Daily Ten

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

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

- 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 mealb. the $8 paid to see the moviec. the time spent watching the movied. the satisfaction received by going to the movie

Explanation: Opportunity cost measures the cost of the ____________ valued alternative forgone. Economics Daily Ten #2SSEF1 b - 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 mealb. the $8 paid to see the moviec. the time spent watching the movied. the satisfaction received by going to the movie

highestThe probable impact of corporate downsizing is a movement frompoint X toA. point MB. point NC. point OD. point PEconomics Daily Ten #3Study the graph below and use it to answer the following question.

The probable impact of corporate downsizing is a movement frompoint X toA. point MB. point NC. point OD. point PExplanation: The PPF model shows the production possibilities between two goods. It is a visual illustration of ______________________.opportunity costEconomics Daily Ten #4Study 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 oneimportant reason forA. a shift from curve CD to point GB. a shift from curve EF to curve CDC. a movement from point Y to point ZD. a shift from curve CD to curve EF

Explanation: An increase in the factor of production of __________ would increase the work force and ability to produce at a greater level.A. a shift from curve CD to point GB. a shift from curve EF to curve CDC. a movement from point Y to point ZD. a shift from curve CD to curve EF labor - 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. Marketb. Mixedc. Traditionald. 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. Marketb. Mixedc. Traditionald. CommandExplanation: ____________ 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.MixedConsumersFirms - Fill in the blanks for each of the following:QB Peyton Mannings high salary, vs. a cashiers 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 #2equityinnovationpredictabilitysecuritygrowthEconomics Daily Ten #3Which of the following is MOST important for economic growth? a. an efficient use of resourcesb. ample tax revenuesc. availability of resourcesd. a large labor force

In the American economy, the goal of economic equity is MOST connected with a. restoring laissez-faire capitalismb. creating limits on corporate profitsc. subsidizing businesses that would otherwise faild. giving participants a fair chance to succeed

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 _____________.Which of the following is MOST important for economic growth? a. an efficient use of resourcesb. ample tax revenuesc. availability of resourcesd. a large labor force

In the American economy, the goal of economic equity is MOST connected with a. restoring laissez-faire capitalismb. creating limits on corporate profitsc. subsidizing businesses that would otherwise faild. giving participants a fair chance to succeed

In the American economy, the goal of economic equity is MOST connected with a. restoring laissez-faire capitalismb. creating limits on corporate profitsc. subsidizing businesses that would otherwise faild. giving participants a fair chance to succeed

efficiencyfairskillsEconomics Daily Ten #4In a market economy, how are the basic economic questions of what, how, and for whom to produce answered?a. by using a nations social customs and traditionsb. by using a combination of traditional and command economiesc. by the individuals and firms in the nations marketplaced. by the nations federal and/or local governments

A market economy has an advantage over a traditional economy in that the market economya. controls prices and wagesb. fixes incomes of consumersc. limits the profits of large corporationsd. 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. In a market economy, how are the basic economic questions of what, how, and for whom to produce answered?a. by using a nations social customs and traditionsb. by using a combination of traditional and command economiesc. by the individuals and firms in the nations marketplaced. by the nations 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 nations social customs and traditionsb. by using a combination of traditional and command economiesc. by the individuals and firms in the nations marketplaced. by the nations federal and/or local governments

A market economy has an advantage over a traditional economy in that the market economya. controls prices and wagesb. fixes incomes of consumersc. limits the profits of large corporationsd. adjusts to consumer demands over time

IndividualsFirmsEconomics Daily Ten #5Study the model below and use it to answer the following question.The flow of goods and services to consumers is illustrated byA. 4 to 2B. 8 to 6C. 2 to 5D. 6 to 1

Explain: ____________circles represent the flow of money,___________ circles represent the flow of inputs and outputs.The flow of goods and services to consumers is illustrated byA. 4 to 2B. 8 to 6C. 2 to 5D. 6 to 1OuterInnerEconomics Daily Ten #61. What is the function of an economic system?a. to make sure all people have equal access to goodsb. to organize and distribute scarce resources c. to give all producers the same access to consumersd. 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 economyb. command economyc. traditional economyd. economy of scale

