ECON MIDTERM Flashcards
Richard wooley can suck my dick
Which of the following describes the effects of price floors on the US sugar industry
They helped sugar farmers while increasing the price of sugar for consumers
A market structure in which only a few large sellers dominate the market and have the ability to affect prices is a
Oligopoly
What do most economists believe is the most efficient way to allocate resources
Competitive markets
Price x quantity=
Total revenue
Which of these could a firm accomplish during a short-run production period
Hiring and firing of workers
Which of these BEST describes the influence of high prices on the behavior of producers
They are an incentive for producers to produce more
Which of these best describes the influence of high prices on the behavior of producers
Incentive for producers to produce more
Which of these results from the repeal of an item’s subsidies
A leftward shift of that items supply curve
What is the relationship between income and demand for normal goods
An increase in income increases demand
How does the government operate in a free-enterprise economy
It establishes laws and rules to maintain competition
How does the government operate in a free-enterprise economy
It establishes laws and rules to maintain competition
Protection from layoffs, illness, injuries, or disabilities fails under the goal of
Economy security
What is the name of the federal insurance program for senior citizens
Medicare
Which of the following statements describes why a nation with a command economy might resist a shift to a free market
People who hold political power are threatened by fundamental change
Which of the following is a disadvantage of a market economy
It contains a high degree of uncertainty
Which statement describes a disadvantage of a command economy
Nothing stops the government from making things that people don’t desire
When an economy produces a combination of goods that lies on the production possibilities frontier
Resources are being used fully and efficiently
When opportunity cost is constant across all production levels, the production possibilities frontier is
A straight downward sloping line
When opportunity cost is constant across all production levels, the productions possibilities frontier is
A straight downward-sloping line
Production possibilities frontier are concave to the origin because
The law of increasing costs
The primary focus of microeconomics is
Individual units within the overall economy
Which of the following statements is positive
New technologies will expand the production possibilities frontier
