Micro Vocab Quiz

While trying to train a dog, many owners give doggie treats as motivation. These treats are examples of ________.

• markets

• equilibriums

• incentives

If Verizon was the only company providing cell phone service, it would have a __________

• monopoly

• market

• externality

Which of the following is an example of a subsidy?

• A tax increase on the production of staples

• A government payment to potato farmers to produce less potatoes

• A public park

There were 500 Greebes produced but only 400 were sold. What are the extra 100 Greebes called?

• Benefit

• Surplus

• Shortage

The government of Jonesistan has set a price for greebes that is different from the market clearing price. What is this called?

• price control

• monopoly

• externality

What is the place where supply and demand intersect or meet?

• market equilibrium

• price ceiling

• price floor

Circular Flow can best be described as

• a model which describes how money gains its value

• a model which illustrates how interconnected the economy is

• an illustration of market structures

The demand and supply curves can both shift. What causes these shifts?

• shortage

• market failures

• determinants

A business with a separation of ownership and management is referred to as a

• corporation

• partnership

• sole proprietorship

The government of Jonesesia has set the price of bananas above equilibrium price causing a surplus. What is this called?

• market clearing price

• price floor

• price ceiling