The change from S (black) to S1 (purple) demonstrates that now

Producers are willing to make more at all possible prices

Quantity supplied of sombreros would most likely increase if

The price of sombreros increased

Government increases regulation of the tobacco industry, what is likely to occur?

Supply decreases, Quantity Demanded decreases

Which of the following would take place in the Resource Market?

The Atlanta Zoo buys bananas to feed Hungry the Hippo.

What might cause the graph below for Coca-Cola?

Sugar syrup goes up in price for Coca-Cola.

The law of demand states that

Consumers will buy more at lower prices

To be effective a price ceiling must be

Set below the equilibrium price

Which of the following would take place in the Product Market?

Mrs. Jones buys a Samsung Galaxy phone

Which is true regarding the graph?

Equilibrium quantity is increasing.

Government decides to lower personal income taxes, this would most likely cause

The demand curve to shift right

At the market clearing price

There are an equal number of buyers and sellers

Producers expect the price of a product to increase in the future. What is the consequence?

Supply of the product shifts left short-term

Which of the following would be a microeconomic decision?

Whole foods stops carrying canned foods.

In what case would the government want to mandate a price of $10?

To make sure producers make profit off of sold goods

The law of supply states that

Producers will make more at higher prices

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PFE Micro A

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Questions 47

Answers

1
The change from S (black) to S1 (purple) demonstrates that now
Producers are willing to make less at a specific price
Producers are willing to make less at all possible prices
Producers are willing to supply more at specific prices
Producers are willing to make more at all possible prices
2
Popeye moves away from Candyland, because they weren't buying spinach, this is an example of
Opportunity Cost
Law of Supply & Demand
Elasticity of Demand
Economic Interdependency
3
Quantity supplied of sombreros would most likely increase if
Mexico required all farmers to wear sombreros
The price of sombreros increased
The cost of sombrero straw decreased
Mexico won the world cup
4
Chester increases the price of Cheetos, what happens to Cheez Doodles?
Demand shifts to the right
Supply shifts to the left
Supply shifts to the right
Demand shifts to the left
5
Households & Businesses
All of these
Establish equilibrium prices and quantities
Are the two economic actors in the circular flow
Are interdependent
6
Government increases regulation of the tobacco industry, what is likely to occur?
Demand decreases, Quantity Supplied decreases
Supply decreases, Quantity Demanded decreases
Demand increases, Quantity Supplied increases
Supply increases, Quantity Demanded Decreases
7
A demand curve would typically slope
Downward
Horizontal
Vertical
Upward
8
When supply goes up and demand stays the same, equilibrium quantity __ & equilibrium price ___
Falls, Falls
Falls, Rises
Rises, Falls
Rises, RIses
9
If a producer set his price at $8, he should expect to ?
None of these
Have customers that refuse to buy because of the price.
Sell 20 items.
Have angry customers who are unable to get the product.
10
Which arrows represent money flow?
6,5
4,7
3,8
None of these
11
The price of milk triples, what happens to cereal?
Quantity Demanded increases
Demand decreases
Quantity Supplied Increases
Supply increases
12
Which of the following would take place in the Resource Market?
Mr. Jones buys a banana split from Dairy Queen.
None of these
The Atlanta Zoo buys bananas to feed Hungry the Hippo.
Marcy buys bananas at the supermarket.
13
There is low demand for a product, what would encourage producers to still make it?
If it is inelastic
If it is elastic
A price ceiling
A price floor
14
Which arrows represent Apple selling an Iphone to Mrs. Pearce?
3,8
6,5
1,2
4,7
15
An effective price ceiling must be set above the market clearing price.
True
False
16
Who determines the market clearing price of Catsup?
Buyers and Sellers of Catsup
Sellers of Catsup
Buyers of Catsup
Government
17
What might cause the graph below for Coca-Cola?
A famous celebrity endorses Coca-Cola.
A study finds that Coca-Cola causes obesity.
Coca-Cola gets a faster bottling machine.
Sugar syrup goes up in price for Coca-Cola.
18
The law of demand states that
Producers will make more at high prices
Consumers will buy more at lower prices
Consumers will buy more at higher prices
Producers will make more at low prices
