Download Economics Benchmark #1 Study Guide Answer the following on a

Economics Benchmark #1 Study Guide
Answer the following on a separate sheet of paper. Use complete sentences.
1. Explain the difference between opportunity costs and tradeoffs –
2. Give an example of opportunity cost = My Example: You can spend $5 on a hamburger of a slice of pizza; you
choose the pizza – the opportunity cost is the hamburger.
a. You provide another example!!
3. Give five examples of the resource land –
4. Explain regulation and deregulation –
5. Regulation/Deregulation – which government intervention helps consumers and which government intervention
helps businesses
6. Explain how an economy becomes more efficient
7. What is the difference between a rational economic decision and an irrational economic decision?
8. What is the difference between a price ceiling and a price floor?
9. Differentiate between an entrepreneur and human capital
10. What is the difference between a laborer and an entrepreneur?
11. What is another name for equilibrium?
12. What is the difference between equilibrium and market clearing price.
13. The U.S. is a market economy, a mixed market economy or a command economy.
14. Explain the difference between a mixed market economy, a market economy and a command economy
15. What is a traditional economy?
16. What does a production possibilities curve show?
17. Give two examples of public goods. What makes them a public good?
18. What is the product market?
19. What is a factor market?
20. Is a factory an example of land, labor, or capital?
21. What is an advantage of a market economy?
22. What is meant by a traditional economy?
23. What is a disadvantage of a market economy?
24. What is an advantage of a command economy?
25. Most countries today are what type of economic system?
26. Why did Communist governments use a command economic system?
27. List two examples of goods that are elastic. What makes them elastic?
28. List two examples of goods that are inelastic. What makes them inelastic?
29. Who pays for public goods?
30. How is productivity defined?
31. How do you calculate productivity
32. What is division of labor
33. Who first developed the concept of specialization and how
34. What is a market failure? Give one example
35. Explain the difference between a complementary good and a substitute.
36. Why would a price ceiling be implemented by the government
37. Why would a price floor be implemented by the government
38. Price ceilings and Price floors offset the law of supply and demand
39. List the demand determinants and give on example of how each can cause a change in demand (a new demand
curve)
40. List the supply determinants and give an example of how each can cause a change in supply (a new supply curve)
Economics Benchmark #1 Study Guide
Answer the following on a separate sheet of paper. Use complete sentences.
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Is an increase in demand a new curve? If so, is it a shift to the left or to the right?
Is an increase in supply a new curve? If so, is it a shift to the left or to the right?
Explain the difference between an change in demand and a change in quantity demanded
Explain the difference between and change in supply and a change in quantity supplied.
Explain the four types of market structures?
Explain the difference between a sole proprietorship, partnership, and a corporation. List one advantage and one
disadvantage of each.
Give an example of perfect competition - what makes this perfect competition
Give an example of monopolistic competition - what makes this monopolistic competition?
Give an example of an oligopoly - what makes this an oligopoly?
Give an example of a monopoly - (natural monopoly) - what makes this a natural monopoly?
What is the factor Market?
What is the product market?
What are the payments for land, labor, capital, entrepreneurs?
What is a market failure?