© Mark E. Damon - All Rights Reserved © Mark E. Damon - All Rights Reserved Round 1 Final Jeopardy $ $ p i l l i h P D a p h n e $ y h t a K © Mark E. Damon - All Rights Reserved Principals of Econ. 1 Origins of Econ. 2 Adam Smith Supply and Demand 3 Price Controls 5 4 Yo Mama 6 $100 $100 $100 $100 $100 $100 Final Jeopardy $200 $200 $200 $200 $200 $200 Scores $300 $300 $300 $300 $300 $300 $400 $400 $400 $400 $400 $400 $500 $500 $500 $500 $500 $500 © Mark E. Damon - All Rights Reserved $200 Business firms wish to sell their products at high prices. Households wish to buy products at low prices. In a market economy this conflict of interest is resolved by: © Mark E. Damon - All Rights Reserved $200 What is competition? Scores © Mark E. Damon - All Rights Reserved $400 A newspaper reports that the price of gasoline increased and the quantity sold decreased. In a competitive market how would this affect the supply of gasoline? © Mark E. Damon - All Rights Reserved $400 It would decrease the supply of gasoline? Scores © Mark E. Damon - All Rights Reserved $500 Why do medical doctors generally earn more than farmers? © Mark E. Damon - All Rights Reserved $500 Medical doctors are scarcer given the demand for their services. Scores © Mark E. Damon - All Rights Reserved $100 In a competitive market, the price of a product is $5.00. If the government passes a law that sets a minimum price of the product at $6.00, this change will have what affect on the product? © Mark E. Damon - All Rights Reserved $100 This price floor will lead to a surplus of the product? Scores © Mark E. Damon - All Rights Reserved © Mark E. Damon - All Rights Reserved $200 Which would most likely increase the quantity of gasoline sold in a competitive market? a. An increase in the price of crude oil b. A decrease in the price of cars c. A decrease in the income of consumers d. An increase in taxes on gasoline products © Mark E. Damon - All Rights Reserved $200 What is “b” a decrease in the price of cars? Scores © Mark E. Damon - All Rights Reserved 300 In a competitive market, the price of shoes is likely to be increased by: a. A decrease in the supply of shoes b. a decrease in the demand for shoes c. More capital investment in shoe factories d. New machines reducing the cost of shoe production © Mark E. Damon - All Rights Reserved 300 What is “a’ a decrease in the supply of shoes? © Mark E. Damon - All Rights Reserved $400 The saying “resources are limited relative to human wants” is another way of saying that resources are ________? © Mark E. Damon - All Rights Reserved $400 What is scarce? Scores © Mark E. Damon - All Rights Reserved $500 When economists say, “there is no such thing as a free lunch,” they are referring to the fact that: © Mark E. Damon - All Rights Reserved $500 What is everything has a cost? Scores © Mark E. Damon - All Rights Reserved $100 Some people in the U.S. are very wealthy, while some people are very poor. This statement reflects in which the U.S. economy has answered which of the following basic questions: what, how, how much, or for whom to produce? © Mark E. Damon - All Rights Reserved $100 What is for whom to produce? Scores © Mark E. Damon - All Rights Reserved $200 True or false statement and why: There is less agreement about which socioeconomic goals are desirable. © Mark E. Damon - All Rights Reserved $200 True. Socioeconomic goals are based on society’s values that not everyone can agree with nor how the government should go about pursuing them… Scores © Mark E. Damon - All Rights Reserved $300 True or false, market economies, centrally directed economies, traditional economies all must contend with answering the three basic economic problems (what, how, how much and for whom to produce) © Mark E. Damon - All Rights Reserved $300 What is true? Scores © Mark E. Damon - All Rights Reserved $400 An economic system primarily dependent upon the actions of independent buyers and sellers is called a: © Mark E. Damon - All Rights Reserved $400 What is a market economy, a free enterprise economy or a capitalist economy? Scores © Mark E. Damon - All Rights Reserved $500 When goods that people want are in short supply, market economies ration the available goods by________. A command economy will ration available goods by __________? © Mark E. Damon - All Rights Reserved $500 What is adjusting prices and making people wait in line? Scores © Mark E. Damon - All Rights Reserved $100 The difference between a centrally directed economy and a market economy is in the way that ________decisions are made. © Mark E. Damon - All Rights Reserved $100 What are economic decisions? Scores © Mark E. Damon - All Rights Reserved $200 What type of system or mechanism do capitalist economies depend upon for the allocation of resources and finished goods? © Mark