To be effective a price ceiling must be

Set below the equilibrium price

Households, Businesses, and Government

Are the three economic actors in the circular flow

Which of the following would take place in the Resource Market?

The Atlanta Zoo buys bananas to feed Hungry the Hippo.

What might cause the graph below for Coca-Cola?

Sugar syrup goes up in price for Coca-Cola.

The change from S to S1 demonstrates that now

Producers are willing to make more at all possible prices

In what case would the government want to mandate a price of $1.50?

To make sure producers make profit off of sold goods

Producers expect the price of a product to increase in the future. What is the consequence?

Supply of the product shifts left short-term

Government decides to lower personal income taxes, this would most likely cause

The demand curve to shift right

Which of the following would take place in the Product Market?

Mrs. Jones buys a Samsung Galaxy phone

At the market clearing price

There are an equal number of buyers and sellers

The law of supply states that

Producers will make more at higher prices

Which is true regarding the graph?

Equilibrium quantity is increasing.

Government increases regulation of the tobacco industry, what is likely to occur?

Supply decreases, Quantity Demanded decreases

Quantity supplied of sombreros would most likely increase if

The price of sombreros increased

Which of the following would be a microeconomic decision?

Whole foods stops carrying canned foods.

The law of demand states that

Consumers will buy more at lower prices

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Microeconomics1 (plus fundamentals)

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Questions 41

Answers

1
To be effective a price ceiling must be
Set at the equilibrium price
Without a true equilibrium price
Set above the equilibrium price
Set below the equilibrium price
2
Consumers expect the price of ab rollers to soar, what happens?
Demand for ab rollers increase
Demand for ab rollers decrease
Quantity demanded of ab rollers increase
Quantity demanded of ab rollers decrease
3
Households, Businesses, and Government
Establish equilibrium prices
Are the three economic actors in the circular flow
Establish price floors and ceilings
None of these
4
Which of the following would take place in the Resource Market?
The Atlanta Zoo buys bananas to feed Hungry the Hippo.
Marcy buys bananas at the supermarket.
Mr. Jones buys a banana split from Dairy Queen.
None of these
5
Popeye moves away from Candyland, because they weren't buying spinach, this is an example of
Elasticity of Demand
Opportunity Cost
Economic Interdependency
Law of Supply & Demand
6
What might cause the graph below for Coca-Cola?
A study finds that Coca-Cola causes obesity.
Coca-Cola gets a faster bottling machine.
Sugar syrup goes up in price for Coca-Cola.
A famous celebrity endorses Coca-Cola.
7
Which arrows represent Apple selling an Iphone to Mrs. Pearce?
4,7
3,8
6,5
1,2
8
The change from S to S1 demonstrates that now
Producers are willing to make more at all possible prices
Producers are willing to make less at a specific price
Producers are willing to make less at all possible prices
Producers are willing to supply more at specific prices
9
Who determines the market clearing price of Catsup?
Government
Sellers of Catsup
Buyers and Sellers of Catsup
Buyers of Catsup
10
Hal's pays Happy to make pizza, Happy pays taxes for the roads Hal's delivers on, this is
Voluntary Exchange
Microeconomics
Economic Interdependence
Government subsidizing industry
11
The term "firm" would describe
A consumer
A household
A government body
A business
12
In what case would the government want to mandate a price of $1.50?
To meet the equilibrium price
To make sure that producers are able to sell all supplies
To make products cheaper for the consumer
To make sure producers make profit off of sold goods
13
Which would cause a shift to the right in supply?
All of these
Increased worker education
Increased costs in productive resources
Consumers increase their preference for the good
14
Producers expect the price of a product to increase in the future. What is the consequence?
Demand for the product shifts right short-term
Demand of the product shifts left short-term
Supply of the product shifts right short-term
Supply of the product shifts left short-term
15
Chester increases the price of Cheetos, what happens to Cheez Doodles?
Supply shifts to the left
Supply shifts to the right
Demand shifts to the left
Demand shifts to the right
16
This picture best exemplifies
Capital Goods
Complimentary Goods
Substitute goods
Durable Goods
17
Which arrows represent money flow?
None of these
4,7
3,8
6,5
18
The minimum wage would be an example of
Government Deregulation
A price ceiling
A price floor
A value-added tax
19
Which is a determinant of supply?
Cost of Productive Resources
Taste/Preference
Income
Consumer expectations
20
A demand curve would typically slope
Upward
Vertical
Horizontal
Downward
21
Government decides to lower personal income taxes, this would most likely cause
The supply curve to shift left
The demand curve to shift left
The demand curve to shift right
The supply curve to shift to the right
22
A price floor above the equilibrium price would lead to
A surplus
A shortage
A market clearing price
None of these
23
Which of the following would take place in the Product Market?
Mrs. Jones buys a Samsung Galaxy phone
Acura purchases new tires from Toyo for its cars
Mr. Jones sells timber to Georgia Pacific
Burger King buys a new grill
24
Teams buy more helmets because of breast cancer awareness month, this describes a change in
Quantity Demanded
Supply
Quantity Supplied
Demand
25
At the market clearing price
There are an equal number of buyers and sellers
Producers will make the most of a good
There will be a surplus of goods
Consumers will refuse to buy the good
26
The law of supply states that
People will buy less at higher prices
Producers will make more at lower prices
Producers will make more at higher prices
People will buy more at lower prices
27
What would be the result of a government mandated price of 1.25?
A surplus of 200
A shortage of 200
A shortage of 100
A surplus of 100
28
The price of milk triples, what happens to the equilibrium price for cereal?
It goes up.
It goes down.
Not enough information.
It is not affected.
29
Which is true regarding the graph?
Supply is decreasing.
All of these.
Equilibrium Price is increasing.
Equilibrium quantity is increasing.
30
When supply is low and demand is high
the price is low
the equilibrium quantity is lower
the equilibrium quantity is higher
the price is high
31
What does Papa's Pizza receive in the Product Market?
Pizza
None of these
Money
Cheese
32
Government increases regulation of the tobacco industry, what is likely to occur?
Supply decreases, Quantity Demanded decreases
Demand increases, Quantity Supplied increases
Supply increases, Quantity Demanded Decreases
Demand decreases, Quantity Supplied decreases
33
Genetically modified bees are able to produce more honey so the ____ of honey shifts ______.
Supply, Right
Supply, Left
Demand, Right
Demand, Left
34
High prices act as an indicator for
Consumers to decrease consumption
Producers to increase production
Both of these
None of these
35
There is low demand for a product, what would encourage producers to still make it?
A price floor
If it is elastic
A price ceiling
If it is inelastic
36
Quantity supplied of sombreros would most likely increase if
Mexico required all farmers to wear sombreros
Mexico won the world cup
The cost of sombrero straw decreased
The price of sombreros increased
37
Which of the following would be a microeconomic decision?
The federal reserve attempts to raise interest rates.
Congress must decide whether to pass a higher minimum wage.
Whole foods stops carrying canned foods.
THe President has to decide whether to increase taxes.
38
The price of milk triples, what happens to cereal?
Demand decreases
Supply increases
Quantity Demanded increases
Quantity Supplied Increases
39
Pick the ________ answer.
Wrong
Incorrect
None of these
Right
40
When supply goes up and demand stays the same, equilibrium quantity __ & equilibrium price ___
Rises, RIses
Falls, Falls
Falls, Rises
Rises, Falls
41
The law of demand states that
Consumers will buy more at lower prices
Producers will make more at high prices
Producers will make more at low prices
Consumers will buy more at higher prices

Microeconomics1 (plus fundamentals) Flashcards | StudBud