1. Unit 3 Microeconomics
Review Game
SSEMI1-3

2. Review game rules
First team to raise the correct answer on their board in the air earns the point. DON’T shout out answers! First place= +6 Second place= +5 Third place= +4

3. Ready… Set… Here we go!

4. The equilibrium price, or the market clearing price, is the point at which consumer demand is ________ to the supply from businesses.

5. equal

6. The reliance on one another to provide the goods and services that people need.
Product Market
Economic interdependence
C. Factor market

7. B

8. In a market economy, ______ serves as an incentive for consumer to purchase a product.
A. Shortage
Surplus
Price

9. C

10. Solid arrows represent ________________.

11. Goods and services

12. Suppose consumers see an increase in the price of peanut butter
Suppose consumers see an increase in the price of peanut butter. We would expect A. The demand for jelly to increase B. The demand for jelly to decrease

13. B

14. The law of supply states that if businesses can charge a higher price for a good or service, then they will supply more to maximize their ________.

15. profits

16. If the price goes from $2 to $3, then the quantity supplied will increase to _______.

17. 200

18. Suppose that there is an increase in input prices
Suppose that there is an increase in input prices. We would expect supply to ___________________.

19. decrease

20. In this graph, supply is going up and price is going ________.

21. down

22. A new super computer will allow producers to lay off 1,500 works and increase production. Therefore, the supply curve will shift to the __________.

23. right

24. • Many sellers in market • Products are identical • Easy to enter and exit the market • Price takers This describes _________ Competition.

25. Perfect (Pure)

26. When buyers and sellers interact in a market, a _______________ price is determined.

27. Equilibrium

28. Equilibrium price is $______ for this product.

29. $2

30. • Many sellers in market
• Product must be different to attract consumers
• Lots of advertising
• Easy to enter and exit the market
This describes ________________ Competition.

31. Monopolistic

32. This graph shows a _____________ in quantity demanded.

33. increase

34. If the headline of a newspaper read, “Study shows orange juice causes disease,” then the demand curve for orange juice would shift to the _______.

35. Left

36. A surplus exists _______________ the equilibrium price.

37. above

38. Form of business that has low liability, access to large amounts of cash, and has the longest life span would be a ______________.

39. corporation

40. Businesses sell goods and households buy them in the ___________ market.

41. Product

42. If the government subsidizes a farm, then the production of that farm should go _______.

43. Up

44. -Income goes down -Population in a market area decreases -Price of a substitute good goes down -Price of a complimentary good goes up All of these factors would cause the demand curve to shift to the ____________.

45. Left

46. Which graph shows an increase in supply?B C D

47. Graph A

48. The law of demand states that as price goes down, the quantity demanded goes ______.

49. Up

50. ______________ competition has similar or identical products but multiple businesses that sell that product. You need a lot of advertising to distinguish your product from others.

51. Monopolistic

52. ____________ have the least liability, the most profits, but get double taxed as a business.

53. Corporations

54. One benefit of a _________ proprietorship is that you get to keep all of the profits, but you have the most liability if your business fails.

55. sole

56. A price ceiling ________ the equilibrium price causes a shortage.

57. below

58. A price ______ above the equilibrium causes a surplus.

59. floor

60. Bonus Question- 10 points
Draw a graph that shows the production of Red Sox Nation as being inefficient.