An increase in price will

cause a decrease in quantity demanded

The law of supply states that

as price increases, the quantity supplied increases

The law of demand states that:

As price increases, the quantity demanded decreases

The point at which supply and demand meet is called

equilibrium and the "sell out price"

To test for inelasticity, change the price and see

if total revenue increases or decreases

The growing US debt is threatening:

young people's future well-being

If average income were to decrease this would cause:

a leftward shift in the demand curve

An increase in a resource price would

shift the supply curve leftward

studbud

Economics Semester Review part 3

20 termsStudBud Administration46 plays

A review of things we learned this semester in my class

Flashcards20 cardsFPractice quizPHost liveL

Questions 20

Answers

1
The less expensive an item is, the more likely its demand will
be inelastic
be elastic
shift to the left
shift to the right
2
Coffee and creamer are these types of goods
inferior goods
substitutes
capital goods
complementary
3
An increase in price will
cause a decrease in quantity demanded
cause an increase in demand
cause a decrease in quantity supplied
cause an increase in quantity demanded
4
The law of supply states that
as price increases, the quantity supplied decreases
as price increases, total revenue increases
as price increases, the quantity supplied increases
as price increases, total revenue decreases
5
The law of demand states that:
As price increases, the quantity demanded decreases
as price increases, total revenue decreases
as price increases total revenue increases
As price increases, the quantity demanded increases
6
Any price set above equilibrium
creates a surplus
creates a shortage
represents a gain for the consumer
represents a loss to the consumer
7
The US spends most of its annual budget on
infrastructure (roads, bridges, electrical grid, etc)
the military
education
entitlement spending
8
The point at which supply and demand meet is called
equilibrium and the "sell out price"
economic balance
equilibrium
the "sell out price"
9
Any price set below equilibrium
represents a loss to the consumer
creates a surplus
represents a gain for the supplier
creates a shortage
10
The more inelastic the demand for a good is
the steeper its slope
the less likely it is that its slope will be positive
the less steep its slope
the more likely its slope will be positive
11
To test for inelasticity, change the price and see
if the demand curve shifts left or right
if total revenue increases or decreases
if the quantity demanded changes
if marginal revenue increases or decreases
12
Military spending makes up almost 1/2 of this part of the budget but less than 1/4 of the total
Flexible spending
Obligatory spending
Discretionary spending
Mandatory spending
13
This law states that eventually the benefits of all things decline
the law of demand
the law of supply
the law of supply and demand
the law of diminishing returns
14
The portion of the budget spent on entitlements is called
obligatory spending
discretionary spending
mandatory spending
flexible spending
15
If a good has no substitutes, its demand is likely to be
elastic
inflation sensitive
inelastic
represented as a horizontal line on a graph
16
The growing US debt is threatening:
young people's future well-being
the ecosystem
all of the above
the well-being of elderly Americans today
17
If average income were to decrease this would cause:
a rightward movement along the demand curve
a leftward shift in the demand curve
a rightward shift in the demand curve
a leftward movement along the demand curve
18
An increase in a resource price would
decrease the quantity supplied
shift the supply curve leftward
increase the quantity supplied
shift the supply curve rightward
19
A change in a resource price would cause a change in
quantity demanded
demand
supply
quantity supplied
20
Swimwear is put on sale and the last swimwear is sold illustrating
a change in demand
price inelasticity
the law of demand
the law of supply

Economics Semester Review part 3 Flashcards | StudBud