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Microeconomics Unit 2 Review Flashcards | StudBud
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Microeconomics Unit 2 Review
Microeconomics Unit 2 Review
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1
Which of the following cannot shift the demand curve?
Prices of other goods
Income
Tastes and Fads
The cost to produce the good
2
What happens to the supply of cars if the government bans the import of foreign cars?
It decreases
It is unchanged
It increases
3
If the demand for chocolate syrup rises when the price of ice cream falls, they are
normal goods
complements
luxury items
substitutes
4
What would happen to the demand for normal goods if someone had a rise in income?
It would increase
It would decrease
It would be unchanged
5
At equilibrium, QS= _____
MC
QD
P
MB
6
Which graph depicts what should happen in the market for jeans if the price of cotton goes up?
Panel B
Panel C
Panel D
Panel A
7
What would be the likely effect of a subsidy for the production of cigarettes?
A decrease in demand
An increase in supply
A decrease in supply
An increase in demand
8
Which of these would generally cause a shortage?
A price floor
An increase in demand
A price ceiling
A government subsidy
9
When a demand for a good goes up when income goes down, that good is called
luxury
normal
rare
inferior
10
Which would likely happen in the iPhone market if the price of Android phones went down?
Panel B
Panel A
Panel C
Panel D
11
Which of the following is depicted in the graph?
Price Floor
Price Ceiling
Subsidy
Shift in Supply Demanded
12
When there is an increase in supply and demand, we know for sure:
We can't know any of these things for sure.
...that quantity and price will increase
...only that price will increase
...only that quantity increases
13
At the equilibrium price, what would be the area of consumer surplus?
E
A+B
A
C+D
14
If the government imposed a quota, limiting shrimp sales to 1,000 pounds, the price per pound
would be $5
would be $12.50
would be $2
would be $20
15
If the price falls from $2 to $1, and the quantity demanded rises from 4 to 5...
demand is inelastic in this range
demand is elastic in this range
revenue will rise
demand is unit elastic in this range
16
Which of the following would not shift the supply curve?
Expectations of producers
Tastes and fads
Taxes
Cost of resources
17
What would happen to the price and quantity of broccoli if it is found to cure cancer?
only quantity goes up
price and quantity both go down
price and quantity both go up
only price goes up
18
There is a frost and many of the coffee bean trees die. This raises the price of coffee. Why?
Movement along the supply curve
A shift of the supply curve
A shift of the demand curve
