An economist would probably agree that demand and supply schedules are primarily based on

decisions made by consumers and producers in the market

A higher price for a product

causes buyers to buy less of it

Which of the following statements about competition in a market economy is TRUE?

It affects supply and demand schedules.

The market-clearing price is the price at which

quantity supplied equals quantity demanded

A market-clearing price is important because

it balances the amounts demanded and supplied

Which of these statements best explains why the price of a toy might FALL just before Dec. 25th

Sellers produced a surplus of the toy.

In economics, a shortage of a product occurs when

the product's price falls below its market-clearing level

If the profit opportunity for a given product increases, the most likely result would be

an increase in the number of producers

An economist would probably agree that prices set by supply and demand are measures of the

relative scarcity of goods or services

The market equilibrium price is the price at which

the quantity demanded is the same as the quantity supplied

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Ch. 5 Market Clearing Price

22 termsStudBud Administration104 plays

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Questions 22

Answers

1
An economist would probably agree that demand and supply schedules are primarily based on
government intervention in setting prices
methods of improving business efficiency
decisions made by consumers and producers in the market
relative elasticity of most consumer needs and wants
2
A higher price for a product
causes buyers to buy less of it
causes shortages
shifts both the demand and supply curves
encourages sellers to sell less of it
3
Which of the following statements about competition in a market economy is TRUE?
It regulates the public's needs and wants.
It changes the demand curve.
It reduces efficiency in an economic system.
It affects supply and demand schedules.
4
The market-clearing price is the price at which
government officials decide to stabilize the market
quantity supplied exceeds quantity demanded
quantity supplied equals quantity demanded
producers decide to sell their goods in the market
5
What best describes the forces that make a price move up or down to its market-clearing level
competition among buyers
competition between buyers and sellers
both A and B
competition among sellers
6
A market-clearing price is important because
it clears away scarcity
it shifts both the demand and supply curves
it causes buyers to disappear from the market
it balances the amounts demanded and supplied
7
Which of these statements best explains why the price of a toy might FALL just before Dec. 25th
Buyers preferred the toy to others on the market.
Sellers produced a surplus of the toy.
Sellers failed to produce enough toys to meet demand.
Buyers caused a shortage of the toy.
8
In economics, a shortage of a product occurs when
the people who buy the product consume more than they need
the product's price falls below its market-clearing level
the businesses producing the product become less efficient
the product's market-clearing level reduces overall demand
9
During a month the price of a product rose 20%. This likely occurred because of an increase in
worker efficiency
producer outputs
consumer demand
short-term supply
10
If the profit opportunity for a given product increases, the most likely result would be
an increase in aggregate demand
an increase in the number of producers
an increase int he cost of production
an increase in the number of consumers
11
An economist would probably agree that prices set by supply and demand are measures of the
relative scarcity of goods or services
level of regulation in the economy
effects of government subsidies
amount of volatility in the market
12
Market-clearing prices are important in a free enterprise economy because they
help to ration available goods and services
provide information about producer costs and consumer wants
provide incentives for people to produce goods and services
All of the above
13
Which of the following best illustrates the rationing function of market-clearing prices?
$ advertisers pay for TV time has risen as the medium has
both of the above
none of the above
ticket prices to pro sports have risen as more fans attend
14
When demand and supply for a product are equal, which of the following is most likely true?
The product's market clears.
The product is scarce.
All of the above.
The product's price will fall.
15
Price ceilings can create _________ , but price floors can result in ____________ .
efficiency, elasticity
incentives, disincentives
surpluses, taxation
shortages, surpluses
16
What ECON system will product shortages or surpluses result in immediate & direct price change?
Traditional
Command
None
Market
17
If the demand for a product rises faster than supply, what happens to market-clearing price?
Fall
Not enough info
Unchanged
Rise
18
The market equilibrium price is the price at which
supluses depress the number of goods supplied
shortages and surpluses will have no effect on the market
the quantity demanded is the same as the quantity supplied
the government will not intervene in the market
19
The use of government price controls is most likely to create
reduced demand
great competition
problems of allocation
economies of scale
20
In a market economy, prices are affected by all of the following EXCEPT
scarcity
supply
welfare
demand
21
Product X is in high demand. The price rises by 15%. The most likely result is an increase in
consumer demand
supplier output
natural resources
government intervention
22
Market-clearing prices do which of the following in free enterprise?
All of the above
Encourage conservative consumption, efficient production
Act as messengers for consumers
Act as messengers for producers

