Econ Exam

elasticity clearance sales income

total output.

by keeping prices low by offering promotions by advertising by cultivating brand loyalty by overcoming barriers to entry by developing a specific image

recognizing the relationship between producers and consumers

It can increase interest rates. It can decrease available credit. It can increase the money supply. *It can decrease inflation.*

following a federal regulation. lowering prices for customers. *reducing the risk for consumers.* creating a new or better product.

European Union

*The government can pay for projects to create work.* The government can control new factories to provide jobs. The government can create new farm fields to hire workers. The government can raise taxes to encourage employment.

the amount produced slightly changes with the price. the amount produced greatly changes with the price. the quantity demanded *changes slightly with the price.* the quantity demanded changes greatly with the price.

ceilings

*the first pair of cleats* the second pair of cleats the third pair of cleats the fourth pair of cleats

A country decides to export goods when another country does not. *A country decides to create goods at half the cost of another country.* A country decides to grow wheat and when another country raises cattle. A country decides to invest in technology and another country does not.

*total output of all products and services.* point of equilibrium. nation's real gross national product. excess supply in the market.

immediately copy the successful product. *create many companion products.* try to develop their own products. attempt to improve the product.

to decrease the high rate of failure of new businesses *to encourage the invention and development of products* to stimulate the economy while decreasing unemployment to limit the amount of personal funds used to start the business

*He was a philosopher who promoted the idea of free enterprise.* He was an economist who spoke against the market economy. He was an official who ran an important government agency. He was a producer who operated a factory in Scotland.

*changes in production and demand* changes in employment levels changes in prices changes in the health of an economy

no factory workers under age ten use of central air-conditioning systems a minimum wage for all workers *increased sanitation standards* *fire alarms and sprinkler systems*

Supply and demand meet. *Supply is less than demand.* Supply and demand set prices. *Supply is greater than demand.* Supply and demand set production.

Worthless *Elastic* Inelastic Plentiful

*Advertising coaxes people to buy new products.* Advertising alerts consumers to price reductions. Advertising undermines competition. Advertising informs brand knowledge.

monitoring election results *measuring how much the economy produces* monitoring the popularity of different music groups studying the economy of another country *tracking the unemployment rate*

initially decreases as production increases. *initially increases as production increases.* eventually decreases as production increases. eventually increases as production decreases.

owned by an individual. *owned by the government.* used for private businesses. used to gain personal wealth.

accepting an opportunity to do something else when making an economic decision *giving up an opportunity to do something else when making an economic decision* accepting an opportunity to help accomplish something else when making an economic decision giving up an opportunity to increase prices when making an economic decision

the FDA. the EPA. *the OCC.* the HHS.

*Produce more goods.* Use high-quality resources. Produce more expensive goods. *Use fewer resources.* Produce high-quality goods. Use local resources.

*develop a plan.* mplement a plan. identify the problem. solve the problem.

*a depression.* the start of a depression. a growing recession. the end of a recession.

*increases* decreases. stays the same. disappears.

freedom. *needs.* supply and demand. private property.

to assess product profitability *to aid in production decisions* to offset a poor economy to determine quality and cost

remains the same. decreases. *increases* disappears.

find a way to meet a social need. encourage immediate economic growth. *meet a social need and improve the economy.* find a way to spend budget surpluses.

customers needed to make a profit on a good. consumers who show an interest in a good. *employees needed to manufacture a good* producers who supply the same good.

*study data and patterns.* create and apply automation. improve production and shipping. increase demand and consumption.

always *as needed* as requested never

the demand of the item *the availability of the item* *the cost of the item* *the quality of the item* the popularity of the item

$8 *$9* $10 $30

labor water minerals *petroleum*

wealthy. *is developed.* has high inflation. has little debt.

October 2012. November 2012. February 2013. *March 2013.*

by restricting imports by accelerating production by expanding tax revenues *by decreasing trade barriers*

discouraging consumer borrowing. *decreasing interest rates.* decreasing government spending. decreasing available credit.

Profit is the possible income from producing an additional item. Profit is the price of producing one additional unit of a good. Profit is the additional income gained from selling an additional good. *Profit is the financial gain from business activity minus expenses.*

*individuals have the power to make decisions and are unpredictable.* individuals have the power to make decisions and are predictable. government has the power to make decisions and is unpredictable. government has the power to make decisions and is predictable.

analyzing the climate to see which fruit would grow better. studying the profitability of growing apples versus oranges. researching what competitors are doing. *choosing to grow both fruit varieties or only apples.*

higher unemployment. lower production. *higher production*. increases in taxes.

stock market crash of 1929. *Great Depression of the 1930s*. first and second world wars. economic boom of the 1950s.

Websites can allow consumers to purchase goods online. *Container ships can transport a number of goods at once.* Automation can create goods more cheaply and easily. Airlines can send goods from one place to another.