Explanation: a _______________ economy would offer the greatest degree of economic freedom.market1. What is the function of an economic system?a. to make sure all people have equal access to goodsb. to organize and distribute scarce resources c. to give all producers the same access to consumersd. 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 economyb. command economyc. traditional economyd. economy of scale

1. What is the function of an economic system?a. to make sure all people have equal access to goodsb. to organize and distribute scarce resources c. to give all producers the same access to consumersd. 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 economyb. command economyc. traditional economyd. economy of scale

Economics Daily Ten #7What is the purpose of competition in a market economy?a. to create centralized control in the marketplace of one businessb. to cause producers to attempt to put each other out of businessc. to cause buyers and sellers to be generous about spending their moneyd. to act as a motivating force behind the free marketWhich describes the metaphor of the invisible hand?a. an economy where the 3 economic questions are answered by the governmentb. 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 productiond. a tangible force behind a modified free enterpriseWhat is the purpose of competition in a market economy?a. to create centralized control in the marketplace of one businessb. to cause producers to attempt to put each other out of businessc. to cause buyers and sellers to be generous about spending their moneyd. to act as a motivating force behind the free marketWhich describes the metaphor of the invisible hand?a. an economy where the 3 economic questions are answered by the governmentb. 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 productiond. a tangible force behind a modified free enterpriseEconomics Daily Ten #8Properly label each component of the circular flow model, indicating the two markets, two entities and what is represented by each arrow.

Consumer SpendingBusiness RevenueIncome to HouseholdsPayments to HouseholdsConsumer Goods/ServicesOutputsLand, Labor, CapitalInputsEconomics Daily Ten #9The idea that producers make goods that consumers like and are willing to pay for is a principle of which of the following economic systems?TraditionalCommandMarketSocialism

2. In what kind of economy does the government own the means of production?a. Traditionalb. Marketc. Commandd. 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?TraditionalCommandMarketSocialism

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?TraditionalCommandMarketSocialism

2. In what kind of economy does the government own the means of production?a. Traditionalb. Marketc. Commandd. Mixed

Economics Daily Ten #10Kim works on an automobile assembly line. Kims job illustrates a productionprocess that relies on a. autonomous work groupsb. team decision makingc. quality circlesd. division of labor If a nation encourages entrepreneurship, then which of the following is likely to occur? a. very little change in overall production of goods and servicesb. the development of many new products and process methodsc. fewer applications to the United States Patent Officed. a decline in the number of new businesses startedExplanation: _______________ is another term for_________________, which focuses on the efficient use of resourcesDivision of laborspecializationKim works on an automobile assembly line. Kims job illustrates a productionprocess that relies on a. autonomous work groupsb. team decision makingc. quality circlesd. division of labor If a nation encourages entrepreneurship, then which of the following is likely to occur? a. very little change in overall production of goods and servicesb. the development of many new products and process methodsc. fewer applications to the United States Patent Officed. a decline in the number of new businesses startedEconomics Daily Ten #41. Why does a free market economy need some government intervention?a. so that the government has total control over factor resourcesb. to ensure the government has the freedom to tax as necessaryc. to make sure that the government can fulfill its needs for goods and servicesd. 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. socialistb. laissez fairec. centrally planned, or command economyd. free enterprise

Explanation: (d) most modern economies are mixed, or have some government involvement to regulate, protect and oversee.Explanation: (c) command economies are controlled by a dictator, or small group of economic policy makers.Explanation: Explanation: - An efficient economy is one that

Explanation: (c) efficiency is using resources wisely to produce goods and services Economics Daily Ten #2Explanation: a. Has very few people who do not work for a livingb. Makes less use of all its goods and servicesc. Uses the factors of production wisely and not wastefullyd. Makes the least costly use of it resourcesEconomics Daily Ten #71. The upper line of monetary flow, marked 1 shows thea. factor marketb. product marketc. supply and demandd. production possibilities frontier2. The lower half, marked 2 represents thea. factor marketb. product marketc. supply and demandd. production possibilities frontier3. Which of the following is not flowing from the household to the firm in the factor market?a. Landb. Laborc. Capitald. Goods