Ch. 5 Market Clearing Price Flashcards | StudBud

Ch. 5 Market Clearing Price

22 termsStudBud Administration104 plays

Flashcards22 cardsFPractice quizPHost liveL

Questions 22

Answers

1
An economist would probably agree that demand and supply schedules are primarily based on
government intervention in setting prices
methods of improving business efficiency
decisions made by consumers and producers in the market
relative elasticity of most consumer needs and wants
2
A higher price for a product
causes buyers to buy less of it
causes shortages
shifts both the demand and supply curves
encourages sellers to sell less of it
3
Which of the following statements about competition in a market economy is TRUE?
It regulates the public's needs and wants.
It changes the demand curve.
It reduces efficiency in an economic system.
It affects supply and demand schedules.
4
The market-clearing price is the price at which
government officials decide to stabilize the market
quantity supplied exceeds quantity demanded
quantity supplied equals quantity demanded
producers decide to sell their goods in the market
5
What best describes the forces that make a price move up or down to its market-clearing level
competition among buyers
competition between buyers and sellers
both A and B
competition among sellers
6
A market-clearing price is important because
it clears away scarcity
it shifts both the demand and supply curves
it causes buyers to disappear from the market
it balances the amounts demanded and supplied
7
Which of these statements best explains why the price of a toy might FALL just before Dec. 25th
Buyers preferred the toy to others on the market.
Sellers produced a surplus of the toy.
Sellers failed to produce enough toys to meet demand.
Buyers caused a shortage of the toy.
8
In economics, a shortage of a product occurs when
the people who buy the product consume more than they need
the product's price falls below its market-clearing level
the businesses producing the product become less efficient
the product's market-clearing level reduces overall demand
9
During a month the price of a product rose 20%. This likely occurred because of an increase in
worker efficiency
producer outputs
consumer demand
short-term supply
10
If the profit opportunity for a given product increases, the most likely result would be
an increase in aggregate demand
an increase in the number of producers
an increase int he cost of production
an increase in the number of consumers
11
An economist would probably agree that prices set by supply and demand are measures of the
relative scarcity of goods or services
level of regulation in the economy
effects of government subsidies
amount of volatility in the market
12
Market-clearing prices are important in a free enterprise economy because they
help to ration available goods and services
provide information about producer costs and consumer wants
provide incentives for people to produce goods and services
All of the above
13
Which of the following best illustrates the rationing function of market-clearing prices?
$ advertisers pay for TV time has risen as the medium has
both of the above
none of the above
ticket prices to pro sports have risen as more fans attend
14
When demand and supply for a product are equal, which of the following is most likely true?
The product's market clears.
The product is scarce.
All of the above.
The product's price will fall.
15
Price ceilings can create _________ , but price floors can result in ____________ .
efficiency, elasticity
incentives, disincentives
surpluses, taxation
shortages, surpluses
16
What ECON system will product shortages or surpluses result in immediate & direct price change?
Traditional
Command
None
Market
17
If the demand for a product rises faster than supply, what happens to market-clearing price?
Fall
Not enough info
Unchanged
Rise
18
The market equilibrium price is the price at which
supluses depress the number of goods supplied
shortages and surpluses will have no effect on the market
the quantity demanded is the same as the quantity supplied
the government will not intervene in the market
19
The use of government price controls is most likely to create
reduced demand
great competition
problems of allocation
economies of scale
20
In a market economy, prices are affected by all of the following EXCEPT
scarcity
supply
welfare
demand
21
Product X is in high demand. The price rises by 15%. The most likely result is an increase in
consumer demand
supplier output
natural resources
government intervention
22
Market-clearing prices do which of the following in free enterprise?
All of the above
Encourage conservative consumption, efficient production
Act as messengers for consumers
Act as messengers for producers