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- Why are all goods and services scarce? a. Some goods have a greater opportunity cost than others

- Why are all goods and services scarce? a. Some goods have a greater opportunity cost than others b. All people have unlimited wants, but limited resources to satisfy those wants c. Some things are needs and others are wants d. Some people want to have more goods than others.

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- Why are all goods and services scarce? a. Some goods have a greater opportunity cost than others

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  1. - Why are all goods and services scarce? a. Some goods have a greater opportunity cost than others b. All people have unlimited wants, but limited resources to satisfy those wants c. Some things are needs and others are wants d. Some people want to have more goods than others Economics Daily Ten #1 - Why are all goods and services scarce? a. Some goods have a greater opportunity cost than others b. All people have unlimited wants, but limited resources to satisfy those wants c. Some things are needs and others are wants d. Some people want to have more goods than others unlimited Explanation: scarcity is defined as ____________ wants given _____________ resources, no one can have an unlimited amount (time, rest, vacation, stuff, etc) of any given thing. limited SSEF1 a

  2. - An individual decides to pay $8 to see a movie instead of buying an $8 meal. What is the opportunity cost of the movie? a. the satisfaction missed by not eating the meal b. the $8 paid to see the movie c. the time spent watching the movie d. the satisfaction received by going to the movie Economics Daily Ten #2 - An individual decides to pay $8 to see a movie instead of buying an $8 meal. What is the opportunity cost of the movie? a. the satisfaction missed by not eating the meal b. the $8 paid to see the movie c. the time spent watching the movie d. the satisfaction received by going to the movie highest Explanation: Opportunity cost measures the cost of the ____________ valued alternative forgone. SSEF1 b

  3. Economics Daily Ten #3 • Study the graph below and use it to answer the following question. • The probable impact of corporate downsizing is a movement from • point X to • A. point M • B. point N • C. point O • D. point P • The probable impact of corporate downsizing is a movement from • point X to • A. point M • B. point N • C. point O • D. point P Explanation: The PPF model shows the production possibilities between two goods. It is a visual illustration of ______________________. opportunity cost

  4. Economics Daily Ten #4 • Study the model below and use it to answer the following question. • The entry of women into the American labor force during World War II was one • important reason for A. a shift from curve CD to point G B. a shift from curve EF to curve CD C. a movement from point Y to point Z D. a shift from curve CD to curve EF A. a shift from curve CD to point G B. a shift from curve EF to curve CD C. a movement from point Y to point Z D. a shift from curve CD to curve EF labor Explanation: An increase in the factor of production of __________ would increase the work force and ability to produce at a greater level.

  5. - An economy where the three economic questions are based on decisions made by consumers and businesses, with government intervention is an example of a _____________ economic system. a. Market b. Mixed c. Traditional d. Command Economics Daily Ten #1 - An economy where the three economic questions are based on decisions made by consumers and businesses, with government intervention is an example of a _____________ economic system. a. Market b. Mixed c. Traditional d. Command Explanation: – ____________ economies, such as the U.S., rely on ______________ and _________ to answer the three economic questions. The government plays the role of protector, overseer and regulator of the economy. Mixed Consumers Firms

  6. - Fill in the blanks for each of the following: QB Peyton Manning’s high salary, vs. a cashier’s low salary, represents economic _________. Moving from the personal computer to handheld devices represents an economic _________. “Today, I know Chevron will have gas” represents economic ___________. GM receiving a government bailout represents economic ____________. Increasing the production of goods, services and jobs would represent economic ________. Word Bank: innovation, predictability, growth, security, equity. Economics Daily Ten #2 equity innovation predictability security growth

  7. Economics Daily Ten #3 • Which of the following is MOST important for economic growth? a. an efficient use of resources b. ample tax revenues c. availability of resources d. a large labor force • In the American economy, the goal of economic equity is MOST connected with a. restoring laissez-faire capitalism b. creating limits on corporate profits c. subsidizing businesses that would otherwise fail d. giving participants a fair chance to succeed • In the American economy, the goal of economic equity is MOST connected with a. restoring laissez-faire capitalism b. creating limits on corporate profits c. subsidizing businesses that would otherwise fail d. giving participants a fair chance to succeed • Which of the following is MOST important for economic growth? a. an efficient use of resources b. ample tax revenues c. availability of resources d. a large labor force • In the American economy, the goal of economic equity is MOST connected with a. restoring laissez-faire capitalism b. creating limits on corporate profits c. subsidizing businesses that would otherwise fail d. giving participants a fair chance to succeed efficiency Explanation: economic _____________ allows society to maximize resources and increase production. Explanation: In the U.S. economic equity refers to a ________ opportunity for obtaining jobs and being paid based on your _____________. fair skills

