In which of these statements are the terms demand, supply, quantity demanded, and quantity supplied used correctly?

changes in price affect quantity demanded but not the overall demand

In the graph above, what might explain the movement of the demand curve from D1 to D3?

A decrease in the price of a complementary product

What is the most likely cause of a shift from S1 to S3?

A rise in the tax rate for corporate earnings

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Economics - Unit 2 Test review

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Coach EOCT Lessons 7-9. #economics #microeconomics #supply #demand #circularflow

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Answers

1
For Hunts Inc., assuming production began at point A, what is the opportunity cost of producing 80 bottles of ketchup?
40 bottles of ketchup
80 bottles of ketchup
20 jars of salsa
10 jars of salsa
2
Which of the following is a characteristic of a pure monopoly?
no substitute products
perfect information
low barriers to entry
a few sellers of the product
3
The workers’ compensation program is designed to promote the social and economic goal of
price stability
economic freedom
economic equity
economic security
4
What's the main difference between allocating through “supply & demand” & through a “contest”?
none of the above
contest inefficient; it gives resources to the wrong person
supply/demand based on merit or need while contest is not
supply/demand forces people to waste time waiting for a sale
5
In which of these statements are the terms demand, supply, quantity demanded, and quantity supplied used correctly?
if the demand rises, supply rises
changes in demand & supply will not cause changes in the equilibrium price
changes in price affect quantity demanded but not the overall demand
decreases in quantity demanded/supplied often occur simultaneosly
6
For which of the following market structures can you find a large amount of “non-price competition”?
oligopoly
perfect competition
monopoly
command economy
7
Which type of market structure is characterized by the smallest number of firms?
oligopoly
pure competition
monopolistic competition
monopoly
8
In the graph above, what might explain the movement of the demand curve from D1 to D3?
A surplus of the product
A decrease in the general income of the region
A decrease in the price of a complementary product
A decrease in the price of a substitute product
9
What is the most likely cause of a shift from S1 to S3?
A company finds the cure for cancer
The increased number of sellers for a particular product
The introduction of new technology
A rise in the tax rate for corporate earnings
10
Which of the following is a typical role of government in a capitalist market?
output setter
provider of public goods
price setter
majority owner of land and capital

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