← Micro Test
5 Written Questions
5 Matching Questions
- The price System
- Price Controls
- Competition and Allocation
- Interaction of supply and demand
- a People always want more than can be produced. They cannot always have everything they want. What must economies do to solce this problem of scarcity, and what are some of the different approaches an economy can take?
- b A politician is quoted as saying, "Rents are too high for low income families in our community. We need a city ordincance that controls the amount of money landlords can charge these people for rent." Based on microeconomic thinking, what would such an ordinance qualify as, and what is your response to the suggestion?
- c Describe the concepts of "mergers" and "downsizing". What is the impact on the following groups.
c. The market
- d What is the goal of any market with regard to the supply of products and the demand for them? SPECIFICALLY, what causes a shortage or a surplus in a market, and how can this be mediated?
- e In the United States, a language of prices is used for communication between buyers and sellers. Discuss three benefits of a system like this.
5 Multiple Choice Questions
- Automation is a type of technological change that uses robots and computers to do jobgs that were previously held by people. Many people believe this technology reduces emplyment opportunities for workers. Address this dilemma by discussing both why it might be good for the business to automate and what the workers might do about their situation.
- Briefly describe the income effect and its impact on the AMerican consumer. What economic ability of consumers does it specifically impact, and is it good or bad? Explain.
- A nation has recently discovered a new and more efficient way of using food sraps as an energy source. What might happen in this nation with regard to its ability to be productive?
- sometimes we encounter things we can enjoy without having to pay for them. For example, we could attend a "free concert at the local park" that is offered to anyone and everyone for the taking. Economically speaking, is this activity, or any for that matter, really free?
- What are stocks? What is their purpose? How do they help or hurt the economy? The businesses? The employees?
5 True/False Questions
Investments → What are the "levels of risk" of investments that exist today? Give some examples of investments and explain their risk and explain the importance of investment to consumers
Elasticit of demand → Why is it that when the price of beef changes, people significantly change the amount of beef they purchase, but when the price of water changes the amount of water used does not change significantly?
The stock Market → In the United States, a language of prices is used for communication between buyers and sellers. There are three drawbacks to this system; explain two of them and give AN EXAMPLE FOR EACH.
Value and Utility → What are the "levels of risk" of investments that exist today? Give some examples of investments and explain their risk and explain the importance of investment to consumers
Incentives/Disincentives → What are the "levels of risk" of investments that exist today? Give some examples of investments and explain their risk and explain the importance of investment to consumers