semestre 4 parcial

Question 1

Is characterized by an elaborate network of tradethat depends on specializationand an intricate division of labor.

Answer 1

modern mixed economy

Question 2

Make extensive use of money, which provides the yardstick for measuring economic values and is the means of payment.

Answer 2

modern mixed economy

Question 3

mixed economy is the combination of:

Answer 3

market economy and centralized economy

Question 4

Mechanismthrough which buyers and sellers interact to determine prices and exchange goods, services, and assets.

Answer 4

market

Question 5

Thevalueofa Good in termsofmoney; thetermsonwhichdifferentítems can be exchanged

Answer 5

price

Question 6

problems of economic organization

Answer 6

what ( money votes, profits)
how (minimum costs, technology)
for whom (income, factor services, factor prices)
tastes
technology

Question 7

Buying, selling, or exchanging, goods and/or services between people or countries

Answer 7

trade

Question 8

People and countries concentrate their efforts on a particular set oftasks

Answer 8

specialization

Question 9

Dividing production into a number of small specialized steps or tasks

Answer 9

division of labor

Question 10

A single buyerorseller CAN affect the price of a good (Monopoliesand Monopsonies)

Answer 10

imperfect competition

Question 11

(Or spillover effects) Occur when firms or people impose costs or benefits on others outside the marketplace (Pollution; a new drug)

Answer 11

externalities

Question 12

Commodities which can be enjoyed by everyone and from which no one can be excluded (Street lights)

Answer 12

public goods

Question 13

the role of the government in modern mixed economy

Answer 13

1. they increase efficiency by promoting competition, curbing externalities and providing public goods
2. they promote equity by using tax and expenditure programs to redistribute income toward particular groups

Question 14

Commodities which can be enjoyed by everyone and from which no one can be excluded (Street lights)

Answer 14

economy

Question 15

To produce the highest combination of quantity and quality of goods and services given the technology and scarce resources.

Answer 15

efficiency

Question 16

Goodsare limitedrelative todesires

Answer 16

scarcity

Question 17

Studies the behavior of individual entities such as markets, firms, and households.

Answer 17

micro economics

Question 18

its concerned with the overall performance of the economy

Answer 18

macroeconomics

Question 19

fallacy involves the inference of causality. Occurs when we assume that, because one event occurred before another event, the first event caused the second event.

Answer 19

the post hoc fallacy

Question 20

When you assume that what is true for the part is also true for the whole, you are committing the fallacy of composition.

Answer 20

fallacy of composition

Question 21

Commodities or services that are used to produce goods and services

Answer 21

inputs

Question 22

Useful goods or services that are either consumed or employed in further production

Answer 22

outputs

Question 23

societys technological posibilities

Answer 23

inputs –> production process –> outputs

Question 24

shows the maximum quantity of goods that can be efficiently produced by an economy, given its technological knowledge and the quantity of available inputs.

Answer 24

the production possibility frontier

Question 25

the ___ of a decision is the value of the good or service forgone.

Answer 25

opportunity cost

Question 26

of a decision is the value of the good or service forgone.

Answer 26

Price elasticity of demand or price elasticity

Question 27

The responsiveness of the quantity supplied of a good to its market price

Answer 27

supply elasticity

Question 28

perfectly competitive market have:

Answer 28

- market with many buyers and sellers - trading identical products - each buyer and seller is a price taker - firms can freely enter or exit the market

Question 29

this point comes where revenues just cover variable costs or where losses are equal to fixed costs. When the price falls below average variable costs, the form will maximize profits by ____

Answer 29

shutting down, shutdown rule

Question 30

prevails in an industry whenever individual sellers can affect the price of their output

Answer 30

imperfect competition

Question 31

a single producer, product without close substitutes

Answer 31

monopoly

Question 32

few producers, products can be differentiated or have little to no difference

Answer 32

oligopoly

Question 33

many producers, many real or perceived differences in product

Answer 33

monopolistic competition

Question 34

costs and market imperfection

Answer 34

- cost structure and economies of scale - market size

Question 35

barriers to entry the sources of market imperfection

Answer 35

- legal restrictions - high cost of entry - advertising and product differentiation

Question 36

the change in revenue generated by an additional unit of sales

Answer 36

marginal revenue

Question 37

is the study of how societies use scarce resources to produce valuable goods and services and distribute them among different individuals.

Answer 37

economics

Question 38

factors of production

Answer 38

land, labor, capital and entrepreneurship

Question 39

occurs when an economy cannot produce more of one good without producing less of another good; this implies that the economy is on its production-possibility frontier.

Answer 39

productive efficiency