Economics Daily Ten #71. The upper line of monetary flow, marked 1 shows thea. factor marketb. product marketc. supply and demandd. production possibilities frontier2. The lower half, marked 2 represents thea. factor marketb. product marketc. supply and demandd. production possibilities frontier3. Which of the following is not flowing from the household to the firm in the factor market?a. Landb. Laborc. Capitald. Goods

Economics Daily Ten #71. The upper line of monetary flow, marked 1 shows thea. factor marketb. product marketc. supply and demandd. production possibilities frontier2. The lower half, marked 2 represents thea. factor marketb. product marketc. supply and demandd. production possibilities frontier3. Which of the following is not flowing from the household to the firm in the factor market?a. Landb. Laborc. Capitald. Goods

Economics Daily Ten #71. The upper line of monetary flow, marked 1 shows thea. factor marketb. product marketc. supply and demandd. production possibilities frontier2. The lower half, marked 2 represents thea. factor marketb. product marketc. supply and demandd. production possibilities frontier3. Which of the following is not flowing from the household to the firm in the factor market?a. Landb. Laborc. Capitald. Goods

Economics Daily Ten #1Buyers and sellers willingly engage in a transaction that benefits both parties because of which concept in economics?a. economic equityb. communismc. voluntary exchanged. property rightsOne of the strongest incentives in the market economy is to make money, this is illustrated by the concept of a. property rightsb. profit motivec. voluntary exchanged. division of laborExplanation: ____________________is the free trade of goods and services and the gains made from trade.Explanation: ___________________is the motivating factor behind every firm.Buyers and sellers willingly engage in a transaction that benefits both parties because of which concept in economics?a. economic equityb. communismc. voluntary exchanged. property rightsOne of the strongest incentives in the market economy is to make money, this is illustrated by the concept of a. property rightsb. profit motivec. voluntary exchanged. division of laborVoluntary ExchangeProfit MotiveEconomics Daily Ten # 2Someone who does not pay for a public good/service, but benefits from it is a a. free-loaderb. free-riderc. free-persond. free-birdExplanation: 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 efficientlya. market externalityb. market productionc. market failured. market deficitExplanation: __________________ occur as a result of an inability for the market to answer the three economic questions on its own.free-rider market failures Someone who does not pay for a public good/service, but benefits from it is a a. free-loaderb. free-riderc. free-persond. free-birdA situation in which the market on its own does not distribute resources efficientlya. market externalityb. market productionc. market failured. market deficitEconomics Daily Ten # 3Exposure to second hand smoke would be an example of aa. positive externalityb. negative externalityc. negative perspectived. positive incentiveThe primary way to improve productivity isa. reduced work ethicb. negative incentivesc. improved technologyd. removal of subsidies from the private sectorExplanation: _________________ are a cost or benefit incurred by a party who was not directly involved in the action causing the cost or benefit.Explanation: _______________ plays a major role in a societys productivity, allowing more _______________ to be created with less _______________. ExternalitiesTechnologyExposure to second hand smoke would be an example of aa. positive externalityb. negative externalityc. negative perspectived. positive incentiveThe primary way to improve productivity isa. reduced work ethicb. negative incentivesc. improved technologyd. removal of subsidies from the private sectoroutputsinputsEconomics Daily Ten # 11Which of the following is a role of the government in a modified free enterprise?a. ensure that businesses follow certain environmental protection rulesb. ensuring that business obtain market power and determine price fixingc. ensuring that the market is completely deregulated in order to allow competition to flourishd. To actively dismiss the public interest for the concerns of the firmsExplanation: (a) government plays the role of informer, protector and regulator of the U.S. economyThe primary way to improve productivity isa. reduced work ethicb. negative incentivesc. improved technologyd. removal of subsidies from the private sectorExplanation: (c) technology plays a major role in a societys productivity and growth. Economics Daily Ten #4PriceQuantity DemandedWhy 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.

Explanation: The ________________ relationship between ________ and ____________________ causes a downward sloping curve

P QP Qinversepricequantity demandedWhy 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.