E. Damon - All Rights Reserved $200 What is the price system. Scores © Mark E. Damon - All Rights Reserved $300 The price system in market economies answer the three basic questions in economic questions. Name them again… © Mark E. Damon - All Rights Reserved $300 What is for whom to produce, what to produce, and how to produce? Scores © Mark E. Damon - All Rights Reserved $400 The following conditions must occur in order for what type of economy to work: (1) people must follow their self interest, (2) people must be motivated to make a profit, and (3) people must be free to buy and sell as choose. © Mark E. Damon - All Rights Reserved $400 What is a Market Economy? Scores © Mark E. Damon - All Rights Reserved $500 State why this statement is either true or false about a market economy: “goods and services in short supply are rationed on the equitable basis of first come, first served.” © Mark E. Damon - All Rights Reserved $500 False. Absent price controls, goods in short supply in a market economy usually go to highest bidder. Scores © Mark E. Damon - All Rights Reserved $100 True or false, one socioeconomic goal for a nation with a thriving market economy is to create a society with economic freedom for people to choose what they want to buy and sell. © Mark E. Damon - All Rights Reserved $100 What is True? Scores © Mark E. Damon - All Rights Reserved $200 Why are butchers motivated to produce hamburgers in a market economy? © Mark E. Damon - All Rights Reserved $200 What is because butchers can make profits selling hamburgers (and provide for their families). Scores © Mark E. Damon - All Rights Reserved $300 Through the actions of individual buyers and sellers motivated to do what is best for themselves does this kind of economy answer the three basic questions. © Mark E. Damon - All Rights Reserved $300 What is a market economy? Scores © Mark E. Damon - All Rights Reserved $400 The lure of profits determines what gets produced in what kind of economic system. This is not a “trick” question. © Mark E. Damon - All Rights Reserved $400 What is a market economy? Scores © Mark E. Damon - All Rights Reserved $500 Why are goods and services produced in a market economy? © Mark E. Damon - All Rights Reserved $500 Because people want to make profits for themselves (and feed their families)? Scores © Mark E. Damon - All Rights Reserved 100 In a market economy, the opportunity to make a profit for providing a good or a service is called an ________ © Mark E. Damon - All Rights Reserved 100 What is an incentive? © Mark E. Damon - All Rights Reserved $200 Shortages will result in higher prices, which will produce an incentive for more production resolves the problem of ________. Scores © Mark E. Damon - All Rights Reserved $200 What are shortages? © Mark E. Damon - All Rights Reserved 300 The price at which buyers and sellers are just willing to buy the same amount that the sellers are willing to sell is called ______? © Mark E. Damon - All Rights Reserved 300 What is the equilibrium price? © Mark E. Damon - All Rights Reserved © Mark E. Damon - All Rights Reserved $400 If the price of oranges is below the equilibrium price, then what will happen to the supply and price of oranges? Scores © Mark E. Damon - All Rights Reserved $400 There will be a shortage of oranges and the price of oranges will increase © Mark E. Damon - All Rights Reserved $600 If the price of beef is above the equilibrium price, then what will happen to the supply and price of beef? Scores © Mark E. Damon - All Rights Reserved $600 There will be a surplus of beef and the price of beef will decrease © Mark E. Damon - All Rights Reserved $800 True or false, in a freely competitive market, prices will adjust to remove surpluses and shortages. Scores © Mark E. Damon - All Rights Reserved $800 What is true? © Mark E. Damon - All Rights Reserved $1000 Many city governments impose rent controls on apartment owners, keeping the price of an apartment below the equilibrium price. What will happen to the supply of apartments available on the market? Scores © Mark E. Damon - All Rights Reserved $1000 There will be a shortage of apartments? © Mark E. Damon - All Rights Reserved $200 True or false, an equilibrium price clears the market. Scores © Mark E. Damon - All Rights Reserved $200 What is true? © Mark E. Damon - All Rights Reserved $400 Buyers and sellers reacting to shortages and surpluses causes competitive markets to move towards what price where supply and demand meets? Scores © Mark E. Damon - All Rights Reserved $400 What is the equilibrium price? © Mark E. Damon - All Rights Reserved Famous Economists Scores Final Jeopary Question © Mark E. Damon - All Rights Reserved Who is the author of The Wealth of Nations? © Mark E. Damon - All Rights Reserved Who is Adam Smith? Scores