  8. Economics Daily Ten #4 • In a market economy, how are the basic economic questions of what, how, and for whom to produce answered? a. by using a nation’s social customs and traditions b. by using a combination of traditional and command economies c. by the individuals and firms in the nation’s marketplace d. by the nation’s federal and/or local governments • In a market economy, how are the basic economic questions of what, how, and for whom to produce answered? a. by using a nation’s social customs and traditions b. by using a combination of traditional and command economies c. by the individuals and firms in the nation’s marketplace d. by the nation’s federal and/or local governments • A market economy has an advantage over a traditional economy in that the market economy a. controls prices and wages b. fixes incomes of consumers c. limits the profits of large corporations d. adjusts to consumer demands over time • In a market economy, how are the basic economic questions of what, how, and for whom to produce answered? a. by using a nation’s social customs and traditions b. by using a combination of traditional and command economies c. by the individuals and firms in the nation’s marketplace d. by the nation’s federal and/or local governments • A market economy has an advantage over a traditional economy in that the market economy a. controls prices and wages b. fixes incomes of consumers c. limits the profits of large corporations d. adjusts to consumer demands over time Explanation: a market economy answers the three economic questions through the decisions of ___________ and _____________. Consumer purchases indicate to the firm what should produced. Individuals Firms

  9. Economics Daily Ten #5 • Study the model below and use it to answer the following question. The flow of goods and services to consumers is illustrated by A. 4 to 2 B. 8 to 6 C. 2 to 5 D. 6 to 1 The flow of goods and services to consumers is illustrated by A. 4 to 2 B. 8 to 6 C. 2 to 5 D. 6 to 1 Outer Inner Explain: ____________circles represent the flow of money,___________ circles represent the flow of inputs and outputs.

  10. Economics Daily Ten #6 1. What is the function of an economic system? a. to make sure all people have equal access to goods b. to organize and distribute scarce resources c. to give all producers the same access to consumers d. to make sure people are paid for their labor 2. You are an entrepreneur with an innovative idea for a new business. In which kind of economy would you have the most opportunity to try to achieve success? a. market economy b. command economy c. traditional economy d. economy of scale 1. What is the function of an economic system? a. to make sure all people have equal access to goods b. to organize and distribute scarce resources c. to give all producers the same access to consumers d. to make sure people are paid for their labor 2. You are an entrepreneur with an innovative idea for a new business. In which kind of economy would you have the most opportunity to try to achieve success? a. market economy b. command economy c. traditional economy d. economy of scale 1. What is the function of an economic system? a. to make sure all people have equal access to goods b. to organize and distribute scarce resources c. to give all producers the same access to consumers d. to make sure people are paid for their labor 2. You are an entrepreneur with an innovative idea for a new business. In which kind of economy would you have the most opportunity to try to achieve success? a. market economy b. command economy c. traditional economy d. economy of scale market Explanation: – a _______________ economy would offer the greatest degree of economic freedom.

  11. Economics Daily Ten #7 What is the purpose of competition in a market economy? a. to create centralized control in the marketplace of one business b. to cause producers to attempt to put each other out of business c. to cause buyers and sellers to be generous about spending their money d. to act as a motivating force behind the free market What is the purpose of competition in a market economy? a. to create centralized control in the marketplace of one business b. to cause producers to attempt to put each other out of business c. to cause buyers and sellers to be generous about spending their money d. to act as a motivating force behind the free market Which describes the metaphor of the invisible hand? a. an economy where the 3 economic questions are answered by the government b. an influential force where the self-interests of households and firms determine the three economic questions. c. an economy where tradition, ritual and custom determine the factors of production d. a tangible force behind a modified free enterprise Which describes the metaphor of the invisible hand? a. an economy where the 3 economic questions are answered by the government b. an influential force where the self-interests of households and firms determine the three economic questions. c. an economy where tradition, ritual and custom determine the factors of production d. a tangible force behind a modified free enterprise

