Final Review

What is the focus of macroeconomics?

• Economic growth

• Unemployment

• Inflation

• Trade balance

What type of economy does Cuba and North Korea have?

• market economy
• command economy
• mixed economy

Who owns resources in a market economy?

• the government
• businesses
• households
• private individuals

What percent of control does the government have in a socialist/communist economy?

• more than 50%
• less than 50%

How much does private businesses control in free market economies?

• more than 50%
• less than 50%

Outside of the U.S., what color is associated with leftist politics?

• Red
• Blue

What color is assosciated with right leaning politics in countries outside the U.S.?

• Red
• Blue

A primarily market oriented economy has less...?

• government subsidies and support
• government intervention and regulation

What is equilibrium ?

• the combination of price and quantity where there is no economic pressure from surpluses or shortages that would cause price or quantity change.
• At the existing prequantity supplied exceeds tge quantity.
• The quantit demanded is equal ot quantity supplied
• Ultimate scarce source

What is equilibrium price ?

• at the existing prequantity supplied exceeds the quantity demanded.
• A produce whose demand rises when income rises and vice versa
• The price where quantity demanded is euqal to quantity supplied.
• the quantity at which quantity demanded and quantity shipped are equal for a certain price level.