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Economics - Ch 4 and 5 Review Flashcards | StudBud
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Economics - Ch 4 and 5 Review
Economics - Ch 4 and 5 Review
20 terms
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econ supply demand
Flashcards
20 cards
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Practice quiz
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Questions
20
Answers
1
If the elasticity of supply for a good is 0.75, then it is
cannot be determined from information given
elastic
unit elastic
inelastic
2
Demand is considered unit-elastic if elasticity of demand is ______ 1.0
equal to
less than
can't be determined from the information given
greater than
3
Which best states the law of supply?
none of the above
The higher the price, the smaller the quantity supplied.
The lower the price, the greater the quantity supplied.
The lower the price, the smaller the quantity supplied.
4
If the price of avocados increases, a deli will _______ their supply of guacamole.
decrease
make no changes to
cannot be determined from the information given
increase
5
The formula for elasticity is % change in quantity divided by % change in price.
True
False
6
If all other things are constant, a change in the price of a good causes
a leftward shift of the supply curve
a rightward shift of the supply curve
none of the above
a movement along the supply curve
7
Quantity demanded is a point on the curve, while demand is the entire curve
True
False
8
The demand for a(n) _____ good decreases as money income increases.
superior
inferior
none of the above
normal
9
Improvements in technology cause a leftward shift in the supply curve.
True
False
10
Which is NOT a determinant of market supply?
composition of buyers
Cost of resources used to make good
Expectations of producers
number of sellers in the market
11
It shows the total quantity demanded by all consumers at various prices
total revenue
market demand
individual demand
consumer demand
12
A demand curve can be used to find the amount of a product demanded at a particular price.
True
False
13
Which is an example of the law of diminishing marginal utility?
You buy a second can of soda because you are still thirsty.
You get two candy bars since they are on two for one sale.
You buy 2 bottles of shampoo because it's on sale.
After you finish your pie, you decline a second piece.
14
According to the law of demand as price ___, quantity demanded ___.
increases; increases
decreases; decreases
increases; decreases
decreases; stays the same
15
Which is NOT a determinant of demand
change in number of consumers
consumer expectations
change in consumer income
change in price of good
16
If the elasticity for demand for a product is 1.67. It is
none of the above
Unit Elastic
Inelastic
Elastic
17
A shift to the right of the demand curve means
an increase in price
a decrease in price
an increase in demand
a decrease in demand
18
According to the law of diminishing returns
stop when marginal cost exceeds worker's marginal product
aim for negative marginal product
the more workers, the better.
a firm should allow, at most, 3 workers on one job.
19
Which is the best example of the substitution effect?
You buy Fruity Pebbles, instead of Fruit Loops.
You don't buy Pepsi because they are out at the store.
You buy Snapple because it's on sale.
You work a double shift at work to save for prom.
20
Peanut Butter and Jelly can be considered
none of the above
complements
inferior goods
substitutes
