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BJU Economics Chapter 4 (Supply) Flashcards | StudBud
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BJU Economics Chapter 4 (Supply)
BJU Economics Chapter 4 (Supply)
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1
What is the easiest way to fix a surplus?
set a price ceiling
set a price floor
Lower the price of the item
Raise the price of the item
2
The government says that people can't charge more than $1,500 a month for rent. This is an example of
a shortage
a surplus
a price ceiling
a price floor
3
What is the "supply" solution to fix a surplus?
decrease supply
increase the price
decrease the price
increase supply
4
What is the easiest way to fix a shortage?
increase prices
create a price floor
lower prices
create a price ceiling
5
The law of supply states that as prices go up...
consumers will demand a lower quantity
suppliers will produce a lower quantity
suppliers will produce a higher quantity
consumers will demand a higher quantity
6
Point "B" is called the market equilibrium point.
False
True
7
Which of these is NOT a reason for a change in supply?
Changes in technology
Change in price
Change in production costs
Change in the price of related goods
8
If the price is set ABOVE market equilibrium point, what will happen?
quantity supplied will decrease
shortage
market crash
surplus
9
The market equilibrium point represents
when consumers get a good deal on goods and services in the market
a true balance in the force
an economy at its most efficient point
the point at which supply and demand curves intersect
10
What term describes the amount of a product a company is willing to provide at various prices?
supply
PPC
demand
product ceiling
11
The government is generally better than a free market at encouraging the correct supply of necessary goods.
True
False
12
The price of computers falling is most likely due to
A change in the price of related goods
A change in technology
People suddenly hating computers
A change in production costs
13
From the standpoint of a supplier, what would be the best solution to a surplus
increasing demand
just simply taking the loss
lowering the price on their products
cutting production
14
What has occurred in this graph?
decrease in quantity supplied
increase in quantity supplied
increase in supply
decrease in supply
15
The price on a bike has risen from $80 to $120. As such, suppliers are willing to supply more bikes. This illustrates...
an increase in supply
a surplus
a shortage
an increase in quantity supplied
16
A leftward shift of the supply curve indicates
a decrease in quantity supplied
an increase in supply
a decrease in supply
an increase in quantity supplied
17
What is the demand solution to a shortage?
increase the supply
decrease demand
lower prices
set a price floor
18
A shortage would occur as a result of the last question.
False
True
19
A product's equilibrium price does not change.
False
True
20
The market equilibrium price for a candy bar is $1.00, but the store decides to sell it for $2.50. What occurs?
a price floor
a shortage
a surplus
a price ceiling
