Economics Ch. 6 Review

At the equilibrium price there is no surplus and no shortage

True/False: Competitive markets find their own prices without interference

If a competitive market is at equilibrium and there is a sudden increase in demand,

If Mr. Ricard has to pay a higher wage, he has some options. Which one is the best for HIM?

When QS is greater than QD there is a

In a situation where there is a price ceiling

Deficiency payments are part of a federal program to assist

price that "clears the market"

partial refund of original price of product

If the demand decreases, the price will likely

situation where qty of goods and services supplied equals demand

A competitive market economy

A high price is a signal for

When QD is greater than QS there is a

True or False: In a market economy, prices may act as signals.

When the market price is too high and there is a surplus, eventually the price

When the market price is too low and there is a shortage, eventually the price will

If there was a surplus crop, and the supply increased, we would expect the price of the crop to

True or false: Rationing is always perceived to be fair

Markets talk.

If the demand increases, the price will most likely

For the most part, rent controls

If there was a storm that knocked out an oil refinery, we would expect the cost of fuel to

CRP program paid farmers

minimum wage is an example of this:

Prices enable a market economy to adjust to unexpected events by

Elasticity is important when discussing the price of products, both from a demand and a seller's perspective.

Federal minimum wage is an example of