Unit Test Review

When prices drop below the point where supply and demand meet, it results in

A clothing store has ordered a new supply of jeans for the fall season and wants to sell of the remaining items from the previous spring. What action would the store owner most likely take

Which statement best explains the role of producers in economics

Equilibrium occurs when supply and demand coordinate to

A monopoly is a market that has

Which is the best definition of elasticity in economics

In which way do producers try to differentiate themselves in monopolistic competition

Why is pure competition considered an unsustainable system?

Which best describes how specialized producers decrease their opportunity costs

Excess supply is created when price or move away from the equilibrium point.

Which best describes a producer with an absolute advantage.

When supply is higher then demand prices will

If supply for a product is low but demand is high, what most likely needs to happen to achieve equilibrium?

Use the numbers to place the companies in order of greatest comparative advantage to least comparative advantage in producing small tubes of toothpaste.

Which best explains the law of demand

According to the law of supply, price and quantity move

In the market, actions known as incentives affect

Goods that are considered to be needs tend to be

Example of a positive incentive for consumers

A consumer might respond to a negative incentive because it could be a chance to

Difference between profit n revenue

marginal cost

marginal benefit

To calculate profit, producers subtract their total production cost from their

marginal revenue

Point of Maximum Profit

Specialization

It is better for businesses to have _ opportunity costs as it oftens gives them a comparative advantage

In the US which type of industry is often considered part of an oligopoly

Which helps enable an oligopoly to form within a market?

There are no