  12. Economics Daily Ten #8 Properly label each component of the circular flow model, indicating the two markets, two entities and what is represented by each arrow. Business Revenue Consumer Spending Consumer Goods/Services Outputs Inputs Land, Labor, Capital Payments to Households Income to Households

  13. Economics Daily Ten #9 • The idea that producers make goods that consumers like and are willing to pay for is a principle of which of the following economic systems? • Traditional • Command • Market • Socialism • The idea that producers make goods that consumers like and are willing to pay for is a principle of which of the following economic systems? • Traditional • Command • Market • Socialism 2. In what kind of economy does the government own the means of production? a. Traditional b. Market c. Command d. Mixed • The idea that producers make goods that consumers like and are willing to pay for is a principle of which of the following economic systems? • Traditional • Command • Market • Socialism 2. In what kind of economy does the government own the means of production? a. Traditional b. Market c. Command d. Mixed

  14. Economics Daily Ten #10 • Kim works on an automobile assembly line. Kim’s job illustrates a production process that relies on a. autonomous work groups b. team decision making c. quality circles d. division of labor • Kim works on an automobile assembly line. Kim’s job illustrates a production process that relies on a. autonomous work groups b. team decision making c. quality circles d. division of labor Division of labor specialization Explanation: – _______________ is another term for_________________, which focuses on the efficient use of resources • If a nation encourages entrepreneurship, then which of the following is likely to occur? a. very little change in overall production of goods and services b. the development of many new products and process methods c. fewer applications to the United States Patent Office d. a decline in the number of new businesses started • If a nation encourages entrepreneurship, then which of the following is likely to occur? a. very little change in overall production of goods and services b. the development of many new products and process methods c. fewer applications to the United States Patent Office d. a decline in the number of new businesses started

  15. Economics Daily Ten #4 1. Why does a free market economy need some government intervention? a. so that the government has total control over factor resources b. to ensure the government has the freedom to tax as necessary c. to make sure that the government can fulfill its needs for goods and services d. to provide for things that the marketplace does not address (i.e. market failures) 2. In what kind of economy does the government make all the decisions? a. socialist b. laissez faire c. centrally planned, or command economy d. free enterprise Explanation: (d) – most modern economies are mixed, or have some government involvement to regulate, protect and oversee. Explanation: Explanation: (c) – command economies are controlled by a dictator, or small group of economic policy makers. Explanation:

  16. - An efficient economy is one that Economics Daily Ten #2 a. Has very few people who do not work for a living b. Makes less use of all its goods and services c. Uses the factors of production wisely and not wastefully d. Makes the least costly use of it resources Explanation: (c) – efficiency is using resources wisely to produce goods and services Explanation:

  17. Economics Daily Ten #7 1. The upper line of monetary flow, marked “1” shows the a. factor market b. product market c. supply and demand d. production possibilities frontier 2. The lower half, marked “2” represents the a. factor market b. product market c. supply and demand d. production possibilities frontier 3. Which of the following is not flowing from the household to the firm in the factor market? a. Land b. Labor c. Capital d. Goods

  18. Economics Daily Ten #7 1. The upper line of monetary flow, marked “1” shows the a. factor market b. product market c. supply and demand d. production possibilities frontier 2. The lower half, marked “2” represents the a. factor market b. product market c. supply and demand d. production possibilities frontier 3. Which of the following is not flowing from the household to the firm in the factor market? a. Land b. Labor c. Capital d. Goods

  19. Economics Daily Ten #7 1. The upper line of monetary flow, marked “1” shows the a. factor market b. product market c. supply and demand d. production possibilities frontier 2. The lower half, marked “2” represents the a. factor market b. product market c. supply and demand d. production possibilities frontier 3. Which of the following is not flowing from the household to the firm in the factor market? a. Land b. Labor c. Capital d. Goods

