Economics Study Guide Chapter 14

Economics Test Chapter 14

1. The amount of a product or service that buyers are willing and able to buy at different prices is called

1. The law of demand states as prices increase demand ______, and as prices decrease demand ______

1. If a potato chips rises in price, then chip dip demand would ______

1. If a Coca-Cola rises in price, then Pepsi’s demand would ______

1. Defined as quantities that would be sold at various market prices

1. The Law of Supply states as prices increases so quantity supplied ______and as prices decreases so quantity supplied ______

1. If the cost of cotton increase, the quantity supply of T-shirts would ______

1. If productivity in a factory increases, the quantity supply ______

1. If government regulations increase, the quantity supply ______

1. The ______is the price at which the buyers and sellers agree to trade.

1. A person who starts a business is called a(n) ______

1. The main reason why somebody would start a business is the hope of earning a ______.

1. A business that is owned by single individual is called ______

1. A business in which there are multiple owners is called a ______

1. A business that is separate from people who own it and legally acts a single person is called ______

1. Share of a corporation is called a ______

1. Corporations sell stock to the public to raise ______

1. The most common organization of business is a ______

1. Which type of business organization has limited liability?

Draw the supply and demand curve by using the information below, and then use the graph to answer the questions below

USE THE GRAPH AND MARKET SCHEDULE TO ANSWER THE FOLLOWING:

1. Estimate the following
2. What is the market price ______
3. What is the quantity supplied/demanded at the market price ______
4. What would be Quantity Supplied at 1.75 dollars? ______
5. What would be Price if Quantity Demanded is 600 units? ______
6. If the pizza store decided to sell the slices at 2.50dollar
7. The quantity demanded at that price is ______units
8. The quantity supplied at that price is ______units
9. This situation has created a shortage/surplus (circle one)
10. What is the quantity of the shortage or surplus ______
11. If the pizza store decided to sell the slices at 0.50 dollars
12. The quantity demanded at that price is ______units
13. The quantity supplied at that price is ______units
14. This situation has created a shortage/surplus (circle one)
15. What is the quantity of the shortage or surplus ______?

1. The biggest conflict between workers and entrepreneurs is over ______

1. ______are organizations of workers that seek to improve wages and working conditions and to protect members’ rights

1. ______is the process by which representatives of the unions and business try to reach agreement about wages and working conditions.

1. Owners shut down the company is called a ______

1. Workers refuse to work unless employers meet certain demands is called a ______

1. Today, our society is moving from manufacturing industries to ______oriented businesses

1. Many workers who are laid off today do not have the necessary ______for service-related jobs

1. List one disadvantage of a Sole Proprietorship

1. List one advantage of a Sole Proprietorship

Look at the graph below and answer the questions

1. In which box would you place the following:
2. Goods and Services produced for customers ______
3. Land, Capital and Labor ______
4. Wages, Interest, Rent, Profit ______
5. Customers giving businesses money for goods and services ______
6. Money given to individuals by businesses in exchange for labor is called ______
7. Money given to individuals by businesses in exchange for land is called ______
8. Money given to individuals by businesses in exchange for capital is called ______