In 2005,Katrina and Rita hit and disrupted supply of oil. What was the impact on gas prices?

Gas prices fluctuated while supply of oil was unpredictable

Which event in FL and CA would most likely shift the supply curve for orange juice to the left?

an early frost accompanied by ice storms

Which of these situations best illustrates market equilibrium?

The amount of soap made meets amount of soap that people buy

Which of the following is an example of a supply shifter?

. an increase in the cost of inputs

How is future price related to current demand?

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

What determines the price and the quantity produced of most goods?

the interaction of supply and demand

What is the usual result of setting a price ceiling on rents?

More people want to rent than are available to rent

How is the market-clearing price determined?

It is reached through trial and error

The purpose of rationing during World War II was to ensure that

everyone could get essential scarce goods

What happens when wages are set above the equilibrium level by law?

employs fewer workers than they would at equilibrium wage

Suppose home prices in a city are increasing. What is a logical result of this price increase?

Construction firms begin building more homes.

One example of when the government might impose rationing is

when essential, but high-demand, goods are in short supply

The equilibrium price is the price at which

demand and supply curves intersect

Which of these might best signal furniture makers to cut back production?

. a drop in the price consumers are willing to pay

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Econ lesson 6

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Questions 22

Answers

1
In 2005,Katrina and Rita hit and disrupted supply of oil. What was the impact on gas prices?
Gas prices plummeted as consumer demand for gas dropped.
prices remained same because US gets all of oil elsewhere
stayed artificially high because president set price control
Gas prices fluctuated while supply of oil was unpredictable
2
Which event in FL and CA would most likely shift the supply curve for orange juice to the left?
an early frost accompanied by ice storms
an influx of new low-wage workers
evidence that citrus fruit strengthens bones
rise of mango juice as a popular breakfast drink
3
The most important argument many economists make against price controls is that they are
insecure
unfair
unstable
. inefficient
4
New Deal offered employment. In economic terms, such programs were designed to respond to
a surplus of workers
an excess of services.
a shortage of skills.
a lack of incentives
5
What are the owners of this shop trying to achieve with their prices?
excess demand
. market-clearning price
excess supply
market equilibrium
6
Which of these situations best illustrates market equilibrium?
The amount of soap made meets amount of soap that people buy
The price of soap does not vary much from week to week
Soap production ensures a good profit for the manufacturer.
Everyone who wants or needs soap can easily afford to buy it
7
Rent control is a type ofRent control is a type of
. price ceiling
rationing
surplus
price floor
8
Which of the following is an example of a supply shifter?
. an increase in the cost of inputs
a spike in the population
. changing consumer tastes
rising unemployment
9
How is future price related to current demand?
Future price is not 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
10
What determines the price and the quantity produced of most goods?
the quality of the goods that are produced
the interaction of supply and demand
the consumer’s perception of necessity
the availability of substitutes for the goods
11
The illegal buying and selling of goods in violation of price controls is called
rationing
. the equilibrium market
the black market
smuggling
12
What is the usual result of setting a price ceiling on rents?
People can find apartments but cannot afford to rent them
More people want to rent than are available to rent
Houses are broken up into apartments to meet the demand.
Construction jobs increase with building of new apartments
13
How is the market-clearing price determined?
It is set by a government commission
It is fixed by each manufacturer.
. It is calculated by economic analysts.
It is reached through trial and error
14
The result of the quantity demanded being greater than the quantity supplied is called
rationing
. surplus
shortage
equilibrium
15
What is the smallest amount that can legally be paid to workers for an hour of work?
price floor
equilibrium price
minimum wage
supply cost
16
The purpose of rationing during World War II was to ensure that
workers would have an incentive to get jobs
. manufacturers could make a profit.
everyone could get essential scarce goods
. products would go to those who valued them most
17
What happens when wages are set above the equilibrium level by law?
employs fewer workers than they would at equilibrium wage
employs more workers than they would at the equilibrium wage
Firm will neither employ more or less workers
try to break the law and hire people at equilibrium level
18
Suppose home prices in a city are increasing. What is a logical result of this price increase?
Architectural firms begin laying off staff members.
Construction firms begin building more homes.
Builders decide to renovate existing houses.
all of the answers
19
The result of quantity supplied being greater than quantity demanded is called
shortage
. surplus
equilibrium
. rationing
20
One example of when the government might impose rationing is
. when it establishes a minimum wage for labor.
when essential, but high-demand, goods are in short supply
hopes to stimulate economy by urging people to spend money
when farmers have produced more grains than people demand.
21
The equilibrium price is the price at which
demand and supply curves intersect
producers' total revenue is highest.
neither demand nor supply will shift.
consumers start reducing demand.
22
Which of these might best signal furniture makers to cut back production?
. a drop in the price consumers are willing to pay
an introduction of competitors into the market
an increase in availability of skilled workers
a fall in the cost of essential raw materials

Econ lesson 6 Flashcards | StudBud