  20. Economics Daily Ten #7 1. The upper line of monetary flow, marked “1” shows the a. factor market b. product market c. supply and demand d. production possibilities frontier 2. The lower half, marked “2” represents the a. factor market b. product market c. supply and demand d. production possibilities frontier 3. Which of the following is not flowing from the household to the firm in the factor market? a. Land b. Labor c. Capital d. Goods

  21. Economics Daily Ten #1 Buyers and sellers willingly engage in a transaction that benefits both parties because of which concept in economics? a. economic equity b. communism c. voluntary exchange d. property rights Buyers and sellers willingly engage in a transaction that benefits both parties because of which concept in economics? a. economic equity b. communism c. voluntary exchange d. property rights Explanation: ____________________is the free trade of goods and services and the gains made from trade. Voluntary Exchange One of the strongest incentives in the market economy is to make money, this is illustrated by the concept of a. property rights b. profit motive c. voluntary exchange d. division of labor One of the strongest incentives in the market economy is to make money, this is illustrated by the concept of a. property rights b. profit motive c. voluntary exchange d. division of labor Profit Motive Explanation: ___________________is the motivating factor behind every firm.

  22. Economics Daily Ten # 2 Someone who does not pay for a public good/service, but benefits from it is a a. free-loader b. free-rider c. free-person d. free-bird Someone who does not pay for a public good/service, but benefits from it is a a. free-loader b. free-rider c. free-person d. free-bird free-rider Explanation: a _______________is someone who consumes public goods, but does not contribute to the program. A situation in which the market on its own does not distribute resources efficiently a. market externality b. market production c. market failure d. market deficit A situation in which the market on its own does not distribute resources efficiently a. market externality b. market production c. market failure d. market deficit market failures Explanation: __________________ occur as a result of an inability for the market to answer the three economic questions on its own.

  23. Economics Daily Ten # 3 Exposure to second hand smoke would be an example of a a. positive externality b. negative externality c. negative perspective d. positive incentive Exposure to second hand smoke would be an example of a a. positive externality b. negative externality c. negative perspective d. positive incentive Externalities Explanation: _________________ are a cost or benefit incurred by a party who was not directly involved in the action causing the cost or benefit. The primary way to improve productivity is a. reduced work ethic b. negative incentives c. improved technology d. removal of subsidies from the private sector The primary way to improve productivity is a. reduced work ethic b. negative incentives c. improved technology d. removal of subsidies from the private sector Explanation: _______________ plays a major role in a society’s productivity, allowing more _______________ to be created with less _______________. Technology inputs outputs

  24. Economics Daily Ten # 11 Which of the following is a role of the government in a modified free enterprise? a. ensure that businesses follow certain environmental protection rules b. ensuring that business obtain market power and determine price fixing c. ensuring that the market is completely deregulated in order to allow competition to flourish d. To actively dismiss the public interest for the concerns of the firms Explanation: (a) – government plays the role of informer, protector and regulator of the U.S. economy The primary way to improve productivity is a. reduced work ethic b. negative incentives c. improved technology d. removal of subsidies from the private sector Explanation: (c) – technology plays a major role in a society’s productivity and growth.

  25. Economics Daily Ten #4 Price • Why is the demand curve downward sloping? a. Because of the positive relationship between p and qd. b. Because of the inverse relationship between price and qd. c. Because of the direct relationship between price and qd. d. Because of negative relationship between supply and demand. • Why is the demand curve downward sloping? a. Because of the positive relationship between p and qd. b. Because of the inverse relationship between price and qd. c. Because of the direct relationship between price and qd. d. Because of negative relationship between supply and demand. Quantity Demanded price inverse Explanation: The ________________ relationship between ________ and ____________________ causes a downward sloping curve quantity demanded P Q P Q

  26. Economics Daily Ten #2 Price Price P1 P2 Q1 Q2 Quantity Demanded Quantity Demanded • Respectively, what do the above graphs illustrate? a. A change in quantity demanded/a change in demand b. A change in demand/a change in demand c. A change in quantity demanded/a change in quantity demanded d. A change in demand/a change in quantity demanded • Respectively, what do the above graphs illustrate? a. A change in quantity demanded/a change in demand b. A change in demand/a change in demand c. A change in quantity demanded/a change in quantity demanded d. A change in demand/a change in quantity demanded Explanation: A change in price causes movement along the curve, a change in the determinants of demand cause a shift.

