An example of a shortage is limited amounts of

food available because the trucks carrying it are on strike.

An efficient economy is one that

uses its resources to make the most goods and services.

Which statement explains why prices rise in a market?

There is excess demand in the market.

Whenever the market is in disequilibrium and prices are flexible, market forces will

push the market toward equilibrium.

When does a surplus exist?

there is a greater supply of a good than people want to buy

What does the Temporary Assistance for Needy Families program provide?

cash to the states to help run their welfare programs

In any market, quantities supplied and quantities demanded will

be equal at only one price and quantity.

A market is in equilibrium when

quantity supplied and quantity demanded are equal.

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

the interaction of supply and demand

Which of the following is NOT an advantage of a price-based system?

prices can easily be set by the government

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Economics Chapter 6 - Combining Supply and Demand

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Answers

1
An example of a shortage is limited amounts of
food available because few people want to buy it.
labor available because the workers have other jobs.
food available because the trucks carrying it are on strike.
irrigation water a crop because it is used for other crops.
2
A private organization that influences officials to act in ways that benefit the group
free enterprise group
interest group
market research group
public policy group
3
An efficient economy is one that
has very few people who do not work for a living.
makes the least costly use of its resources.
uses its resources to make the most goods and services.
makes the best use of all its goods and services.
4
What is the struggle among various producers for the consumer’s business called?
self-regulation
competition
socialism
incentive
5
Which statement explains why prices rise in a market?
There is excess demand in the market.
Producers produce a quantity greater than buyers want to buy
Consumers buy less of a good than they have in previous yrs.
New producers enter the market.
6
Whenever the market is in disequilibrium and prices are flexible, market forces will
prolong a shortage of goods and services.
not affect the economy.
keep the market in disequilibrium.
push the market toward equilibrium.
7
The resources used to make all goods and services are the
production trade-offs.
production possibilities
opportunity costs.
factors of production.
8
When there is excess supply,
prices tend to rise.
prices tend to fall.
the government imposes price ceilings.
demand rises.
9
When does a surplus exist?
when new products are brought to the market for sale
whenever prices drop
there are too few items for the people who want to buy them
there is a greater supply of a good than people want to buy
10
Driving to different stores to locate a product is an example of
a rationing system.
a supply shock.
spillover cost.
a search cost.
11
What does the process of specialization do for an economy?
It makes it more efficient.
It makes it easier to control.
It fosters competition
It eliminates unemployment.
12
What does the Temporary Assistance for Needy Families program provide?
cash to workers injured on the job
cash to the states to help run their welfare programs
compensation to all who lose jobs
retirement income for the elderly
13
In any market, quantities supplied and quantities demanded will
be equal at several different prices and quantities.
be equal at only one price and quantity.
never be equal.
always be equal.
14
What determines how a change in prices will affect total revenue for a company?
elasticity of demand
values of elasticity
the company’s pricing policy
the consumers’ incomes
15
What is the most effective way for consumers to make their desires known to businesses?
by protesting and boycotting products
through mail and phone surveys
by hiring lobbyists and joining consumer groups
by the purchases they make
16
Any resources that are made by humans and used to create other goods and services are called
production.
capital.
services.
labor.
17
A market is in equilibrium when
quantity supplied and quantity demanded are set by the govt.
quantity supplied and quantity demanded are equal.
quantity demanded is greater than quantity supplied.
quantity supplied is greater than quantity demanded.
18
What determines the price and the quantity produced of most goods?
the quality of the goods that are produced
the availability of substitutes for the goods
the consumer’s perception of necessity
the interaction of supply and demand
19
Which of the following is NOT an advantage of a price-based system?
prices are flexible
prices act as signals for buyers and sellers
prices act as an incentive for buyers and sellers
prices can easily be set by the government
20
How are goods and resources distributed in a free market economy?
through disequilibrium
through rationing
through government action
through prices

Economics Chapter 6 - Combining Supply and Demand Flashcards | StudBud