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Unit 3: Microeconomics Flashcards | StudBud
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Unit 3: Microeconomics
Unit 3: Microeconomics
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Questions
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Answers
1
Market Equilibrium is reached when what occurs?
Price Increases
Quantity Supplied exceeds Quantity Demanded
Quantity Demanded exceeds Quantity Supplied
Quantity Supplied equals Quantity Demanded
2
Which of the following would NOT cause a shift in the demand curve for a product?
Change in the price of the product
An increase or decrease in the number of consumers
An increase or decrease in the income level of consumers
Change in the price of related goods
3
Which of the following products are MOST likely to have Inelastic demand?
Fur Coat
Gasoline
Under Armor Shoes
Oreo Cookies
4
A leftward shift of a supply curve for avocados might be caused by
many new avocado farmers enter the market
an increase in the minimum wage that MUST be paid to avocado pickers
an improvement in avocado picking techniques
an increase in consumer incomes
5
What is this graph showing?
Decrease in Supply
Decrease in quantity supplied
Increase in Supply
Increase in quantity supplied
6
When Price is set at the point at which Quantity supplied
<
Quantity demanded
Surplus
Shortage
Profit
Complementary Good
7
Which is NOT a shifter of supply
Change in taste and preferences
Changes in technology
Cost of inputs/resources
Change in taxes, regulations or subsidies
8
What market situation is created from a price ceiling?
Market Surplus
Market Shortage
Equilibrium
9
Looking at the picture, what is the equilibrium price?
$40
$60
$20
10
Which of these would cause a supply curve for hot dog buns to shift to the left?
a decrease in the price of hot dog buns
increase in the price of hot dog buns
An increase in the price of flour (ingredient in buns)
new bun making technology to make the process more efficient
11
Which of the following would NOT shift the supply curve for iphones?
An increase in the price of plastic, an input in the production of iphones
An increase in the price of iphones
An improvement in the technology used to produce iphones
A decrease in the number of sellers of iphones
12
The ability and willingness to purchase a good or service is known as
Supply
Demand
Utility
Equilibrium
13
The supply curve is
upward sloping
downward sloping
irregular
backward sloping
14
Looking at the graph, what is the situation with a price of $60?
Surplus of 100
Shortage of 100
Shortage of 50
Surplus of 50
15
A small increase in the price of a product causes a significant decrease in quantity demanded. What type of demand is it
Unit Elastic
Shortage
Inelastic
Elastic
16
Competitive "free" markets establish prices by
passing laws to mandate prices
Hiring government economists to determine prices
forming committees to set price goals
Letting prices adjust themselves
17
Which of these would result from the repeal of an item's subsidies?
A decrease in the price of that item
A leftward shift of that item's supply curve
An increase in reliance upon government regulation
A rightward shift of that item's supply curve
18
Federal minimum wage laws are an example of a
Market Equilibrium
Market Shortage
Price Floor
Price Ceiling
19
A monopoly that is based on the ownership or control of a manufacturing method, process or other scientific advance is a
government monopoly
natural monopoly
technological monopoly
geographic monopoly
20
The supply of a product normally decreases if
taxes are increased on the product
cost of inputs/resources decreases on the product
advances in technology lead to more efficient methods of making the product
subsidies are given to the product
21
A product that can be used in place of another good is
Inelastic
Substitute Good
Unit Elastic
a Complementary Good
22
This is a government payment to a supplier, which will cause a rightward shift of the supply curve
Regulation
Revenue Tax
Subsidy
Sin Tax
23
Perfect competition is characterized by all of the following EXCEPT
well-informed buyers and sellers
a large number of buyers and sellers
identical products
sellers acting together to set prices
24
The law of demand states that as the price increases then
Demand Decreases
Quantity demanded increases
Quantity demanded decreases
Demand Increases
25
For most products and services, increased price results in
demand for fewer products
demand for more products
reduced demand for substitutes
increased demand for complements