  27. Economics Daily Ten #3 Test Your Understanding Each of the following represents an analysis of the demand for the American automobile industry • In each of the following cases, state whether (1) there is a movement along the demand curve for American automobiles, (2) the demand curve for American automobiles will shift to the right, (3) the demand curve for American automobiles will shift to the left 1. The price of gasoline rises ________________________ 2. The price of American automobiles rises ________________________ 3. The price of Japanese automobiles rises ________________________ 4. Buyers' incomes fall ________________________ 5. Buyers find that American automobiles are of higher quality __________________ 6. Mexican automobile buyers are now able to buy American automobiles _____________________ 7. Buyers expect that the price of American automobiles will drop next year _____________________ 8. The price of American automobiles drop ____________________ (3) – Shift to the left (1) – Movement along (2) – Shift to the right (3) – Shift to the left (2) – Shift to the right (2) – Shift to the right (3) – Shift to the left (1) – Movement along

  28. Economics Daily Ten #4 Quantity Demanded Movement Quantity Demanded Movement Demand Shift to the right Demand Shift to the right Demand Shift to the right Demand Shift to the left Demand Shift to the left

  29. Economics Daily Ten # 7 Inelastic Time Horizon Complete the following chart: Elastic Availability of Substitutes Necessity vs. Luxury/Relative Importance Elastic Necessity vs. Luxury/Relative Importance Inelastic Calculate the following using the midpoint method. 300 Q2 – Q1__ ________ (Q2 + Q1)/2 = ____________ = ______ = ______ P2 – P1__ ________ (P2 + P1)/2 1.2 1.4 250 30 .86 50 35 Elastic or Inelastic ___________ Elastic 20 100 400

  30. Economics Daily Ten # 8 Elastic Time Horizon Complete the following chart: Inelastic Necessity vs. Luxury Elastic Availability of Close Substitutes Inelastic Relative Importance Calculate the following using the midpoint method. 40 Q2 – Q1__ ________ (Q2 + Q1)/2 = ____________ = ______ = ______ P2 – P1__ ________ (P2 + P1)/2 .5 .75 80 5 .67 7.5 Elastic or Inelastic ___________ Inelastic

  31. Economics Daily Ten #3 Price 1. Which of the following is a true statement? a. P1 to P2 represents an increase in price and decrease in qd. b. P1 to P2 represents a shift in the demand curve. c. P1 to P2 represents a positive relationship between price and qd. d. P1 to P2 represents a drop in price and an increase in qd. P1 P2 Q1 Q2 Quantity Demanded Explanation: (d) Price falls, quantity demanded increases

  32. Economics Daily Ten #4 Price • Study the model below and use it to answer the following question. D2 D1 Quantity Demanded Which situation would cause the shift of the demand curve to shift from D1 to D2? A – The economy is experiencing a recession and people’s overall income reduces. B – Prices drop for the item being analyzed on the graph. C – Population in the area analyzed by the graph increases by 80%. D – Prices increase for the item being analyzed on the graph. Explain: List Determinants of Demand: Explain: List Determinants of Demand: (c) Income, Tastes, Price of Related Products, Expectations, Number of Buyers

  33. Economics Daily Ten # 6 Ceteris Paribus means a. all things changing b. all things remaining constant c. all things constantly changing d. all things remaining changed Explanation: (b) – The demand curve remains fixed Ceteris Paribus (all other things constant). A change in the price of an item being analyzed causes (2 answers apply) a. a shift in the demand curve b. a change in quantity demanded c. a change in supply d. a change in demand e. movement along the demand curve Explanation: (b and e) – price (of an item in study) does not change “demand”.

  34. Economics Daily Ten #2 1. Which of the following statements exhibit demand in economics? a. I love the new Infiniti G37. b. I want to travel to Europe next year, but I’m dead broke. c. I want to build a deck, so I’m saving the money and I’m going to buy it this summer. d. I really want to buy a new pair of UGGs, I have the money, but they are too expensive for me to buy. Explanation: (c) Demand is the desire, willingness and ability to consume a good or service.

