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192. The freedom of people to decide where they want to work and live and what they want to
buy or sell are basic capitalist rights under:
193. The freedom of people to buy, sell, and use land, buildings, machinery, and inventions are
basic capitalist rights under:
194. A free market is one in which decisions about what to produce and in what quantities are
made by:
195. In a free-market economic system, the mechanism of __________ is the key determinant
used to signal to producers what to produce and how much to produce.
196. The quantity of a good or service that producers are willing to sell at different prices
during a specific time period is known as the:
197. A simple supply curve shows that an increase in the price of a good will cause the
quantity supplied to:
198. A simple supply curve shows a relationship between the:
199. A(n) _____________ curve shows the relationship between the price of a good and the
quantity of that good people are willing and able to buy in a given time period.
200. A typical demand curve shows that:
201. When the supply curve and demand curve for a particular good are shown together on a
single graph, the point at which the two curves intersect identifies the:
202. When prices are free to adjust over time, in the long run, the market price of a good tends
to:
203. If a shortage exists for a good in a free-market economy, the:
204. __________ is the market situation in which there are many sellers in a market and no
seller is large enough to dictate the price of a product.
205. ___________ exists when a large number of firms produce goods that are similar but are
perceived by buyers as being different.
206. __________ exists when the entire supply of a good is controlled by a single seller.
207. An oligopoly is a market that is characterized by:
208. Which of the following statements about capitalism is the most accurate?
209. When the market price of a good is below the equilibrium price, and all other
determinants are unchanged:
210. When the market price of a good is above its equilibrium value, and all other
determinants are unchanged:
211. The markets for laundry detergents, soft drinks, and automobiles are dominated by just a
few sellers. Economists would classify these markets as examples of:
212. In most large cities there are a large number of bakeries. These bakeries produce similar,
but not identical, products. Some bakeries claim to have the best cheesecakes in town, while
others brag about their cookies or specialty breads. The bakery market in a large city is an
example of:
213. The presence of competition in free markets:
214. One of the benefits of a free market is that:
215. One of the greatest concerns associated with capitalism is that:
216. According to the box,
Spotlight on Small Business
, when Florida's orange crop was
significantly affected by a dry spell and gnat swarms:
217. Patrick lives in a nation whose government embraces capitalism. He owns his own home
and car, as well as his own business and building. Patrick maintains ownership due to:
218. The market price of apples is currently rising. In a free-market economy, the most likely
explanation of this price change is that:
219. A rare and scarce earth metal known as Neodymium is used in many consumer and
military products including smartphones, smart bombs, laptop computer monitors, and
electric/hybrid cars. In one year's time, the price of Neodymium has gone from $19/lb. to $129/lb.
Under these circumstances and the fact that at least 1 kilogram is used in each electric car that
is assembled, a graph of the supply and demand for this product would show:
220. The price of iPhones™ is falling. In a free-market economic system where everything else
is equal, the most likely explanation is:
221. Reality Entertainment, Inc., is a major producer of reality TV programming. The company
faces fierce competition from three other major producers of similar shows. Together, Reality
Entertainment and its three rivals control almost the entire reality TV programming. Their market
environment is called:
222. On its website, Papa John's Pizza compares itself to the competition with the following
message: "better ingredients, better pizza." The company wants to achieve:
223. Which of the following statements most accurately identifies a limitation of the free-
market economic system?
224. A major premise of a socialist system is:
225. A major benefit of socialism is the:
226. Under the __________ system there is very little incentive to work hard or to produce
quality goods or services.
227. Under the __________ system the number of choices in the market is directly related to
government involvement in markets.
228. There are some restrictions on freedom of assembly and freedom of speech under a
____________ system.