PriceQuantity DemandedP1P2Q1Q2PriceEconomics Daily Ten #2Respectively, what do the above graphs illustrate?a. A change in quantity demanded/a change in demandb. A change in demand/a change in demandc. A change in quantity demanded/a change in quantity demandedd. A change in demand/a change in quantity demanded

Quantity DemandedRespectively, what do the above graphs illustrate?a. A change in quantity demanded/a change in demandb. A change in demand/a change in demandc. A change in quantity demanded/a change in quantity demandedd. 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.Economics Daily Ten #3Test Your UnderstandingEach of the following represents an analysis of the demand for the American automobile industryIn 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 alongEconomics Daily Ten #4EventEffect (Change in QD or Change in D)(Shift or Movement)1. The price of designer clothing increases.2. The price of designer clothes decreases.3. The popularity of polo brand clothing increases.4. The cost of Polo clothing doubles, what is the effect on Hilfiger brand clothing?5. Consumers receive a pay raise; designer clothing is a normal good.6. Consumers expect designer clothing to fall in price in a week.7. There is a decrease in the population of an area.Quantity DemandedMovementQuantity DemandedMovementDemandShift to the rightDemandShift to the rightDemandShift to the rightDemandShift to the leftDemandShift to the leftEconomics Daily Ten # 7Complete the following chart:

Calculate the following using the midpoint method.ProductElastic or InelasticDeterminantGasoline (tomorrows prices)Heinz baked beansInfiniti G37Insulin for a diabetic Q2 Q1__ ________ (Q2 + Q1)/2 = ____________ = ______ = ______ P2 P1__ ________ (P2 + P1)/2InelasticTime HorizonElasticAvailability of SubstitutesElasticNecessity vs. Luxury/Relative ImportanceNecessity vs. Luxury/Relative ImportanceInelastic300250 30 351.2.861.4ElasticElastic or Inelastic ___________5020100400Elastic or Inelastic ___________Economics Daily Ten # 8Complete the following chart:

Calculate the following using the midpoint method.ProductElastic or InelasticDeterminantGasoline (5 years from now)Food in generalMarlboro Cigarettes Table Salt Q2 Q1__ ________ (Q2 + Q1)/2 = ____________ = ______ = ______ P2 P1__ ________ (P2 + P1)/2ElasticTime HorizonInelasticNecessity vs. LuxuryElasticAvailability of Close SubstitutesRelative ImportanceInelastic4080 57.5.5.67.75Inelastic

Economics Daily Ten #3PriceQuantity Demanded1. 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.

Explanation: (d) Price falls, quantity demanded increases

P1P2Q1Q2Economics Daily Ten #4Study the model below and use it to answer the following question.Which situation would cause the shift of the demand curve to shift from D1 to D2?A The economy is experiencing a recession and peoples 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: PriceQuantity DemandedD1D2Explain: List Determinants of Demand: (c) Income, Tastes, Price of Related Products, Expectations, Number of BuyersEconomics Daily Ten # 6Ceteris Paribus meansa. all things changingb. all things remaining constantc. all things constantly changingd. all things remaining changedExplanation: (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 curveb. a change in quantity demandedc. a change in supplyd. a change in demande. movement along the demand curveExplanation: (b and e) price (of an item in study) does not change demand.Economics Daily Ten #21. 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 Im dead broke.c. I want to build a deck, so Im saving the money and Im 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.Economics Daily Ten #1PriceQuantity Supplied1. 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.

PriceQuantity SuppliedS1S22. 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.

P QSP QS1. 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.

Economics Daily Ten # 2Complete the following chart:

ScenarioDeterminant(s)ShiftThe government imposes an excise tax on tanning beds. Samsung, Microsoft and Google develop their own line of smart phones.New home builders anticipate a decline in demand and reduce their inventory.Government reduces their payments to farmers.New machinery improves manufacturing efficiency.Gas prices increase.Taxes/RegulationNumber of SellersFuture Expectation of PricesSubsidiesTechnologyInput CostsLeftRightLeftLeftRightLeftEconomics Daily Ten #31. 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

PriceQSS1S2PriceQSS2S1

Economics Daily Ten #4Study the model below and use it to answer the following question.1. What is the Pe and Qe respectively at the equilibrium point? 50, 66, 505, 6060, 52. At $3 there would be a _____ of _____ quantity. Shortage, 50Shortage, 60Surplus, 50Surplus, 60QS QD20 80 = - 60

