Economics 3&4

Question 1

Designer clothing

Accepted Answer

Normal good

Question 2

People lose their jobs in a depression, what usually happens to demand curves for normal goods?

Accepted Answer

They shift to the left

Question 3

A drought in wheat growing areas, bread producers are faced with increased cost for wheat; why?

Accepted Answer

Change in production costs

Question 4

Term that describes the amount of a product a company is willing to provide at various prices?

Accepted Answer

Supply

Question 5

Higher the price buyers are willing to pay, the greater quantity a firm will produce/vice versa

Accepted Answer

Law of Supply

Question 6

Gov. regulations cause the FAA to hire more traffic controllers, result: increase price; why?

Accepted Answer

Change in production costs

Question 7

Which of the following is not one of the functions of prices?

Accepted Answer

Increase Utility

Question 8

What is the typical description of a fad item's demand curve

Accepted Answer

Shift right, then shift left

Question 9

Minimum wage is an example of this in the market

Accepted Answer

Price floor

Question 10

Type of good that steak will become because my income has increased?

Accepted Answer

Normal good

Question 11

Rumor has it that there will be a 10% increase in automobile costs next year, result now?

Accepted Answer

Increase in demand now

Question 12

The local grocery store announces an upcoming sale on beef, what will be the IMMEDIATE result?

Accepted Answer

A decrease in demand

Question 13

Which of the following is not a way to eliminate surplus?

Accepted Answer

Raise price

Question 14

Business is willing to supply more/less of a product when its price has not changed, called?

Accepted Answer

Change in supply

Question 15

Graph representing how much a good/service a producer will produce-curves upward

Accepted Answer

Supply Curve

Question 16

A decrease in the demand for baseball gloves will result in a decrease in baseball sales; why?

Accepted Answer

Change in price of related goods

Question 17

Store-brand cereal is what type of good when I start to buy it because my income as decreased?

Accepted Answer

Inferior Good

Question 18

If the government forces milk to be sold above the market equilibrium price, what results?

Accepted Answer

Surplus

Question 19

When a change in price causes a change in the number of items demanded, this is called?

Accepted Answer

Change in quantity demanded

Question 20

You suddenly got a job and your demand for Starbucks has increased; why?

Accepted Answer

Change in income

Question 21

A record of the satisfaction gained from a repeated experience

Accepted Answer

Marginal Utility Schedule

Question 22

Bacon and eggs

Accepted Answer

Complementary Good

Question 23

Quantity demanded is higher than the available supply

Accepted Answer

Shortage

Question 24

A second piece of birthday cake's being less enjoyable than the first piece

Accepted Answer

Marginal Utility

Question 25

New fad: yellow and red sunglasses: Result and why?

Accepted Answer

Increase in demand; change in people's taste/preferences

Question 26

Quantity supplied is greater than the quantity demanded

Accepted Answer

Surplus

Question 27

Consumer's willing to buy will decrease as price increases; will increase as price decreases

Accepted Answer

Law of Demand

Question 28

A new car = a marginal utility of 25, a second identical car = what number of utils?

Accepted Answer

15 utils

Question 29

Which of the following might persuade a dairy farmer to purchase more cows?

Accepted Answer

The price of milk

Question 30

Powdered Milk

Accepted Answer

Inferior Good

Question 31

From the standpoint of the supplier, what is the best solution to a surplus?

Accepted Answer

Increasing demand

Question 32

Government imposed minimum price on the market

Accepted Answer

Price Floor

Question 33

Change in price causes a change in the number of goods produced/sold; this is called?

Accepted Answer

Change in quantity supplied

Question 34

No change in price, but there is an increase/decrease in what consumers are willing to buy

Accepted Answer

Change in demand

Question 35

Price where consumers are willing to buy same quantity that suppliers are willing to produce

Accepted Answer

Market equilibrium price

Question 36

A drop in income would have the least effect on the demand for

Accepted Answer

bread

Question 37

A government imposed maximum price on the market

Accepted Answer

Price ceiling

Question 38

The term economists use to describe the act of buying

Accepted Answer

Demand

Question 39

Buying hot dogs because hamburger is too expensive

Accepted Answer

Substitute Good

Question 40

Government forces homes to be rented below the market equilibrium price, what is the result?

Accepted Answer

Shortage

Question 41

A graph representing how much a good/service will be bought at a certain price/slopes downward

Accepted Answer

Demand Curve

Economics 3&4

Questions 41

Economics 3&4

Questions 41