Download True or False - St. Clair Schools

Chapter 6 & 7
Economics 12
First part of
Jeopardy
is on Chapter 6
This is an
example of
what--- when
the red line
and blue line
intersect:
(Market) Equilibrium
A minimum price for a good or
service:
Price Floor
A product that is popular for a
short period of time:
Fad
The quantity of goods that a firm
has on hand:
Inventory
A price ceiling placed on
apartment rent:
Rent Control
A situation in which consumers
want more of a good or service
than producers are willing to
make available at a particular
price:
Shortage
A minimum price that an
employer can pay a worker for an
hour of labor:
Minimum Wage
Any price quantity not at
equilibrium, when quantity
supplied is not equal to quantity
demanded in a market:
Disequilibrium
A maximum price that can legally
be charged for a good or service:
Price Ceiling
A sudden shortage of a good:
Supply Shock
A system of allocating scarce goods
and services using criteria other than
price:
Rationing
A market in which goods and services
are sold illegally without regard for
government controls on price or
quantity:
Black Market
True or False
Many factors can shift a product’s
demand or supply curve:
True
True or False
The price system responds to
surpluses and shortages by steering
producers and consumers to market
equilibrium:
True
True or False
When either the demand or supply
curve shifts, the equilibrium point
remains constant:
False—the equilibrium also shifts
True or False
Market equilibrium is reached
when surpluses and shortages
are avoided:
True
Price ceilings tend to lead to:
A) Shortages
B) Surpluses
C) Black markets
D) Rationing programs
A) Shortages
The minimum wage is an example of
a:
A) Price floor
B) Rationing program
C) Price ceiling
D) Black market
A) Price Floor
Rationing is thought to be an unwise
economic policy because it is:
A) expensive, time-consuming, and creates
black markets
B) expensive, unfair, and time-consuming
C) unfair, time-consuming, and creates
black markets
D) unfair, expensive, and creates black
markets
D) unfair, expensive, and creates
black markets
Governments sometimes set prices
to:
A) Increase demand for a particular product
B) protect producers and consumers from
dramatic price swings
C) ensure that there will be an adequate
supply of goods for consumers to
purchase
D) decrease the demand for a particular
product
B) protect producers and consumers
from dramatic price swings
Prices coordinate the decisions of
producers and consumers by:
A) Decreasing variability in supply and
demand
B) Increasing variability in supply and
demand
C) Limiting the impact of supply and
demand
D) Balancing the forces of supply and
demand
D) Balancing the forces of supply
and demand
The benefits provided by the price
system include:
A) incentives, flexibility, and externality
B) incentives, choice, and flexibility
C) choice and the availability of public goods
D) information, efficiency, and positive
externality
B) incentives, choice, and flexibility
One of the limitations of the price
system:
A) It’s a failure to assign the cost of public
goods to all consumers
B) the availability of a variety of goods and
services
C) that it encourages the wise use of
resources
D) its ability to deal with change
A) It’s a failure to assign the cost of
public goods to all consumers
Second part of
Jeopardy
is on Chapter 7
Also called producers
(choose the best answer):
A) sellers
B) buyers
C) suppliers
D) demand
A) Sellers
Gives a business exclusive
rights to produce an
invention:
Patent
Two to Five businesses
dominating the marketplace
is known as
a (an) _______.
Oligopoly
Also called consumers:
A) sellers
B) buyers
C) suppliers
D) demand
B) Buyers
This happens when sellers
start undercutting their
competitor’s price:
Price War
An ideal market condition
that includes a large
number of sellers of
identical goods and services
and in which no one seller
controls supply or prices:
Perfect Competition
Laws that encourage
competition in the
marketplace:
Antitrust Laws
A product such as
petroleum or milk that is
considered the same no
matter who produces or
sells it:
Commodity
A government issued right
to operate a business:
License
True or False
Non-Price competition is
competition on a basis other than
price.
True
True or False
The main goal of price
differentiation and Non-Price
competition is to increase profits.
True
A monopoly created by the
government:
A) natural monopoly
B) government monopoly
C) imperfect monopoly
D) perfect monopoly
B) government monopoly
A market structure in which
one seller controls all
production of a good or
service:
Monopoly
Give me an example of a
monopoly---you can’t say
Microsoft:
Answers may vary……..
What sets the price in a
perfectly competitive
market:
Supply and Demand
Yes or No
Can the Federal Trade
Commission order a shut
down of a company that
uses unfair methods of
competition:
No
They may only force them to
change their methods
The effort by sellers to
secretly set production
levels or prices is called:
Collusion
A market that runs most
efficiently when one large
firm supplies all the output:
A) Natural monopoly
B) Technological monopoly
C) Geographical monopoly
D) Government monopoly
A. Natural
Monopoly
True or False
Factors that cause a
products average cost per
unit to fall as output rises is
called economies of scale.
True
True or False
When the Civil War ended
in 1865, many small
companies were forced out
of business or were taken
over by larger companies:
True
An organized system of
price fixing and market
sharing is known as a
______________.
Cartel
Non-Price competition is
competition on a basis
other than _________ .
Price
The most common type of
noncompetitive market in
the United States is a(n):
A) Monopoly
B) Oligopoly
C) Perfect Competition
D) Collusion
B. Oligopoly
Which of the following is an
illegal form of determining
prices:
A) Collusion
B) Price war
C) Substitution
D) Price Leadership
A. Collusion
The expenses a new
business must pay before it
can begin to produce and
sell goods:
Start-up Costs
Last Question:
When a surplus exists in a
market, what tends to fall:
Prices
Last Question:
When two or more
companies join to form a
single firm:
Merger