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Dr. Toedt's Econ Unit 2 Review Flashcards | StudBud
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Dr. Toedt's Econ Unit 2 Review
Dr. Toedt's Econ Unit 2 Review
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Questions
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Answers
1
A shift in the supply curve to the left means:
quantity producers offer at every price stays the same.
quantity producers offer at every price will be less.
quantity producers offer at every price will be high.
none of the above
2
When Creating a supply and demand curve how do you label each axis?
X=Price Y= number of sellers
X= number of buyers Y=number of sellers
X=Quantity Y=Price
X=Quantity Y= number of buyers
3
What Causes a shift in the Demand
Consumer Expectations
All of the above
income
Consumer Tastes & Advertising
4
If "demand shifts right," demand is...
decreasing
not changing
increasing
5
Substitute Goods
decrease in the price of one leads to an increase in the demand the other
increase in the price of one leads to a increase in the demand for the othe
increase in the price of one leads to a decrease in the demand for th other
increase in the price of one leads to an increase the demand for the other
6
Consumers’ desire to own something and their ability to pay for that something is called:
Demand
Ceteris Paribus
Equilibrium Price
Supply
7
This means that demand and supply curves only take
price
into account, rather than market-changing events
Equilibrium Price
Ceteris Paribus
Supply
Demand
8
The demand and supply schedule shows:
The same information as a supply and demand graph
Profit of loss of a business
Price that everyone would pay
Demand prices and quantities, but not supply
9
What label do you put on the x axis of a supply/demand curve (the horizontal axis or left/right axis)
Demand
Price
Quantity
Supply
10
Supply and Demand
Do not affect each other
None of these
Move In opposite directions, supply goes up demand goes down
Move In the same direction, supply goes up demand goes up
11
A “shortage” is when the producer:
Supplied more quantity than the market demanded and lost money
Did not supply enough quantity to meet demand and lost money
Supplied as much quantity as the market demanded and made more money
Supplied more quantity than the market demanded and made more money
12
When demand increases, the demand curve shifts
Left
Right
13
Government increases taxes on raw beef shipped by farmers:
Supply decreases, Equilibrium Price increases
Supply increases, Equilibrium Price decreases
Demand increases, Equilibrium Price increases
Demand decreases, Equilibrium Price decreases
14
A related complementary good becomes popular
Demand decreases, Equilibrium Price decreases
Supply increases, Equilibrium Price decreases
Demand increases, Equilibrium Price increases
Supply decreases, Equilibrium Price increases
15
When supply is greater than demand, a _________ will result
shortage
balance
equilibrium
surplus
16
Complements, or complementary goods...
Are goods that go well together- when one sells more, the other does too
Are goods that don't go well together- they don't affect each others' sales
17
A stock market crash causes many people to lose money
Supply increases, Equilibrium Price decreases
Demand increases, Equilibrium Price increases
Supply decreases, Equilibrium Price increases
Demand decreases, Equilibrium Price decreases
18
When demand is greater than supply, a _________ will result
balance
equilibrium
surplus
shortage
19
A leftward shift of supply will:
decrease demand.
increase demand.
increase equilibrium quantity.
decrease equilibrium quantity.
20
The products available for purchase are the:
Equilibrium Price
Demand
Supply
Ceteris Paribus
21
What happens when the supply is high and the demand is low?
Prices go crazy and have a party
The Prices tend to fall
The Prices tend to increase
You have the equilibrium
22
In which kind of economy are prices are influenced by supply and demand?
Market
Traditional
Command
Mixed
23
Substitute goods?
Taco Johns & Taco bell, cakes & pies, iPhone & Android
potato flakes & real potatoes, baseball & glove
Kindle & printed books
24
When the supply curve shifts right, what happens to market price and quantity?
They both rise
Price falls, quantity rises
Price rises, quantity falls
They both fall
25
A related substitute good becomes popular
Supply decreases, Equilibrium Price increases
Supply increases, Equilibrium Price decreases
Demand increases, Equilibrium Price increases
Demand decreases, Equilibrium Price decreases
26
If "supply shifts left," supply is...
not changing
decreasing
increasing
27
Price elasticity of demand measures...
buyers knowledge of the product
availability of substitutes
how sensitive consumers are to a change in price
buyers ability to switch
28
If "supply shifts right," supply is...
not changing
decreasing
increasing
29
When supply shifts to the left, what happens to market price and quantity?