50, 66, 505, 6060, 5Shortage, 50Shortage, 60Surplus, 50Surplus, 60Economics Daily Ten #5Study 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 = 20belowShortage - 203Economics Daily Ten #6Using a properly labeled graph, illustrate the below current headlines iPhone 4S pre-orders sell out in first 12 hours of availabilityAnalyst predicts Toyota's sales down 17%, due to past recallWorst Texas Drought in 44 Years Damaging Wheat Crop, Reducing Cattle HerdsFinally!: Used-car prices are falling due to reduced demand

SD

40Economics Daily Ten #6Which 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 workersLease on the buildingHourly workersElectricity Explanation: (c, d) variable costs change based on production.Economics Daily Ten #4Study 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

Economics Daily Ten #1 Characterize the following as sole proprietor, partnership or corporation.Google, inc. Cohen and Cohen Law FirmJohn Does Island Landscaping

Which of the following is not an advantage of a sole proprietorship?Easy to start upSole receiver of profitFull control of decision-makingUnlimited personal liabilityRelatively few regulations

CorporationPartnershipSole ProprietorWhich of the following is not an advantage of a sole proprietorship?Easy to start upSole receiver of profitFull control of decision-makingUnlimited personal liabilityRelatively few regulations

Economics Daily Ten #2Identify the proper term for each of the following:ScenarioTerm1. Vivendi Company purchases Universal Studios, Activision Gaming and MP3.com2. ESPN and Disney combine into one company3. Sirius Satellite and XM Radio combine into one company4. McDonalds in China5. Marshland Credit Union; owned by its members6. A purchase of the rights to use Zaxbys name and product

7. A business that is designed to help society, not make money8. An organization focused on negotiating for the laborers of a firmConglomerateVertical MergerHorizontal MergerMultinationalCooperative (Coop)Business FranchiseNon-ProfitLabor UnionEconomics Daily Ten #3Which of the following two are disadvantages of a partnership?Easy to start upShared decision making and specializationLarger pool of capitalPotential for conflictUnlimited liability

Which of the following two are disadvantages of a corporation?Limited liability More potential for growthDouble taxationLoss of controlLong life

Which of the following two are disadvantages of a partnership?Easy to start upShared decision making and specializationLarger pool of capitalPotential for conflictUnlimited liability

Which of the following two are disadvantages of a corporation?Limited liability More potential for growthDouble taxationLoss of controlLong life

Economics Daily Ten #41. Which of the following sets are arranged from most competitive to least competitive?a. absolute competition, monopolistic competition, imperfect competitionb. perfect competition, oligopoly, monopolistic competition, monopolyc. perfect competition, monopolistic competition, oligopoly, monopolyd. oligopoly, perfect competition, monopolistic competition, monopolye. absolute competition, imperfect competition, monopolistic competition, monopoly1. Which of the following sets are arranged from most competitive to least competitive?a. absolute competition, monopolistic competition, imperfect competitionb. perfect competition, oligopoly, monopolistic competition, monopolyc. perfect competition, monopolistic competition, oligopoly, monopolyd. oligopoly, perfect competition, monopolistic competition, monopolye. absolute competition, imperfect competition, monopolistic competition, monopoly 2. Describe the following as perfect competition, monopolistic competition, monopoly or oligopolies.Fast food companiesAutomobile industryAgricultural industryNational Football League

Monopolistic competitionOligopolyPerfect competitionMonopolyEconomics Daily Ten #5Identify the proper term for each of the following:ScenarioTerm1. The stock market2. The clothing industry3. Major League Baseball4. The airline industry5. Identical goods such as tomatoes6. The ability to control the market and dictate prices7. When firms charge different customers different prices8. When firms work together to price-fixPerfect CompetitionMonopolistic CompetitionMonopolyOligopolyCommodityMarket PowerPrice DiscriminationCollusionEconomics Daily Ten #6 1. Price discrimination occurs when one companya. offers the same price b. offers one price to one individual and another price to another individualc. offer a price set by a government price ceilingd. offers a price set by a government price floorThe level of difficulty incurred by a firm when entering a market is a Business Roadblock Market Wall Barrier to EntryPower of the Market

