when the selling price of a good goes up, what is the relationship to the quantity supplied?

it becomes practical to produce more goods

which is the best example of the law of supply?

sandwich shop make more when the price of sandwiches goes up

What happens to a market in equilibrium when there is an increase in supply?

Quantity supplied exceeds quantity demanded ->price drops

on what type of goods do governments generally place price ceilings

those that are essential but too pricey$$ for some consumers

a shift in the demand curve means which of the following?

a change in demand at every price

why did US govt use rationing for some foods and consumer goods during WWII?

to guarantee each civilian a standard of living during a war

What happens when wages are set above the equilibrium level by law?

Firms employ fewer workers than they would've before.

What is the basic principle of the law of demand?

when a good's price is lower, people will buy more of it

What are inferior goods?

goods for which the demand falls when income rises

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econ unit 2

25 termsStudBud Administration923 plays

microeconomics

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Questions 25

Answers

1
what kind of table lists the quantity of a good that a person will buy at different prices?
market demand schedule
demand schedule
market demand curve
demand curve
2
what term is best represented by this graph, and resulting in a decrease in supply?
government deregulating this market
new technology for production of it
excise taxes
more suppliers entering the market
3
when a consumer is willing and able to buy a good or service what condition is reached?
elasticity
allocation
demand
consumption
4
the price ceiling used to control the price of housing in NY City and other cities is called _?
equilibrium price
rent control
housing control
rent abatement
5
Which of the following would decrease supply?
subsidy
more suppliers enter the market
excise taxes
technology
6
what does the blue line on the graph represent?
excess demand
demand curve
supply curve
excess supply
7
what is it called when buyers will purchase exactly as much as sellers are willing to sell?
excess demand
supply and demand
price floor
equilibrium
8
What do you have at $1.00 on the graph?
excess supply
excess demand
an amount above market equilibrium price
a surplus
9
what shows the quantities of products demanded at each price by all consumers in the market?
an elasticity and consumption list
a market demand schedule
a market pricing list
a schedule of consumer prices
10
when the selling price of a good goes up, what is the relationship to the quantity supplied?
the profit made on each item goes down
the cost of production goes down
it becomes practical to produce more goods
there is no relationship between the two
11
which is the best example of the law of supply?
milling company builds a new factory to process flour
catering company buys a new dishwasher to make it easier
Jack buys more Christmas gifts for his favorite econ teacher
sandwich shop make more when the price of sandwiches goes up
12
Which of the following would increase supply?
subsidy
excise taxes
regulations
restrictions
13
which of the following is a fixed cost for a store?
inventory
rent
advertising
short term workers
14
What happens to a market in equilibrium when there is an increase in supply?
Quantity supplied exceeds quantity demanded ->price drops
Excess supply so a producer will make less of the good.
Undersupply means the good will become very expensive.
Quantity demanded exceeds quantity supplied ->price drops.
15
on what type of goods do governments generally place price ceilings
those that are essential and cheap
those that are essential but too pricey$$ for some consumers
those that are not necessary but have become customary
ones that are cheap but could become more pricey with out it
16
a shift in the demand curve means which of the following?
a change in consumer income
a rise in prices
a decrease in both price and quantity demanded
a change in demand at every price
17
why did US govt use rationing for some foods and consumer goods during WWII?
to earn more money to support the military
because the English govt had also decided on rationing
to keep sellers from raising prices on necessary goods
to guarantee each civilian a standard of living during a war
18
what is it called when the government uses some tool other than money to allocate goods
supply management
resource allocation
rationing
disequilibrium
19
what could another name for the price floor on this graph be?
excess supply
excess demand
how low can you go?
price ceiling
20
What happens when wages are set above the equilibrium level by law?
Firms continue to hire more workers but give each less hours
Firms employ more workers than they would've before.
Firms employ fewer workers than they would've before.
Firms tend to try and break the law and pay less.
21
What effect does import restrictions have on prices?
raises prices
prices hit rock bottom
lowers prices
no effect, prices stay the same
22
What is the basic principle of the law of demand?
the higher the price, the more people will want the good
services are of interest in the same way that goods are
everyone has a limited income that they will spend
when a good's price is lower, people will buy more of it
23
what is the effect of excise taxes on supply?
they decrease supply
they increase supply
makes the product disappear off the store shelves forever
makes consumers want to triple their demand for a product
24
What are inferior goods?
goods for which the demand falls when income rises
goods that no one wants to buy
goods that are not well produced
goods for which the demand rises when income falls
25
what kind of market(competiton) runs most efficiently when one large firm supplies all the output?
monopolistic competition
perfect competition
oligopoly
natural monopoly

econ unit 2 Flashcards | StudBud