Economics Unit 2 Review

Front

What is the law of demand?

Back

As the price of a good decreases, the quantity demanded increases.

Tags

DOK Level 1: Recall

Front

Which of the following best describes market equilibrium? The point where supply exceeds demand., The point where demand exceeds supply., The point where supply equals demand., The point where prices are highest.

Back

The point where supply equals demand.

Tags

DOK Level 1: Recall

Front

Identify the type of market structure characterized by a single seller.

Back

Monopoly

Tags

DOK Level 1: Recall

Front

What is a tariff?

Back

A tax on imports.

Tags

DOK Level 1: Recall

Front

Which of the following is an example of comparative advantage? A country producing all goods more efficiently than another country. A country specializing in the production of goods it can produce at a lower opportunity cost. A country imposing tariffs to protect its industries. A country producing goods at the same cost as another country.

Back

A country specializing in the production of goods it can produce at a lower opportunity cost.

Tags

DOK Level 1: Recall

Front

How does the government typically intervene in trade?

Back

By imposing tariffs and quotas

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DOK Level 1: Recall

Front

If the demand for a product increases, what is likely to happen to the equilibrium price and quantity?

Back

Both price and quantity will increase.

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DOK Level 2: Skill/Concept

Front

Which market structure is characterized by many firms selling similar but not identical products?

Back

Monopolistic competition

Tags

DOK Level 1: Recall

Front

What is the effect of a quota on the supply of a good?

Back

It decreases the supply.

Tags

DOK Level 1: Recall

Front

Calculate the opportunity cost if a country can produce either 10 units of good A or 5 units of good B.

Back

2 units of good A per unit of good B

Tags

DOK Level 2: Skill/Concept