Self Test Review Flashcards
socialists believe that economic equality is only possible if
the public controls the economy
competition and self interest are two important forces in
free market economies
a demand curve illustrates
quantities demanded at each price by consumer
economists measure consumption
in the amount of a good that is bought
advances in technology usually
lowers the cost and increases supply at all price levels
which of the following leads to increase in supply
a decrease in cost of raw materials
If the market equilibrium wage for low-skilled labor is $4.50 per hour, and the minimum wage is set at $5.15, the result is
an excess supply of labor
In any market, quantities supplied and quantities demanded will
be equal at only one price and quantity
minimum wage is an example of
price floor
in many industries, deregulation has resulted in
lower prices for consumers
price discrimination may be found in any market structure except for
perfect competition
A corporation can offer as many shares of stock as are allowed by the
corporate charter
according to the laffer curve
both a high and low tax rate can produce the same revenues
Which of the following actions would the Fed take to fight inflation?
reduce the money supply
The Federal Advisory Committee (FAC)
collects information about economic conditions in each district
