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- 1. Multiple Choice
The cost of time and information needed to carry out market exchange.
Shortage
Transaction Costs
Role of Prices
Market Costs
- 2. Multiple Choice
A minimum legal price below which a product cannot sold.
Transaction Costs
Price Cieling
Supply
Price Floor
- 3. Multiple Choice
At a given price, the amount by which quantity demanded exceeds quantity supplied; a shortage usually forces the price up
shortage
supply
Market
demand
- 4. Multiple Choice
A maximum legal selling price above which a product cannot be sold.
Consumer Surplus
Price Floor
Absolut Advantage
Price Ceiling
- 5. Multiple Choice
When quantity consumers are willing and able to buy equals the quantity producers are willing and able to sell.
Surplus
Market Equilibrium
Invisible Hand
Market exchange
- 6. Multiple Choice
It plays an important role in facilitating exchange.
Money
Barter
selling
Division of Labor
- 7. Multiple Choice
Occurs when individual workers focus on single tasks, enabling each worker to become more efficient and productive
Absolute Advantage
Specialization
Consumer Surplus
Exchange
- 8. Multiple Choice
A system of exchange in which products are traded directly for other products.
Barter
selling
Price Ceiling
Money
- 9. Multiple Choice
Organizes the production process so that each worker specializes in a separate task.
Productivity
Law of Comparative Advantage
Division of Labor
Absolute Advantage
- 10. Multiple Choice
The ability to make something using fewer resources than other producers require.
Absolute Advantage
Law of Comparative Advantage
Specialization
Productive Efficiency
- 11. Open Ended
Give the three medium of exchange.
- 12. Open Ended
How is Division of Labor possible in increasing the productivity? (10Points)
- 13. Open Ended
Briefly explain an increase in supply and a decrease in supply. (3points)
- 14. Open Ended
Briefly explain an increase in demand and a decrease in demand. (4 points)
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