  35. Economics Daily Ten #1 Price Price P QS P QS S1 S2 Quantity Supplied Quantity Supplied 1. Why is the supply curve upward sloping? a. Because of the positive relationship between p and qd. b. Because of the inverse relationship between price and qd. c. Because of the direct relationship between price and qs. d. Because of negative relationship between supply and demand. 1. Why is the supply curve upward sloping? a. Because of the positive relationship between p and qd. b. Because of the inverse relationship between price and qd. c. Because of the direct relationship between price and qs. d. Because of negative relationship between supply and demand. 2. Which of the following could cause a shift in the supply curve? a. The government places an excise tax on the suppliers of the product. b. The price of the good goes up because demand for the good increases. c. The number of sellers reduces. d. The government provides an incentive to produce through increased subsidies. 2. Which of the following could cause a shift in the supply curve? a. The government places an excise tax on the suppliers of the product. b. The price of the good goes up because demand for the good increases. c. The number of sellers reduces. d. The government provides an incentive to produce through increased subsidies.

  36. Economics Daily Ten # 2 Taxes/Regulation Left Complete the following chart: Number of Sellers Right Future Expectation of Prices Left Subsidies Left Technology Right Input Costs Left

  37. Economics Daily Ten #3 1. Draw 4 supply curves to illustrate the likely market response for the auto industry: • Technological innovations advance the production process. • The U.S. government removes subsidies in the auto industry. • Automakers expect increased willingness to purchase in a month. • The U.S. government increases taxation, causing several firms to drop out of the market Price Price S2 S1 S1 S2 QS QS

  38. Economics Daily Ten #4 • Study the model below and use it to answer the following question. QS – QD 20 – 80 = - 60 1. What is the Pe and Qe respectively at the equilibrium point? 2. At $3 there would be a _____ of _____ quantity. 50, 6 6, 50 5, 60 60, 5 50, 6 6, 50 5, 60 60, 5 Shortage, 50 Shortage, 60 Surplus, 50 Surplus, 60 Shortage, 50 Shortage, 60 Surplus, 50 Surplus, 60

  39. Economics Daily Ten #5 • Study the model below and use it to answer the following question. Suppose the government set a price ceiling at $2. What would be the quantity demanded and the quantity supplied? ______________ The natural market equilibrium is $_______ In this case the price ceiling is ______ the equilibrium point. There would be a shortage/surplus of ____________ QD = 40 QS = 20 3 below Shortage - 20

  40. Economics Daily Ten #6 • Using a properly labeled graph, illustrate the below current headlines • iPhone 4S pre-orders sell out in first 12 hours of availability • Analyst predicts Toyota's sales down 17%, due to past recall • Worst Texas Drought in 44 Years Damaging Wheat Crop, Reducing Cattle Herds • Finally!: Used-car prices are falling due to reduced demand S D

  41. Economics Daily Ten #6 • Which of the following would most likely be fixed costs for a firm? • Salaried workers (someone that is paid a monthly amount based on an annual salary, ie. $50,000) • Lease on the building (paid monthly spread out over 10, 20, 30 years, etc.) • Hourly workers (someone that is paid by the hour, i.e. $13.00 an hour) • Electricity (cost to power a building, office, etc.) Explanation: (a, b) fixed costs do not change based on production. • 2. Which of the following would most likely be variable costs for a firm? • Salaried workers • Lease on the building • Hourly workers • Electricity Explanation: (c, d) variable costs change based on production.

  42. Economics Daily Ten #4 • Study the model below and use it to answer the following question. Of the following, which situation would cause the shift of the supply curve from S1 to S2? The government reduces subsidies to wheat farmers. New fertilizers increase wheat crop yields. Firms exit the wheat industry. Drought reduces industry output by 25%. Explanation: (b) Technology, prices reduced, quantity increased

  43. Economics Daily Ten #1 Corporation Characterize the following as sole proprietor, partnership or corporation. • Google, inc. • Cohen and Cohen Law Firm • John Doe’s Island Landscaping Partnership Sole Proprietor • Which of the following is not an advantage of a sole proprietorship? • Easy to start up • Sole receiver of profit • Full control of decision-making • Unlimited personal liability • Relatively few regulations • Which of the following is not an advantage of a sole proprietorship? • Easy to start up • Sole receiver of profit • Full control of decision-making • Unlimited personal liability • Relatively few regulations