1. Price discrimination occurs when one companya. offers the same price b. offers one price to one individual and another price to another individualc. offer a price set by a government price ceilingd. offers a price set by a government price floorThe level of difficulty incurred by a firm when entering a market is a Business Roadblock Market Wall Barrier to EntryPower of the Market

Economics Daily Ten #7Which of the following would not be considered Price discrimination?Kids eat freeSenior citizen discount at a restaurantStudent discount at the movies10% discount at Target

Which of the four forms of nonprice competition would reflect the following?A new shape for a bottle of cokeBe our guest Disney mottoRalph Lauren vs. Wal-mart brand clothingA fast food restaurant near I-95

Physical CharacteristicsService LevelAdvertising, Image, or StatusLocationWhich of the following would not be considered Price discrimination?Kids eat freeSenior citizen discount at a restaurantStudent discount at the movies10% discount at Target

Economics Daily Ten #11. Classify the following components of GDPDell 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. _________________________2. All of the following are accurate regarding the definition of GDP EXCEPTThe market valueOf all final goods and servicesProduced by a countrys companies, domestically and abroadIn a given period of timeInvestment (I)Government (G)Consumption (C)Net Exports (NX)2. All of the following are accurate regarding the definition of GDP EXCEPTThe market valueOf all final goods and servicesProduced by a countrys companies, domestically and abroadIn a given period of timeEconomics Daily Ten #21. Complete the following in order to classify the stages of the business cycle2. Two quarters of economic decline is known as a ______TroughRecessionDepressionRecovery PeakContractionTroughExpansionRecessionRecovery2. Two quarters of economic decline is known as a ______TroughRecessionDepressionRecovery Economics Daily Ten #3What would you conclude about an economy characterized by increasing real (GDP), low unemployment?This economy is in a slowdown.The government needs to address the unemployment problem.This economy is in the expansion phase of a business cycle.This economy is in the trough phase of a business cycle.What would you conclude about an economy characterized by increasing real (GDP), low unemployment?This economy is in a slowdown.The government needs to address the unemployment problem.This economy is in the expansion phase of a business cycle.This economy is in the trough phase of a business cycle.2. What is the best measure of a countrys standard of living?Real GDPNominal GDPThe amount of wealthy peoplePer Capita GDP2. What is the best measure of a countrys standard of living?Real GDPNominal GDPThe amount of wealthy peoplePer Capita GDPCalculate the GDP deflator using the following figures: Real GDP 2011 ($11.9 trillion)Nominal GDP 2011 ($14.7 trillion) using the following formula: Nominal GDP X 100 = Real GDP

__14.7 = _______X 100 = _____ 11.91.24 124Economics Daily Ten #42. Calculate Real Per Capita GDP by using the following formula: Real GDP 2009 Total Pop. 2009*2009 Real GDP $14,658 trillion*2009 Total Pop. 307 million _14658_ .307 = _$47,746_

