Midterm Review Part 2

Vocab- To rise and fall frequently between one level or thing and another

• Stability

• Neutral

• Fluctuate

• Instability

2. If a product is desired by consumers, it has____________

• Criteria

• Quantity

• Demand

• Supply

3. Which of the following is not an advantage of prices?

• Ease

• Familiarity

• Efficiency

• Neutrality

4. Something that is done or brought about by free choice is:

• Stability

• Force

• Voluntary

• Shortage

5. In which type of economy does the government control the allocation of resources? (Example: North Korea)

• Command

• Traditional

• Mixed

• Market

6. Communism is an example of a/an ____________.

• Mixed economy

• Market economy

• Command economy

• Traditional economy

7. The lowest legal price that can be paid for an item is the__________.

• Target price

• Best deal

• Price floor

• Minimum price

8. Another name for a market economy is_________.

• Totalitarianism

• Capitalism

• Socialism

• Communism

9. The highest legal price that can be charged for a product is the _______.

• Maximum price

• Target price

• Price ceiling

• Price cap

10. The price floor for agricultural product set by the government to stabilize farm prices is the _________.

• Rice price

• Minimum price

• Grain price

• Target price