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Flashcards in Economics BA Deck (30):
0

How do large stores affect mom and pops stores?

Economies of sales

1

How do labor unions impact competitive markets?

Cost of labor

2

How do consumers keep the markets competitive?

Low cost products

3

What does an increase in price lead to?

Increased profits

4

What are incentives to attract buyers?

Equals lower prices for consumers

5

What causes an increase for hybrid cares?

High oil/gas costs

6

Why will a business pay for an employees education?

To increase their output

7

Why did GM invest in new technology?

To increase efficiency

8

When a business invests in physical capital, what will others do?

It will force others to stay competitive

9

What happens when production costs go down?

Supply will increase

10

What happens if raw material prices increase?

It will lead to a decrease of supply

11

What is the law of supply?

Quantity of goods supplied is greater at a high price than at a lower price

12

What is the law of demand?

Consumers will purchase more at lower prices

13

What is an example of substitution?

When the cost of pizza increases, people will buy more hot dogs

14

What is the elasticity of demand for insulin?

Change in price will not affect the demand

15

What concept explains the price of hamburger and demand for hamburger buns?

Complementary goods

16

What government policy will cause an increase in demand for windows?

Tax incentives for home improvement

17

What is the role of the US government?

Protect the property rights of individuals and businesses

18

How does the government protect consumers?

Health and safety standard for goods and services

19

What is equilibrium?

Where supply and demand meet on a graph

20

What does an increase in consumers equal

Increase in demand

21

What is the advantage of a command economy?

Full employment

22

What is an advantage of a market economy?

Efficiency

23

What is a statement Karl Marx would agree with?

One will live according to their ability and to their need.

24

What economic system will answer the needs of the consumer?

Market/mixed

25

What happens in a command economy?

Shortages

26

Why is the US a mixed economy?

Both market and command (government rules)

27

What flows from a business to a consumer?

Resources = end product

28

Factor market

Labor goes to business

29

What would happen if the population of the US increases?

Labor flow to business will also decrease