Unit 2 Econ Review

Question 1

The demand curve is ______________ sloping, illustrating the inverse relationship between price and quantity demanded

Accepted Answer

downward

Question 2

What will happen in the market when a tax is placed on producers?

Accepted Answer

Supply will decrease

Question 3

Which one of the following is a shifter (determinant) of supply?

Accepted Answer

number of sellers

Question 4

An increase in the price of a product would cause the following change

Accepted Answer

a decrease in the quantity demanded for a product

Question 5

Which one of the following is a shifter (determinant) of demand?

Accepted Answer

price of related goods

Question 6

The Law of Supply states that a/an ____________ relationship exists between price and quantity supplied

Accepted Answer

direct

Question 7

Which one of the following is a shifter (determinant) of demand?

Accepted Answer

number of consumers

Question 8

The government places a tax on the production of cigarettes. This action would cause the following change:

Accepted Answer

a decrease in the supply for a product

Question 9

Used clothes, used cars, SPAM, Ramen noodles are examples of this kind of good

Accepted Answer

inferior

Question 10

When quantity supplied is greater than quantity demanded, there is a

Accepted Answer

surplus

Question 11

Which one of the following is a shifter (determinant) of supply?

Accepted Answer

prices/availability of inputs

Question 12

If a certain combination of goods lies inside a country's PPC it is said to be

Accepted Answer

inefficient

Question 13

Which of the following is NOT a factor of production

Accepted Answer

scarcity

Question 14

When quantity demanded is equal to quantity supplied

Accepted Answer

equilibrium

Question 15

The Law of Demand states that a/an _________relationship exists between price and quantity demanded

Accepted Answer

inverse

Question 16

What will happen in the market when the government deregulates an industry?

Accepted Answer

supply will increase

Question 17

The increase in the price of milk results in a decrease in the demand for cereal. These two products are

Accepted Answer

complements

Question 18

If Jell-O is an inferior good what will happen when consumers' income decreases?

Accepted Answer

Demand for Jell-O will increase

Question 19

Which one of the following is a shifter (determinant) of demand?

Accepted Answer

future expectations

Question 20

A decrease in the quantity supplied can be shown by

Accepted Answer

movement down, along the supply curve

Question 21

A decrease in the quantity demanded can be shown by

Accepted Answer

movement up, along the demand curve

Question 22

Which one of the following is a shifter (determinant) of supply?

Accepted Answer

expectations of future profit

Question 23

A government payment to a business that offsets the cost of production is called a

Accepted Answer

subsidy

Question 24

Increased investment in technology would likely have what effect on a PPC?

Accepted Answer

and outward shift of the PPC

Question 25

An increase in the price of a product would cause the following change:

Accepted Answer

an increase in the quantity supplied for a product.

Question 26

An increase in innovative technology would cause the following change?

Accepted Answer

an increase in the supply for a product

Question 27

When quantity demanded is greater than quantity supplied, there is a

Accepted Answer

shortage

Question 28

A decrease in the quantity supplied can be shown by

Accepted Answer

movement down, along the supply curve

Question 29

The supply curve is ____________ sloping, illustrating the direct relationship between price and quantity supplied

Accepted Answer

Upward

Question 30

Seafood, Yachts, jewlery, new houses, new cloths are considered this type of good

Accepted Answer

normal

Question 31

Which one of the following is a shifter (determinant) of supply?

Accepted Answer

technology

Question 32

Which group are we talking about when it comes to supply curves?

Accepted Answer

producers

Question 33

Any point that falls outside the PPC is said to be what?

Accepted Answer

unattainable

Question 34

Which of the following motivates entrepreneurs to take risks?

Accepted Answer

profits

Question 35

Which one of the following is a shifter (determinant) of demand?

Accepted Answer

tastes/preferences

Question 36

What will happen in the market when a subsidy is provided to producers?

Accepted Answer

supply will increase

Question 37

Burritos are a normal good. What will happen when consumers’ income decreases?

Accepted Answer

Demand for burritos will decrease

Question 38

The decrease in the price of hotdogs results in a decrease in the demand for hamburgers. These two products are

Accepted Answer

substitutes

Question 39

Which one of the following is a shifter (determinant) of demand?

Accepted Answer

income

Question 40

An economy operating at its production posibilities curve is

Accepted Answer

using resources efficiently

Unit 2 Econ Review

Questions 40

Unit 2 Econ Review

Questions 40