Nominal GDP 2003 - 1470Nominal GDP 2004 - 18303. Determine the nominal and real GDP for each year.Real GDP 2003 - 1470Real GDP 2004 - 1560Economics Daily Ten #3Country2011 (Trillions)PopulationPer Capita GDPPopulation RankPer Capita GDP RankUSA$14.582 307,007,000China$5.8791,338,000,000Japan$5.498127,558,000Germany$1,740,000,000,00082,080,000France$1,340,000,000,00058,800,000UK$1,240,000,000,00058,970,000Brazil$1,040,000,000,000169,800,000Mexico$694,300,000,00098,550,000Russia$692,000,000,000146,860,000Canada$658,000,000,00030,680,000Use the first table to fill in the information, including population.1. Describe how population might affect GDP.2. What does Per Capita GDP tell you about a country's economy and standard of living?4. Based on the table above, which country has the highest standard of living? The lowest?5. Why are the citizens of the countries with high Per Capita GDP more likely to have a better quality of life than other countries?Economics Daily Ten #3Country1998 GDPPopulationPer Capita GDPPopulation RankPer Capita GDP RankUSA$8,080,000,000,000270,310,000China$4,250,000,000,0001,240,000,000Japan$3,080,000,000,000125,930,000Germany$1,740,000,000,00082,080,000France$1,340,000,000,00058,800,000UK$1,240,000,000,00058,970,000Brazil$1,040,000,000,000169,800,000Mexico$694,300,000,00098,550,000Russia$692,000,000,000146,860,000Canada$658,000,000,00030,680,000Use the first table to fill in the information, including population.1. Describe how population might affect GDP.2. What does Per Capita GDP tell you about a country's economy and standard of living?3. Based on the table above, which country has the highest standard of living? The lowest?4. Why are the citizens of the countries with high Per Capita GDP more likely to have a better quality of life than other countries?$29, 892$3,427$24,458$21,199$22,789$21,028$6,125$7,045$4,712$21,4471234567891012345678910The higher the per capita gdp, the higher the standard of living. United States, ChinaPositive Externalities, people benefit from the spillover of social benefits created by the pursuit of self-interest.In general, the larger the population, the larger the gdp.Larger population can reduce per capita gdp.GDP Country ComparisonCountry1998 GDPPopulationPer Capita GDPPopulation RankPer Capita GDP RankUSA$8,080,000,000,000270,310,000China$4,250,000,000,0001,240,000,000Japan$3,080,000,000,000125,930,000Germany$1,740,000,000,00082,080,000France$1,340,000,000,00058,800,000UK$1,240,000,000,00058,970,000Brazil$1,040,000,000,000169,800,000Mexico$694,300,000,00098,550,000Russia$692,000,000,000146,860,000Canada$658,000,000,00030,680,000Use the first table to fill in the information, including population.1. Describe how population might affect GDP.2. What does Per Capita GDP tell you about a country's economy and standard of living?3. Based on the table above, which country has the highest standard of living? The lowest?4. Why are the citizens of the countries with high Per Capita GDP more likely to have a better quality of life than other countries?Economics Daily Ten #1What range of the unemployment rate would indicate that a fully employed economy? 4-6%7-8%10-12%14-16%4-6%Determine the unemployment rate based on the following information:Unemployed: 8.5 millionLabor Force: 190 million8.5/190 = .0447 X 100 = 4.5%Economics Daily Ten #2Determine the CPI for 2010 based on the following information:Market Basket 2010: $3907.561982-1984 Market basket: $1792.00

2. Determine the inflation rate from 2009 to 2010 based on the following information:CPI 2010 = 218.1CPI 2009 = 214.5

3907.56/1792 = 2.18056 x 100 = 218.1218.1 214.5 = 3.63.6/214.5 = .0167 x 100 = 1.67%

Economics Daily Ten #2Determine the unemployment rate based on the following information:Unemployed: 8.5 millionLabor Force: 190 million

Determine the CPI for 2010 based on the following information:Market Basket 2010: $3907.561982-1984 Market basket: $1792.00

Determine the inflation rate from 2009 to 2010 based on the following information:CPI 2010 = use answer from aboveCPI 2009 = 214.5

3907.56/1792 = 2.18056 x 100 = 218.1218.1 214.5 = 3.63.6/214.5 = .0167 x 100 = 1.67%

Economics Daily Ten #1List the function that each of the following serves:Money can earn interest in the bank.Money can buy things.Money is a way to keep track of debts/investments.List the following in order from most liquid to least: House, car, checking account, savings account.Store of ValueMedium of ExchangeUnit of AccountChecking account, savings account, car, houseEconomics Daily Ten #2When the Federal Reserve buys government securities (bonds) on the open market, what effect does this action have on the nations money supply?Money Supplyincreases falls stays the samedecreasesWhich of the following is responsible for the control of the money supply?the United States Treasurythe Federal Reserve Systemthe Federal Deposit Insurance Corporationthe Comptroller of the Currencythe Federal Reserve Systemincreases Economics Daily Ten #3The policy of the Fed to increase the money supply during a downturn in the economy reflectstight-money policy center-money policy easy-money policyhard-money policyThe Federal Reserve System conducts its business directly withthe government and banksstock marketsindividuals and firmsproduct markets and factor marketseasy-money policythe government and banks A $3000 deposit is made in the bank and the RRR is 9%.How much must be held as required reserves?

