Economics Midterm

Front

Mr. Smith owns a landscaping business with an associate's degree, a truck, trailer, riding lawnmower, edger, weed eater, and three employees: Mark, Dru, and Ed. Which statement is TRUE?

Back

Mark, Dru, and Ed represent labor.

Front

In our modern economy, most scarce resources are allocated by: majority rule, force, price, authority.

Back

price

Front

A decrease in the price of a particular product will result in:

Back

an increase in the quantity demanded of that product.

Front

According to the law of supply, the higher the price...

Back

The higher the quantity supplied will be.

Front

As more producers enter a market, what will happen to the supply in the market?

Back

Increase

Front

The law of demand states that the price and quantity demanded are...

Back

Inverse

Front

Which market structure has a few sellers that control about 70 percent of the market?

Back

Oligopoly

Front

Products are all identical in what market structure?

Back

Perfect competition

Front

Georgia Power is the only producer of power in the state of Georgia. It is more efficient to allow Georgia Power to supply power to the entire state rather than having multiple competitors. Which type of monopoly does Georgia Power represent?

Back

natural monopoly

Front

Effect of increased producers on digital camera market?

Back

Graph A