C&E Microeconomics

If the government determines that coffee provides added health benefits, what will happen to the demand for coffee?

• Demand will increase (right shift)

• Demand will decrease (left shift)

• Quantity demanded will increase

• Quantity Demanded will decrease

The chocolate factory received a new machine that speeds up production. What will happen to the supply of chocolate?

• Supply will increase (right shift)

• Supply will decrease (left shift)

• Quantity supplied will increase

• Quantity supplied will decrease

Primary functions of business income include: provide worker compensation, maintain business facilities, pay for other business overhead, and which of these?

• Create a company hierarchical system

• Establish community training programs

• Donate to charitable foundations

• Ensure maximum amount of profit

What type of market structure is dominated by a few large firms, companies sell identical goods, and producers face high barriers to enter the industry?

• Monopoly

• Oligopoly

• Pure Competition

• Monopolistic Competition

Today there are a several different operating systems for personal computers. Every computer needs a single operating system. Selecting the best system can be difficult, since each has a different set of strengths and weaknesses.

Which type of market is associated with these characteristics?

• Monopoly

• Oligopoly

• Pure Competition

• Monopolistic Competition

The Intercoastal Aluminum Company makes aluminum products. It buys a fixed amount of aluminum through yearly contracts. Business in aluminum beverage cans is growing rapidly, while the market for aluminum foil has declined. This year, Intercoastal decides to use more of its aluminum for cans and less for foil.

In this scenario, what is the opportunity cost of producing more cans?

• the price of the total foil being produced

• the profits for the foil that was being produced

• the profits for the total number of cans being produced

• the price of the extra cans now being produced

Which statement BEST explains the importance of economic decision making when scarcity is a factor?

• Each choice results in an opportunity cost.

• Economic decisions are made by the majority.

• Economic decisions provide access to more resources

• Each choice must be made with incomplete information.

Land, Labor, Capital, and ______________ are the four factors of production.

• Entrepreneurship

• Consumer Demand

• Regulation

• Urban Growth

In which market structure do many producers sell products that are identical to one another?

• Monopoly

• Monopolistic Competition

• Oligopoly

• Pure Competition

On a supply & demand graph, what do the X and Y axis represent?

• Price & Quantity

• Efficiency & Quality

• Efficiency & Resources

• Resources & Price