1. Midterm Review
Honors

2. The added benefit received from the purchase or use of the next unit of a product
Marginal utility

3. What does a production possibilities frontier demonstrate?
Total production combination of any two products
The opportunity cost of increasing production of one in terms of the floss of the other

4. The arrangement of labor so that each worker is doing fewer tasks than before:
Division of flavor

5. Increased productivity
What does specialization lead to?
Increased productivity

6. Where is labor bought and sold?
Factory market

7. What is the key benefit of the free enterprise system characteristic of private property rights?
Collateral for entrepreneurs to qualify for bank loans to start new businesses

8. What type of business structure has unlimited life?
Corporation

9. The private ownership of the factors of production:
Capitalism

10. If the price of a product increased, what would happen to the demand of those things considered its compliment?
Shift

11. What is the likely elasticity of demand for cocaine?
inelastic

12. Of what business type is double taxation is a disadvantage?
Corporation

13. Under what conditions of demand would a monopoly be the most free to raise prices?
Inelastic demand

14. What 4 benefits do entrepreneurs provide?
Jobs, tax receipts, products, philanthropy

15. Which economic system has the lowest standard of living?
Traditional

16. Which economic system fails most to provide for the poor and sick?
Market

17. What happens to market price when demand increases?
Price increases

18. What happens to total revenue when prices increase in an elastic market?
TR falls

19. What’s the elasticity of a product when its price increases 17% and the quantities demanded decreases 8%?
Inelastic

20. The fundamental economic issue that requires societies to make production decisions:
Scarcity

21. You go to a grocery store to buy eggs. They’re out. Why?
Shortage (the store didn’t order enough to meet demand)

22. A fall in the general price level:
Deflation

23. As prices increase, consumers buy less. What does this reflect?
Law of Demand

24. The purchase of a product is important and has substitutes that are not very pleasing. What’s its elasticity of demand?
Inelastic

25. If a company is able to cut costs, what will happen to the supply of products it sells?
Supply more

26. The worth of something as measured by its price is called:
Value

27. What is the economic system that provides the most consumer satisfaction?
Market

28. Which economic goal reflects the idea that Americans expect government to provide help in extreme cases?
Economic stability

29. What is the study of the production, use, and allocation of scarce resources that have alternative uses
Economics

30. Which business type can raise the quickest capital?
Corporation

31. What would the likely supply elasticity be for ski resorts?
Inelastic

32. What is the elasticity of supply of the following graph?$4 $2 1 2
Unit Elastic

33. Earth’s resources are finite, even though man’s desire to use them in a variety of ways is almost infinite. This condition is known as:
Scarcity