How much will be available in excess reserves?

How much could the initial deposit increase the money supply?Economics Daily Ten #43000 x .09 = $2703000 270 = $2730MM = 1/.09 = 11.113000 x 11.1 = $33,333.33The BEST example of a progressive tax in the United States isthe federal excise tax on gasolinethe Social Security taxthe federal personal income taxstate sales taxesEconomics Daily Ten #1Which of the following taxes is MOST regressive?the federal income taxa sales tax on fooda luxury taxthe corporate income taxThe BEST example of a progressive tax in the United States isthe federal excise tax on gasolinethe Social Security taxthe federal personal income taxstate sales taxesEconomics Daily Ten #1Which of the following taxes is MOST regressive?the federal income taxa sales tax on fooda luxury taxthe corporate income taxThe BEST example of a progressive tax in the United States isthe federal excise tax on gasolinethe Social Security taxthe federal personal income taxstate sales taxesEconomics Daily Ten #1Which of the following taxes is MOST regressive?the federal income taxa sales tax on fooda luxury taxthe corporate income taxIf the federal government is attempting to encourage spending by consumers and businesses, a fiscal policy BEST serving this purpose would bedecreasing taxesdecreasing government spendingreducing the investment tax creditbalancing the budgetEconomics Daily Ten #2Which of the following results when federal government expenditures are less than the federal governments total revenue?a trade surplusa federal budget deficita negative balance of paymentsa federal budget surplusIf the federal government is attempting to encourage spending by consumers and businesses, a fiscal policy BEST serving this purpose would bedecreasing taxesdecreasing government spendingreducing the investment tax creditbalancing the budgetEconomics Daily Ten #2Which of the following results when federal government expenditures are less than the federal governments total revenue?a trade surplusa federal budget deficita negative balance of paymentsa federal budget surplusIf the federal government is attempting to encourage spending by consumers and businesses, a fiscal policy BEST serving this purpose would bedecreasing taxesdecreasing government spendingreducing the investment tax creditbalancing the budgetEconomics Daily Ten #2Which of the following results when federal government expenditures are less than the federal governments total revenue?a trade surplusa federal budget deficita negative balance of paymentsa federal budget surplusEconomics Daily Ten #3Use an aggregate demand and aggregate supply diagram to illustrate and explain how each of the following will affect the equilibrium price level and real GDP:Consumers spending declines as a result of a recessionGovernment spending increasesForeigners prefer Chinese products over U.S. products

PriceLevelQuantity ofOutputEquilibriumprice levelAggregate supply (AS)Aggregate demand (AD)Equilibriumoutput

Economics Daily Ten #4

Economics Daily Ten #1China and the United States are considering trade of two products, Cars and Cheese. The U.S. can produce 15 cars, while in China they can produce 4. In the U.S. they can produce 5 tons of cheese, while in China can only produce 2.Who has absolute advantage in this situation?________ has a comparative advantage when producing cars________ has a comparative advantage when producing cheese.Therefore, ___________ should produce cars and __________ should produce cheese.

ProductivityCarsCheeseUS = _____ cheese = ______ carsChina = _____ cheese = ______ cars1/3 3 1/2 2 5/1515/54/22/415524 US China US ChinaExplain: Absolute advantage exists when one country can produce better than another (lower financial cost). Comparative advantage is determined by lower opportunity cost. USEconomics Daily Ten #2Japan and the Canada are considering trade of two products, CDs and Beef. Japan can produce 4 cds, while in Canada they can also produce 4. In Japan they can produce 2 pounds of beef, while in Canada they can produce 6.Who has absolute advantage in producing Cds? _________________________ has a comparative advantage when producing cds________ has a comparative advantage when producing beef.Therefore, ___________ should produce cds and __________ should produce beef.

ProductivityCDSPounds of Beef

Japan = _____ beef = ______ cdsCanada = _____ beef = ______ cds 2/44/24/66/44264 Japan Canada Japan Canada Neither1/2 or .5 2 3/2 or 1.5 2/3