1. Chapter 6 & 7 Economics 12

2. First part of Jeopardy is on Chapter 6

3. This is an example of what--- when the red line and blue line intersect:

4. (Market) Equilibrium

5. A minimum price for a good or service:

6. Price Floor

7. A product that is popular for a short period of time:

8. Fad

9. The quantity of goods that a firm has on hand:

10. Inventory

11. A price ceiling placed on apartment rent:

12. Rent Control

13. A situation in which consumers want more of a good or service than producers are willing to make available at a particular price:

14. Shortage

15. A minimum price that an employer can pay a worker for an hour of labor:

16. Minimum Wage

17. Any price quantity not at equilibrium, when quantity supplied is not equal to quantity demanded in a market:

18. Disequilibrium

19. A maximum price that can legally be charged for a good or service:

20. Price Ceiling

21. A sudden shortage of a good:

22. Supply Shock

23. A system of allocating scarce goods and services using criteria other than price:

24. Rationing

25. A market in which goods and services are sold illegally without regard for government controls on price or quantity:

26. Black Market

27. True or False Many factors can shift a product’s demand or supply curve:

28. True

29. True or False The price system responds to surpluses and shortages by steering producers and consumers to market equilibrium:

30. True

31. True or False When either the demand or supply curve shifts, the equilibrium point remains constant:

32. False—the equilibrium also shifts

33. True or False Market equilibrium is reached when surpluses and shortages are avoided:

34. True

35. Price ceilings tend to lead to: A) Shortages B) Surpluses C) Black markets D) Rationing programs

36. A) Shortages

37. The minimum wage is an example of a: A) Price floor B) Rationing program C) Price ceiling D) Black market

38. A) Price Floor

39. Rationing is thought to be an unwise economic policy because it is: A) expensive, time-consuming, and creates black markets B) expensive, unfair, and time-consuming C) unfair, time-consuming, and creates black markets D) unfair, expensive, and creates black markets

41. Governments sometimes set prices to: A) Increase demand for a particular product B) protect producers and consumers from dramatic price swings C) ensure that there will be an adequate supply of goods for consumers to purchase D) decrease the demand for a particular product

42. B) protect producers and consumers from dramatic price swings

43. Prices coordinate the decisions of producers and consumers by: A) Decreasing variability in supply and demand B) Increasing variability in supply and demand C) Limiting the impact of supply and demand D) Balancing the forces of supply and demand

45. The benefits provided by the price system include: A) incentives, flexibility, and externality B) incentives, choice, and flexibility C) choice and the availability of public goods D) information, efficiency, and positive externality

46. B) incentives, choice, and flexibility

47. One of the limitations of the price system: A) It’s a failure to assign the cost of public goods to all consumers B) the availability of a variety of goods and services C) that it encourages the wise use of resources D) its ability to deal with change

48. A) It’s a failure to assign the cost of public goods to all consumers

49. Second part of Jeopardy is on Chapter 7

50. Also called producers (choose the best answer): A) sellers B) buyers C) suppliers D) demand

51. A) Sellers

52. Gives a business exclusive rights to produce an invention:

53. Patent

54. Two to Five businesses dominating the marketplace is known as a (an) _______.

55. Oligopoly

56. Also called consumers: A) sellers B) buyers C) suppliers D) demand

57. B) Buyers

58. This happens when sellers start undercutting their competitor’s price:

59. Price War

60. An ideal market condition that includes a large number of sellers of identical goods and services and in which no one seller controls supply or prices:

61. Perfect Competition

62. Laws that encourage competition in the marketplace:

63. Antitrust Laws

64. A product such as petroleum or milk that is considered the same no matter who produces or sells it:

65. Commodity

66. A government issued right to operate a business:

67. License

68. True or False Non-Price competition is competition on a basis other than price.

69. True

70. True or False The main goal of price differentiation and Non-Price competition is to increase profits.

71. True

72. A monopoly created by the government: A) natural monopoly B) government monopoly C) imperfect monopoly D) perfect monopoly

73. B) government monopoly

74. A market structure in which one seller controls all production of a good or service:

75. Monopoly

76. Give me an example of a monopoly---you can’t say Microsoft:

77. Answers may vary……..

78. What sets the price in a perfectly competitive market:

79. Supply and Demand

80. Yes or No Can the Federal Trade Commission order a shut down of a company that uses unfair methods of competition:

81. No They may only force them to change their methods

82. The effort by sellers to secretly set production levels or prices is called:

83. Collusion

84. A market that runs most efficiently when one large firm supplies all the output: A) Natural monopoly B) Technological monopoly C) Geographical monopoly D) Government monopoly

85. A. Natural Monopoly

86. True or False Factors that cause a products average cost per unit to fall as output rises is called economies of scale.

87. True

88. True or False When the Civil War ended in 1865, many small companies were forced out of business or were taken over by larger companies:

89. True

90. An organized system of price fixing and market sharing is known as a ______________.

91. Cartel

92. Non-Price competition is competition on a basis other than _________.

93. Price

94. The most common type of noncompetitive market in the United States is a(n): A) Monopoly B) Oligopoly C) Perfect Competition D) Collusion

95. B. Oligopoly

96. Which of the following is an illegal form of determining prices: A) Collusion B) Price war C) Substitution D) Price Leadership

97. A. Collusion

98. The expenses a new business must pay before it can begin to produce and sell goods:

99. Start-up Costs

100. Last Question: When a surplus exists in a market, what tends to fall:

101. Prices

102. Last Question: When two or more companies join to form a single firm:

103. Merger