What is meant by equity in a stock portfolio?

Equity equals the amount of assets minus liability

What is the Dow Jones Industrial Average?

The sum of 30 respectable and stable blue chip stocks

How does the substitution effect work when the price of an item increases?

Consumers will increase their purchases of the substitute

If all things remain constant, how can population change affect demand for certaingoods?

Different levels of demand will cause different prices

What is the definition of an Inferior Good?

A good that is no longer bought when incomes increase

What causes shifts in demand?

Complete demand changes due to events like war or depression

What type of person would most likely invest in a low risk stock portfolio?

A younger person looking to begin a solid retirement fund

What type of stocks will investors include in their portfolio to make a lot of money, quickly?

Stocks from just one or two violable companies

the stock exchange market located on Wall Street in NYC

What is meant by an equilibrium price?

Where consumer demand and producer's supply schedules meet

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Unit III Microeconomics Supply and Demand etc

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Questions 21

Answers

1
What is meant by equity in a stock portfolio?
Equity is the amount of liability and assets
Equity is the amount of stocks bought on margin
Equity is a high risk portfolio
Equity equals the amount of assets minus liability
2
Fill in the blank: Shifts to the right on a demand curve, indicate an ________________
decrease in demand
the impact of conservative politics in the market place
a total increase in demand
no change in demand
3
Which is an example of a complementary determinant of demand?
Big Macs and Fillets o' Fish
Your new haircut looks swell!! #flatteryiseasytorecognize
Peanut Butter and Jelly
Pepsi and Coke products
4
On a demand curve, a decrease in demand results in movement to the
right
other side
dark side
left
5
What is the Dow Jones Industrial Average?
The sum of 30 respectable and stable blue chip stocks
The collection of 500 leading stocks sold on the NYSE
The closing stock price for the Wall Street Journal LLC
The sum of all stocks sold on the NYSED
6
How does the substitution effect work when the price of an item increases?
Consumers buy the item even if they do not want it
The price for a substitutes will increase at the same rate
Consumers will increase their purchases of the substitute
Consumers will pay for the same item regardless of price
7
Which is NOT a determinant of demand?
Income
Popularity
Job title
Population
8
If all things remain constant, how can population change affect demand for certaingoods?
Demand will exceed supply under most conditions
More people demanding more goods will lead to surpluses
People are less likely to buy as they become older
Different levels of demand will cause different prices
9
Ceteris Paribus is the latin phrase that means:
There is an increase demand for all other things
All other things are not demanded
All other things change
All things remain constant
10
What is the definition of an Inferior Good?
A good that are bought and used together
The Latin term that means "all other things held constant"
A good that consumers demand more when incomes increase
A good that is no longer bought when incomes increase
11
Ceterus Paribus, as demand for products decrease, what happens to the price of an item sold?
price increases
price remains the same
none of the above, this is a trick question
price decreases
12
What would cause a demand curve to shift to the right?
A small change in the determinants of demand
Improved technology and demand
A damaged economy and recessions
The change in price due to a small scarcity in resources
13
What causes shifts in demand?
Complete increase or decrease in supply offered by producers
The change in equilibrium price
Complete demand changes due to events like war or depression
A total change in the type of consumer active in the market
14
What usually occurs or shows in a demand schedule when there is an increase in demand?
An increse in price
A decrease in price
A change in the overall procution of products
A change in price and availability
15
What type of person would most likely invest in a low risk stock portfolio?
A young person who wishes to quickly pay off tuition funds
A gambler who has nothing to lose
Someone who may retire soon and has not retirement funds
A younger person looking to begin a solid retirement fund
16
What type of stocks will investors include in their portfolio to make a lot of money, quickly?
A mixture of blue chip and penny stocks
Stocks from just one or two violable companies
Stocks from violable and blue chip companies
Conservative blue chip stocks
17
What is the NYSE?
a collection of 500 choice blue chip stocks
the total closing price of 30 respected stock companies
The secret code name for stock market criminals
the stock exchange market located on Wall Street in NYC
18
Which is NOT a type of stock sold in the stock markets?
growth
preferred
common
chicken
19
Fill in the blanks again: For inferior goods: If income __________, then demand ___________.
decreases, remains the same
increases, increases
increases, decreases
none of the above
20
What is meant by an equilibrium price?
An indicator of how well the economy is growing
Where consumer demand and producer's supply schedules meet
Goods that are used in place of one another
How demand changes due to basic determinants of demand
21
Fill in the blanks: For normal goods: If income_____________, demand _________________
increases, decreases
none of the above
decreases, increases
increases, increases

Unit III Microeconomics Supply and Demand etc Flashcards | StudBud