19
To be effective a price ceiling must be
Without a true equilibrium price
Set above the equilibrium price
Set at the equilibrium price
Set below the equilibrium price
20
Consumers expect the price of ab rollers to soar, what happens?
Demand for ab rollers increase
Demand for ab rollers decrease
Quantity demanded of ab rollers increase
Quantity demanded of ab rollers decrease
21
Which of the following would take place in the Product Market?
Acura purchases new tires from Toyo for its cars
Mrs. Jones buys a Samsung Galaxy phone
Mr. Jones sells timber to Georgia Pacific
Burger King buys a new grill
22
A price of $6 would have what impact?
A surplus of 12
A shortage of 14.
A shortage of 12
None of these
23
What is the best mascot in the land?
Bear
Pirates
Herons
Blue Tide
24
Which is true regarding the graph?
All of these.
Equilibrium Price is increasing.
Supply is decreasing.
Equilibrium quantity is increasing.
25
High prices act as an indicator for
Producers to increase production
Both of these
None of these
Consumers to decrease consumption
26
Government decides to lower personal income taxes, this would most likely cause
The demand curve to shift left
The supply curve to shift to the right
The supply curve to shift left
The demand curve to shift right
27
The minimum wage would be an example of
A value-added tax
A price ceiling
A price floor
Government Deregulation
28
What would be the impact of a government price floor of $6?
Nothing
A shortage of 14
A shortage of 12
A surplus of 12
29
When supply is low and demand is high
the equilibrium quantity is lower
the price is high
the equilibrium quantity is higher
the price is low
30
An effective price floor must be set above the market clearing price.
True
False
31
At the market clearing price
Consumers will refuse to buy the good
There will be a surplus of goods
Producers will make the most of a good
There are an equal number of buyers and sellers
32
The term "firm" would describe
A consumer
A household
A business
A government body
33
Genetically modified bees are able to produce more honey so the ____ of honey shifts ______.
Demand, Right
Supply, Left
Supply, Right
Demand, Left
34
Producers expect the price of a product to increase in the future. What is the consequence?
Demand of the product shifts left short-term
Demand for the product shifts right short-term
Supply of the product shifts left short-term
Supply of the product shifts right short-term
35
Which would cause a shift to the right in supply?
Increased worker education
Consumers increase their preference for the good
All of these
Increased costs in productive resources
36
What does Papa's Pizza receive in the Product Market?
None of these
Money
Pizza
Cheese
37
This picture best exemplifies
Substitute goods
Durable Goods
Capital Goods
Complimentary Goods
38
Which of the following would be a microeconomic decision?
The federal reserve attempts to raise interest rates.
Congress must decide whether to pass a higher minimum wage.
Whole foods stops carrying canned foods.
The President has to decide whether to increase taxes.
39
A price floor above the equilibrium price would lead to
A market clearing price
A shortage
None of these
A surplus
40
In what case would the government want to mandate a price of $10?
To make sure that producers are able to sell all supplies
To make products cheaper for the consumer
To make sure producers make profit off of sold goods
To meet the equilibrium price
41
If a producer set his price at $8, he should expect to ?
None of these
Have angry customers who are unable to get the product.
Have customers that refuse to buy because of the price.
Sell 20 items.
42
The price of milk triples, what happens to the equilibrium price for cereal?
It goes down.
It goes up.
It is not affected.
Not enough information.
43
Which is a determinant of supply?
Taste/Preference
Income
Consumer expectations
Cost of Productive Resources
44
What would be the impact of a government mandated price of $10?
A surplus of 12
A surplus of 14
A shortage of 14
A shortage of 12
45
Teams buy more helmets because of breast cancer awareness month, this describes a change in
Quantity Demanded
Quantity Supplied
Demand
Supply
46
The law of supply states that
People will buy more at lower prices
Producers will make more at higher prices
Producers will make more at lower prices
People will buy less at higher prices
47
Hal's pays Happy to make pizza, Happy provides tremedous service for Hal's cusotmers, this describes
Economic Interdependence
Neither of these
Voluntary Exchange
Both of these

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