Download Unit 2 Review Questions A

Unit 2
Topics 1 & 2
1. What is microeconomics?
2. What are examples of monetary flow in the CFD?
3. What are examples of physical flow in the CFD?
4. What type of transactions take place in the factor market? Give an example.
5. What type of transactions take place in the product market? Give an example.
6. In a market economy, who owns all productive resources?
7. What role does money play in circular flow?
8. Explain the role of the government in the CFD.
9. Draw the government onto the diagram on your study guide.
10. Write a paragraph describing the flow of resources, products and money through a free market economy.
11. What is demand?
12. What is the law of demand?
13. What type of relationship exists between price and quantity demanded? (both names)
14. Draw a demand schedule & a demand curve for a product. Label the graph correctly!
15. What is supply?
16. What is the law of supply?
17. What type of relationship exists between price and quantity supplied? (both names)
18. Draw a supply schedule and a supply curve for a product. Label the graph correctly.
19. Draw a combined supply and demand schedule and curve. Labe the graph correctly.
20. The point where supply and demand curves intersect is called what? (both names)
21. What does this point represent?
Topic 3
1. Shifts in supply or shifts in demand will cause what to change?
2. Why does demand shift? 5 things (list and explain)
3. Why does supply shifts? 5 things (list and explain)
4. Draw a supply & demand curve, shift demand to the right and show what happened to price & quantity.
5. Draw a supply & demand curve, shift demand to the left and show what happened to price and quantity.
6. Draw a supply & demand curve, shift supply to the right and show what happened to price and quantity.
7. Draw a supply & demand curve, shift supply to the left and show what happened to price and quantity.
8. What does disequilibrium mean?
9. What is a surplus? What causes a surplus?
10. What is a shortage? What causes a shortage?
11. What are price ceilings? Do they cause shortages or surpluses?
12. What are price floors? Do they cause shortages or surpluses?
13. Draw a graph illustrating a price floor & a price ceiling.
14. What is elasticity of demand/supply?
15. What does it mean if a product has elastic demand? What does the graph look like?
16. What does it mean if a product has inelastic demand? What does the graph look like?
17. What does it mean if a product has elastic supply? What does the graph look like?
18. What does it mean if a product has inelastic supply? What does the graph look like?
Topic 4
1. What are the three types of business organizations?
2. Describe a sole proprietorship.
3. What are the benefits and disadvantages of a sole proprietorship?
4. Describe a partnership.
5. What are the benefits and disadvantages of a partnership?
6. Describe a corporation.
7. What are the benefits and disadvantages of a corporation?
8. What is a market structure?
9. What factors determine which type of market a product will have?
10. Describe monopolies? Give an example.
11. What causes monopolies?
12. What problems do monopolies cause? (2)
13. Describe pure or perfect competition? Give an example.
14. What causes pure competition?
15. Why are monopolies called price makers and pure competition called price takers?
16. Describe monopolistic competition? Give an example.
17. What causes monopolistic competition?
18. Why do businesses in a monopolistic competition market have some control over price?
19. Describe oligopoly. Give an example.
20. What causes oligopolies?
21. What problems are caused by oligopolies?