They both go up
Price falls, quantity rises
They both go down
Price rises, quantity falls
30
Substitute goods
French fries and ketchup
Pancakes and syrup
Bacon and eggs
Butter and margarine
31
What label do you put on the y axis of a supply/demand curve (the vertcial axis or up/down axis)
Price
Supply
Demand
Quantity
32
When the supply curve shifts, it changes the ____ and _____ of the equilibrium
quantity, demand
price, supply
demand, supply
price, quantity
33
Why does the availability of substitutes affect price elasticity for a particular good?
Because consumers tend to find substitute goods to buy instead
Because a lack of substitutes can make demand inelastic for a good
Because producers tend to find substitute goods to buy instead
Because a lack of substitutes can make demand elastic for a good
34
A “surplus” is when the producer:
Supplied as much quantity as the market demanded and made more money
Did not supply enough quantity to meet demand and lost money
Supplied more quantity than the market demanded and made more money
Supplied more quantity than the market demanded and lost money
35
In general, when is equilibrium price reached?
When supply is equal to demand
When supply is less than demand
When supply is greater than demand
When supply and demand both shift right
36
When demand exceeds supply.
equilibrium
shortage
low prices
surplus
37
Which is NOT an example of complementary goods?
Bike and car
Boat and petrol
Bike and helmet
Car and petrol
38
Which of these factors may cause a shift in the demand curve?
A change in the size of the population
All of the above
A change in trends and fashions
Good or bad publicity
39
Which of the following might have caused the demand curve to shift right?
The number of consumers fell
Consumer preferences for the product improved
Consumer income fell
Resource costs dropped
40
Price Elasticity of Demand can change over time because......
Over time substitutes are available
Price will decrease
Price will increase
More can be supplied
41
A shift in the supply curve to the rights means:
the amount producers wish to sell at every price increases
All of the above
the amount producers wish to sell at every price decreases
the amount producers wish to sell at every price is the same
42
Why does demand generally become more elastic over long periods of time?
Because a lack of substitutes can make demand inelastic for a good
Because consumers tend to find substitute goods to buy instead
Because producers tend to find substitute goods to buy instead
Because a lack of substitutes can make demand elastic for a good
43
A producer hears a rumor that there will be a recession in the future
Demand increases, Equilibrium Price increases
Demand decreases, Equilibrium Price decreases
Supply decreases, Equilibrium Price increases
Supply increases, Equilibrium Price decreases
44
What happens when the Supply is low and the demand is high?
The price decreases
The price increaces
45
A blight or drought kills off crops used to produce certain product
Supply increases, Equilibrium Price decreases
Demand increases, Equilibrium Price increases
Demand decreases, Equilibrium Price decreases
Supply decreases, Equilibrium Price increases
46
Price has increased causing the supply curve to shift to the left.
True
False
47
A rival company lowers its prices
Demand decreases, Equilibrium Price decreases
Supply increases, Equilibrium Price decreases
Demand increases, Equilibrium Price increases
Supply decreases, Equilibrium Price increases
48
If "demand shifts left," demand is...
not changing
increasing
decreasing
49
Suppose that demand is elastic; what will happen to the company’s total revenue if it raises the price?
It will reduce the company’s total revenue
It will increase the company’s total revenue
It will not change the company's total revenue
None of the above
50
A new ad campaign becomes popular
Demand increases, Equilibrium Price increases
Demand decreases, Equilibrium Price decreases
Supply decreases, Equilibrium Price increases
Supply increases, Equilibrium Price decreases
51
When demand goes up, supply must ____ in the long run.
stay the same
decrease
increase
52
An endorsement from a popular celebrity
Demand decreases, Equilibrium Price decreases
Demand increases, Equilibrium Price increases
Supply increases, Equilibrium Price decreases
Supply decreases, Equilibrium Price increases
53
The magic point where supply and demand connects is
a price floor
Adam Smith land
equilibrium
a price ceiling
54
Price changes shift the demand curve
True
False
55
Price elasticity of supply is?
The number of rubber bands produced
The responsiveness of supply to a change in price
How demand impacts price
The responsiveness of demand to a change in price
56
If there is greater demand than supply...
Prices rise
Everything is free
Prices stay the same
Prices fall
57
A new technology allows faster production
Supply decreases, Equilibrium Price increases
Demand decreases, Equilibrium Price decreases
Demand increases, Equilibrium Price increases
Supply increases, Equilibrium Price decreases
58
When supply decreases the supply curve shifts
Right
Left
59
Changes in price shift the supply curve, no matter what they are
False
True
60
Substitute Goods
Goods that are interchangeable in value and price
When two players swap places
The person who watches your class when the teacher is gone
Goods whose demand are linked
