Exam 2: Markets and Economies

When a college uses a lottery to determine who is assigned the nicest dorm room on campus, what economic question is being answered?

An economy in which economic decisions are based primarily on the interactions of buyers and sellers is known as a _____ economy.

In the circular flow diagram, what flows from households to product markets?

In a _____ economy, households own the factors of production.

Rents are paid to households in exchange for the supply of:

Cher is a struggling soybean farmer who is frustrated with low soybean prices. In the spring, rather than planting more soybeans, Cher decides to use her economic resources to grow barley instead. Cher's decision is an example of what fundamental economic question?

______ represent(s) ownership in a corporation.

The type of firm that is a distinct legal entity that is separate from the entrepreneur and other owners and can sell stock is a:

When the state of Colorado uses a lottery to determine which hunters will receive a tag to hunt mountain goats, it demonstrates which of the economic questions?

A potential disadvantage of a market economy is that:

Rent is the payment that a household receives in exchange for providing:

Define the economic resource that is known as capital, and explain how economists think of this word differently than it is used in everyday language.

What are the owners of a limited liability corporation (LLC) called?

Economists evaluate an allocation of resources as efficient if:

An economy in which economic decisions are primarily centralized, rather than based on the interactions of buyers and sellers, is known as a _____ economy.

Which of the following is NOT an example of a transfer payment?

Compare and contrast corporations and limited liability companies (LLC).

A situation is considered efficient if:

To begin her accountancy firm, Cheryl filed articles of incorporation and issued 1,000 shares of stock. Cheryl's accountancy firm is a:

An economic system under which general assemblies and councils of workers and consumers answer the three questions is: