce similar products or provide similar services?

A

Industries

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2
Q

Economists normally recognize what four main types of market models?

A
  1. Perfect Competition
  2. Monopolies
  3. Monopolistic
  4. Oligopolies
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3
Q

In order for an industry’s market to be perfectly competitive, it must have what characteristics?

A
  1. There must be a large number of independent sellers
  2. There must be a large number of independent buyers
  3. The industry must be one in which all firms produce a standardized product.
  4. Firms must have free access to the market
  5. Relevant market information must be made available to all firms and buyers
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4
Q

a firm that has no real control over the price it receives for its products is what?

A

Price Taker

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5
Q

The situation that arises when a single firm is the only supplier of a good for which no substitute exists is what?

A

Monopoly

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6
Q

What are the things necessary to have a complete monopoly of an industry?

A
  1. A firm must be the sole supplier of a good or service
  2. There must be no close substitutes for the firm’s product
  3. Entry into the market must be blocked
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7
Q

A monopoly granted by the government in order to encourage production is what?

A

Legal Monopoly

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8
Q

A monopoly that occurs when a single firm can satisfy the demand for a good more efficiently than multiple firms could what?

A

Natural Monopoly

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9
Q

What is the study of the choices that individuals and societies make in the production, distribution, and consumption of goods.

A

Economics

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10
Q

What is known as any system for the production, distribution, and consumption of goods and services.

A

Economy

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11
Q

Scholars of the production, distribution, and consumption of goods within an economy are known as _____.

A

Economists

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12
Q

_____ is the study of national and international economies and how these major economies are affected by large-scale choices and public policies.

A

Macroeconomics

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13
Q

A market in which there are a large number of firms that provide differentiated products and have free access to the market; one of the four main types of market models is what?

A

Monopolistic Competition

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14
Q

_____ is the study of specific components within a major economy and how the choices made by individuals, households, and businesses affect that economy.

A

Microeconomics

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15
Q

_____(s) seek to show the relationships among the various components of an economy.

A

Economic models

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16
Q

A(n) _____ seeks to help those making decisions to make wise choices.

A

Economic forecast

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17
Q

What are tangible items that people want and for which they will pay.

A

Goods

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18
Q

What are intangible goods produced by labor for which people expect to pay.

A

Services

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19
Q

In markets featuring monopolistic competition, we find the following three characteristics, which are what?

A
  1. There must be a large number of firms in the market
  2. These firms provide differentiated products
  3. Firms are able to easily enter or exit the market
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20
Q

What is a market that occurs when an industry is dominated by only a few firms?

A

Oligopoly

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21
Q

An oligopolistic market is characterized by the following:

A
  1. There are only a few firms in the entire industry
  2. Firms in an oligopoly may sell products that are either differentiated or virtually the same
  3. Potential firms are discouraged by the existence of significant entry barriers
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22
Q

What is the human desire to have and use a certain good?

A

a want

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23
Q

What is a mechanism that allows people to exchange goods?

A

a market

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24
Q

A very large number of people to whom very large quantities of products are sold is called a(n) _____.

A

mass market

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25
Q

The monopolistic practice in which firms secretly agree to charge the same high prices and offer only the same sort of goods and services is what?

A

Collusion

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26
Q

A collusion of businesses which join together to restrict or eliminate competition is what?

A

Trust

27
Q

What is a secondary definition of supply?

A

The amount of a good that is produced.

28
Q

What is the amount of a good that is bought at a certain price under certain conditions.

A

Demand

29
Q

According to the book, the first thing to understand about economics is that…

A

…all goods have to be worked for.

30
Q

Persons who work to provide goods are known as what?

A

Producers

31
Q

People who use goods are known as what?

A

Consumers

32
Q

T/F: There are an unlimited supply of some goods, but not all goods.

A

F: There is not an unlimited supply of ANY good.

33
Q

What is the old word for the bad habit of spending more money than one can afford?

A

Prodigality

34
Q

What is something it would be difficult to do without?

A

A need

35
Q

What is a desire, a longing, an appetite for something?

A

A want

36
Q

A(n) _____ is anything used in the production and distribution of goods and services.

A

A capital good

37
Q

_____(s) are those things produced for direct use by consumers.

A

Consumer goods

38
Q

What is the industrial skills and scientific methods that make possible efficient production.

A

Technology

39
Q

What word means usefulness?

A

Utility

40
Q

What word means “limited availability”?

A

Scarcity

41
Q

What is the worth that consumers attached to a good?

A

Value

42
Q

What two things allow the value of a good to fluctuate?

A

Utility and scarcity

43
Q

Who is the founder of the Austrian School Economics?

A

Carl Menger

44
Q

What is the basic question that the Diamond-Water Paradox asks?

A

Diamond water paradox asks why rare items such as diamonds normally command high prices while necessities such as water usually command low prices.

45
Q

T/F: Scarcity and utility usually determine the value of goods more than the amount of labor required to produce a good or other factors.

A

T

46
Q

The general rules or principles guiding the production, distribution, and consumption of goods.

A

The laws of economics

47
Q

_____ aims to build up the states treasury.

A

Mercantilism

48
Q

_____ believed stockpiling precious metals was the key to national wealth.

A

Mercantilists

49
Q

What is the difference in value of the goods that a country sells abroad compared to those it purchases from other countries?

A

Trade balance

50
Q

What are taxes that the government applies to imported goods?

A

Teriffs

51
Q

What is the establishment of colonies and extensive territories created to benefit their mother countries?

A

Imperialism

52
Q

What is the name that 18th century French economist gave themselves?

A

Physiocrats

53
Q

What is the French word meaning “let things alone”?

A

“Lassez-faire”

54
Q

_____ is the theories developed by economists of the 19th and early 20th centuries that stated that the free market was the best possible economic system.

A

Classical economics

55
Q

Who is known as the founder of modern economics?

A

Adam Smith

56
Q

What book did Adam Smith write?

A

The Wealth of Nations

57
Q

What is the separation of work into individual tasks?

A

Division of labor

58
Q

The division of tasks among workers allowed the production of goods by people doing the job they did best, a principle known as _____.

A

Specialization

59
Q

According to Adam Smith, what brings buyers and sellers together?

A

The “invisible hand”

60
Q

What word means economic success?

A

Prosperity

61
Q

What is the value of all the things that people own?

A

Wealth

62
Q

What are six ways to diminish poverty or increase well?

A
  1. Produce more goods from existing resources.
  2. Increase the amount of resources available for the production of goods.
  3. Find new resources to satisfy existing ones.
  4. Make goods already being produced more effective in satisfying ones.
  5. Reduce people’s wants.
  6. Redistribute the goods that are already being produced among the population.
63
Q

_____ is defined as human activity which results in the creation of goods and services.

A

Labor

Economics (7 decks)

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