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Market Equilibrium after unit 2 savag Flashcards | StudBud
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Market Equilibrium after unit 2 savag
Market Equilibrium after unit 2 savag
25 terms
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Multiple choice supply and demand and equilibrium quiz #economics #supplyanddemand
Flashcards
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Questions
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Answers
1
An improvement in product technology for a certain good leads to...
an increase in the price of the good
a shortage of the good
an increase in the demand for the good
an increase in the supply for the good
2
If prices are too high, which two will result?
an equilibrium
an excess demand
an excess supply
a surplus
3
A shortage can also be referred to as
an excess supply
an equilibrium
a surplus
an excess demand
4
Which of these might best signal car makers to cut back production?
an introduction of competitors into the market
an increase in availability of skilled workers
a fall in the cost of essential raw materials
a drop in the price consumers are willing to pay
5
The most important argument many economists make against price controls is that they are
unfair
insecure
inefficient
unstable
6
New product + low introductory price + successful advertising = ?
surplus
rationing
equilibrium
shortage
7
If both the supply and demand curves shift equally to the right,
price will increase
a surplus will result.
quantity will increse
a shortage will result
8
Which of these actions leads to a black market?
market clearing prices
price floors
price ceilings
equilibrium prices
9
Which two of these are also known as the market price?
market clearing price
equilibrium price
price ceiling
price floor
10
Milk and cereal are examples of __________ products
Complement
variable
Substitute
tasty
11
Which of the situations best represents equilibrium?
Everyone who wants milk can afford it.
The price of milk does not change much from week to week.
Milk production makes good profit for manufacturers.
The milk made equals the milk sold.
12
The purpose of rationing during World War II was to ensure that
manufacturers could make a profit.
everyone could get essential scarce goods.
workers would have an incentive to get jobs.
products would go to those who valued them most.
13
Which event in California would most likely shift the supply curve for avocados to the left?
an early frost accompanied by ice storms
an influx of new low-wage workers
rise of mangos as a popular food item
evidence that avocados strengthen bones
14
For a price ceiling to be effective, it must be set below the natural market equilibrium?
False
True
15
As Price decreases....
QS decreases
D increases
nothing happens
QD increases
16
How is the market-clearing price determined?
By consumers
By manufacturers
By trial and error
By the government
17
A leftward shift in the supply curve of corn would result from:
a decrease in P of farm machinery
an increase in labor costs of producing corn
a decrease in P of corn
an increase in consumers income
18
"Rent control" limits what landlords can charge for rent on apartments. What is the result?
Houses are made into apartments to meet the demand
People can find apartments but can't afford them
Construction jobs increase building of new apartments
More people want to rent apartments than are available
19
The equilibrium price is the price at which
producers' total revenue is highest.
consumers start reducing demand.
demand and supply curves intersect
neither demand nor supply will shift.
20
Government jobs programs like the WPA or the ARRA are a response to
a shortage of skills.
a surplus of workers.
an excess of services.
a lack of incentives.
21
If the govt eliminated an effective price floor, all of the following would occur
EXCEPT
:
the price would decrease
The surplus would be eliminated
the supply of the good would increase
the quantity supplied would decrease
22
A change in demand
a movement of the D curve
a movement of the S curve
a movement along the D curve
a function of P
23
Effectively what is happening.
Price floor has been imposed
Supply has increased
A dead weight loss from the quota imposed.
A quota imposed from the dead weight loss.
24
Which would occur as a result of an increase in a sales tax to a good?
QD will decrease
S would increase
QD will increase
D will increase
25
If the D for potatoes increases as income increases, potatoes are considered a:
inferior good
french fries
normal good
potato
