The market is at equilibrium. An increase in supply means

QS will exceed QD and the price will drop.

All of the following can change the market supply curve EXCEPT:

a change in the demand for products

higher prices will cause consumers to buy less.

The most effective way for consumers to let businesses know their desires is

by the purchases they make and don't make

Which will NOT change the demand for oranges?

a change in the price of oranges

What determines the price and quantity of a good on the market?

interaction of supply and demand

is the most desirable alternative to a decision

Technology affects the economy by

making the economy stronger and efficient.

The purpose of competition is to

act as a motivating force in a free market

How is future PRICE related to current demand?

If the price is expected to rise, current demand will rise.

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Economics Bench Review

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Questions 19

Answers

1
The market is at equilibrium. An increase in supply means
Undersupply means the good will be expensive.
Excess supply leads to producers producing less.
QD will exceed QS and the price will drop.
QS will exceed QD and the price will drop.
2
The struggle among producers for consumers' business is called
competition
regulation
socialism
incentives
3
All of the following can change the market supply curve EXCEPT:
the number of sellers offering products
a change in the demand for products
the cost of labor
expectation about a future price increase
4
The price of milk will affect the demand for cereal because
they are substitutes.
they are really unrelated.
they are inversely related.
they are complements.
5
Command economies historically have had
a lower GDP per capita.
a lower infant mortality rate.
a higher standard of living.
a free and independent media.
6
The law of demand
tells producers to ask consumers before producing goods.
will encourage producers to make more goods.
says a higher price will lead consumers to buy more.
higher prices will cause consumers to buy less.
7
The most effective way for consumers to let businesses know their desires is
by hiring lobbyists
through mail and phone surveys
protesting and boycotting
by the purchases they make and don't make
8
What incentive motivates producers?
making a popular product
making profit on sales
pleasing customers
putting other out of business
9
Buyers purchasing the same amount supplied by producers is called
excess demand
price floor
supply and demand
equilibrium
10
Which will NOT change the demand for oranges?
a change in consumer income
a change in the price of grapefruits
a change in the price of oranges
a change in consumer taste in oranges
11
What determines the price and quantity of a good on the market?
interaction of supply and demand
consumers' perception of need
availability of substitutes
quality of goods on the market
12
An opportunity cost
is the process of making a decision
the different ways to make a decision
is the most desirable alternative to a decision
the best way to make a decision
13
Technology affects the economy by
reducing business reliance on government.
making the economy stronger and efficient.
slowing the economy in the short term.
reducing available jobs.
14
An economy where government makes the major decisions is called
free enterprise
laissez faire
centrally planned
socialistic
15
When a consumer is able and willing to buy a good or service, he creates
demand.
elasticity.
allocation.
consumption.
16
A government deciding to spend money on military versus farm subsidies is a decision known as
guns and butter
basic economic decision
global trading
decision at the margin
17
The purpose of competition is to
act as a motivating force in a free market
cause buyers to beware of risky choices
to regulate the marketplace
put other producers out of business
18
How is future PRICE related to current demand?
If the price is expected to fall, current demand will rise.
If the price is expected to rise, current demand will drop.
If the price is expected to rise, current demand will rise.
Future price is not related to demand.
19
An advantage of a free market system is
It can rapidly adapt
It is easy to regulate
It encourages economic growth
It protects the less fortunate

Economics Bench Review Flashcards | StudBud