Hi, please help me ASAP! Economics is not by cup of tea its hard for me please help its long sorry but its for the Unit 3 Economics Test with 15 questions.
1. In the circular flow diagram, what do households receive from factor markets?
Factors of Production
Income*
2. In what way do households receive income from labor within a resource market wages?
Rent
Wages*
3. As the price of a good or service increases, consumers will purchase a lower quantity of that good or service due, in part, to the fact that consumers cannot afford the same quantity of a good or service at a higher price. This concept is known as the _____
Income effect*
Law of supply
4. An increase or decrease in which of the following factors would cause a shift in the demand curve for a given good? Select the two correct answers.
Number of sellers
Income*
Price of related goods*
5. Which of the following satisfies the law of supply?
A decrease in price followed by a decrease in quantity supplied*
A increase in price is followed by a decrease in quantity supplied
6. Which is an example of psychological pricing? Unsure
A company sells a product for 6.99 rather than 7.00
A business places billboard ads in a heavily populated area of town, hoping to attract more consumers
7. A government official proposes taxing producers of plastic grocery bags at 10 cents per plastic bag. What effect would the tax have on the market for grocery bags?
Demand would increase
Supply would decrease*
8. Baseball cards are considered to be a normal good. This means that, as incomes rise, consumers are willing and able to purchase greater quantities of baseball cards. How would an increase in incomes be modeled in a graph of the supply and demand curves for baseball cards?
The equilibrium point would move downward along the supply curve*
The supply curve would shift to the right
9. A set of collectible dolls was very popular during the holiday season, but, as is the case with many toy fads, has dropped off significantly in the following months. A surplus of dolls now lines the shelves of retailers across the country. In the absence of government intervention, what is likely to occur?
The low price brought about by a DECREASE in demand will motivate producers to DECREASE the quantity of dolls supplied to the market*
10. Which of the following is generally true of a competitive free market economy?
It can run itself without the intervention of government*
It depends on government intervention to run effectively
11. Match the definition with the type of market structure.
- Oligopoly: A market with significant barriers to entry and a small number of price-setting firms
- Monopoly: A market with significant barriers to entry and a single price-setting firm
- Perfect competition: A market with no barriers to entry and a large number of price-taking firms
- Monopolistic competition: A market with no barriers to entry and a large number of price-setting firms
The answers to the questions above are my answers I need help with question 6 though. The questions below is where I'm stuck please help me!
12. In which market structure will you find the most variety of products?
Monopolistic competition
Oligopoly
13. Which of the following is an advantage of competition in the economy?
Fewer choices
Increased innovation
14. Which of the following is a negative externality that can occur when a company builds a new offshore oil platform?
Water pollution
New Jobs
15. Which economic problem do lemon laws try to correct and/ or avoid?
Lack of competition
Imperfect information
For question 6, the example of psychological pricing would be "A company sells a product for 6.99 rather than 7.00". This is a strategy where businesses use price points that are seen as more attractive to consumers to increase sales.
For question 12, the market structure where you will find the most variety of products is Monopolistic competition. This market structure features many firms selling similar but differentiated products, leading to a wide variety of choices for consumers.
For question 13, the advantage of competition in the economy is increased innovation. Competition encourages firms to constantly improve their products and services, leading to innovation and technological advancements.
For question 14, the negative externality that can occur when a company builds a new offshore oil platform is water pollution. Offshore oil drilling can lead to spills and leaks that can harm marine ecosystems and water quality.
For question 15, lemon laws try to correct and/or avoid the economic problem of imperfect information. Lemon laws protect consumers by providing legal remedies when they unknowingly purchase defective products, such as used cars. These laws aim to address the issue of information asymmetry between buyers and sellers.
Thank you so much Bot GPT 3.5 got 100% on my test and you answered me right away your the best finished the test less then 30min. 💕💕
The questions and answers above are for the Unit 3 test for Economics for Connections Academy Students! Hope this helps you all because it sure did help me! THANK YOU!?