  44. Economics Daily Ten #2 Conglomerate Identify the proper term for each of the following: Vertical Merger Horizontal Merger Multinational Cooperative (Coop) Business Franchise Non-Profit Labor Union

  45. Economics Daily Ten #3 • Which of the following two are disadvantages of a partnership? • Easy to start up • Shared decision making and specialization • Larger pool of capital • Potential for conflict • Unlimited liability • Which of the following two are disadvantages of a partnership? • Easy to start up • Shared decision making and specialization • Larger pool of capital • Potential for conflict • Unlimited liability • Which of the following two are disadvantages of a corporation? • Limited liability • More potential for growth • Double taxation • Loss of control • Long life • Which of the following two are disadvantages of a corporation? • Limited liability • More potential for growth • Double taxation • Loss of control • Long life

  46. Economics Daily Ten #4 1. Which of the following sets are arranged from most competitive to least competitive? a. absolute competition, monopolistic competition, imperfect competition b. perfect competition, oligopoly, monopolistic competition, monopoly c. perfect competition, monopolistic competition, oligopoly, monopoly d. oligopoly, perfect competition, monopolistic competition, monopoly e. absolute competition, imperfect competition, monopolistic competition, monopoly 1. Which of the following sets are arranged from most competitive to least competitive? a. absolute competition, monopolistic competition, imperfect competition b. perfect competition, oligopoly, monopolistic competition, monopoly c. perfect competition, monopolistic competition, oligopoly, monopoly d. oligopoly, perfect competition, monopolistic competition, monopoly e. absolute competition, imperfect competition, monopolistic competition, monopoly 2. Describe the following as perfect competition, monopolistic competition, monopoly or oligopolies. Fast food companies Automobile industry Agricultural industry National Football League Monopolistic competition Oligopoly Perfect competition Monopoly

  47. Economics Daily Ten #5 Perfect Competition Identify the proper term for each of the following: Monopolistic Competition Monopoly Oligopoly Commodity Market Power Price Discrimination Collusion

  48. Economics Daily Ten #6 1. Price discrimination occurs when one company a. offers the same price b. offers one price to one individual and another price to another individual c. offer a price set by a government price ceiling d. offers a price set by a government price floor 1. Price discrimination occurs when one company a. offers the same price b. offers one price to one individual and another price to another individual c. offer a price set by a government price ceiling d. offers a price set by a government price floor • The level of difficulty incurred by a firm when entering a market is a • Business Roadblock • Market Wall • Barrier to Entry • Power of the Market • The level of difficulty incurred by a firm when entering a market is a • Business Roadblock • Market Wall • Barrier to Entry • Power of the Market

  49. Economics Daily Ten #7 Which of the following would not be considered Price discrimination? Kids eat free Senior citizen discount at a restaurant Student discount at the movies 10% discount at Target Which of the following would not be considered Price discrimination? • Kids eat free • Senior citizen discount at a restaurant • Student discount at the movies • 10% discount at Target • Which of the four forms of nonprice competition would reflect the following? • A new shape for a bottle of coke • “Be our guest” Disney motto • Ralph Lauren vs. Wal-mart brand clothing • A fast food restaurant near I-95 Physical Characteristics Service Level Advertising, Image, or Status Location

  50. Economics Daily Ten #1 1. Classify the following components of GDP Dell opens a new factory in Seattle, WA. _______________________ Congress approves the purchase of a new fleet of Boeing Jets. ______________________ A family buys a new Honda Accord. __________________________ China imports soybean from the U.S. _________________________ Investment (I) Government (G) Consumption (C) Net Exports (NX) 2. All of the following are accurate regarding the definition of GDP EXCEPT The market value Of all final goods and services Produced by a country’s companies, domestically and abroad In a given period of time 2. All of the following are accurate regarding the definition of GDP EXCEPT The market value Of all final goods and services Produced by a country’s companies, domestically and abroad In a given period of time

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