Transcript Invisible Hand Review

© Mark E. Damon - All Rights Reserved
© Mark E. Damon - All Rights Reserved
Round 1
Final
Jeopardy
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© Mark E. Damon - All Rights Reserved
Principals of
Econ.
1
Origins of
Econ.
2
Adam Smith
Supply and
Demand
3
Price Controls
5
4
Yo Mama
6
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Final
Jeopardy
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Scores
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$400 $400
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$500
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$200
Business firms wish to sell their
products at high prices.
Households wish to buy products
at low prices. In a market
economy this conflict of interest
is resolved by:
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$200
What is competition?
Scores
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$400
A newspaper reports that the
price of gasoline increased and
the quantity sold decreased. In a
competitive market how would
this affect the supply of
gasoline?
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$400
It would decrease the supply of
gasoline?
Scores
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$500
Why do medical doctors
generally earn more than
farmers?
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$500
Medical doctors are scarcer
given the demand for their
services.
Scores
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$100
In a competitive market, the price
of a product is $5.00. If the
government passes a law that
sets a minimum price of the
product at $6.00, this change will
have what affect on the product?
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$100
This price floor will lead to a
surplus of the product?
Scores
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$200
Which would most likely increase the
quantity of gasoline sold in a competitive
market?
a. An increase in the price of crude oil
b. A decrease in the price of cars
c. A decrease in the income of
consumers
d. An increase in taxes on gasoline
products
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$200
What is “b” a decrease in the
price of cars?
Scores
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300
In a competitive market, the
price of shoes is likely to be
increased by:
a. A decrease in the supply of
shoes
b. a decrease in the demand
for shoes
c. More capital investment in
shoe factories
d. New machines reducing the
cost of shoe production
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300
What is “a’ a
decrease in the
supply of shoes?
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$400
The saying “resources are limited
relative to human wants” is
another way of saying that
resources are ________?
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What is scarce?
Scores
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$500
When economists say,
“there is no such thing
as a free lunch,” they
are referring to the fact
that:
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$500
What is everything has a cost?
Scores
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$100
Some people in the U.S. are very
wealthy, while some people are
very poor. This statement
reflects in which the U.S.
economy has answered which of
the following basic questions:
what, how, how much, or for
whom to produce?
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$100
What is for whom to produce?
Scores
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$200
True or false statement
and why: There is less
agreement about which
socioeconomic goals are
desirable.
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True. Socioeconomic goals are
based on society’s values that
not everyone can agree with nor
how the government should go
about pursuing them…
Scores
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$300
True or false, market economies,
centrally directed economies,
traditional economies all must
contend with answering the three
basic economic problems (what,
how, how much and for whom to
produce)
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What is true?
Scores
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$400
An economic system
primarily dependent upon
the actions of independent
buyers and sellers is called
a:
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What is a market economy, a free
enterprise economy or a capitalist
economy?
Scores
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$500
When goods that people want are
in short supply, market
economies ration the available
goods by________. A command
economy will ration available
goods by __________?
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What is adjusting prices and
making people wait in line?
Scores
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$100
The difference between a
centrally directed economy and a
market economy is in the way
that ________decisions are made.
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What are economic decisions?
Scores
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$200
What type of system or
mechanism do capitalist
economies depend upon for the
allocation of resources and
finished goods?
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What is the price system.
Scores
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$300
The price system in market
economies answer the three
basic questions in economic
questions. Name them again…
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What is for whom to produce,
what to produce, and how to
produce?
Scores
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$400
The following conditions must
occur in order for what type of
economy to work: (1) people
must follow their self interest, (2)
people must be motivated to
make a profit, and (3) people
must be free to buy and sell as
choose.
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$400
What is a Market Economy?
Scores
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$500
State why this statement is either
true or false about a market
economy: “goods and services in
short supply are rationed on the
equitable basis of first come, first
served.”
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False. Absent price controls,
goods in short supply in a market
economy usually go to highest
bidder.
Scores
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$100
True or false, one socioeconomic
goal for a nation with a thriving
market economy is to create a
society with economic freedom
for people to choose what they
want to buy and sell.
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$100
What is True?
Scores
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$200
Why are butchers motivated to
produce hamburgers in a market
economy?
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What is because butchers can
make profits selling hamburgers
(and provide for their families).
Scores
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$300
Through the actions of individual
buyers and sellers motivated to
do what is best for themselves
does this kind of economy
answer the three basic questions.
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What is a market economy?
Scores
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$400
The lure of profits determines
what gets produced in what kind
of economic system. This is not
a “trick” question.
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What is a market economy?
Scores
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$500
Why are goods and services
produced in a market economy?
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Because people want to make
profits for themselves (and feed
their families)?
Scores
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100
In a market
economy, the
opportunity to
make a profit for
providing a good
or a service is
called an ________
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100
What is an
incentive?
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Shortages will result in higher
prices, which will produce an
incentive for more production
resolves the problem of
________.
Scores
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$200
What are shortages?
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300
The price at which buyers
and sellers are just willing
to buy the same amount
that the sellers are willing
to sell is called ______?
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300
What is the
equilibrium price?
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$400
If the price of oranges is below
the equilibrium price, then what
will happen to the supply and
price of oranges?
Scores
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$400
There will be a shortage of
oranges and the price of oranges
will increase
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$600
If the price of beef is above the
equilibrium price, then what will
happen to the supply and price of
beef?
Scores
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$600
There will be a surplus of beef
and the price of beef will
decrease
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$800
True or false, in a freely
competitive market, prices will
adjust to remove surpluses and
shortages.
Scores
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$800
What is true?
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$1000
Many city governments impose
rent controls on apartment
owners, keeping the price of an
apartment below the equilibrium
price. What will happen to the
supply of apartments available on
the market?
Scores
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$1000
There will be a shortage of
apartments?
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$200
True or false, an equilibrium price
clears the market.
Scores
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$200
What is true?
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$400
Buyers and sellers reacting to
shortages and surpluses causes
competitive markets to move
towards what price where supply
and demand meets?
Scores
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$400
What is the equilibrium price?
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Famous Economists
Scores
Final
Jeopary
Question
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Who is the author of The Wealth
of Nations?
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Who is Adam Smith?
Scores