How does specialization affect production?

It makes workers more efficient.

How is the total cost of a factory or other production site determined?

fixed costs plus variable costs

Which is an example of the law of demand at work?

Demand for pizza rises when the price of pizza falls.

What happens after the demand for a fad drops?

Excess supply makes the good easy to obtain.

What does elasticity of demand measure?

the amount of time consumers need to change their demand

What does a supply schedule show?

supply for a good at many prices

If a seller expects theprice of a good to rise in the future, the seller will

store these goods until the price goes up.

Which of these best describes a supply curve?

It always rises from left to right.

What happens when the price of Item A increases?

Consumers buy the cheaper Item B as a substitute for Item A.

What does it mean when you have demand for a good or service?

You are willing and able tobuy the good at the given price.

How does an increase in population affect the demand curve?

The entire curve shifts to the right.

When is a market at equilibrium?

when quantity demanded equals quantity supplied

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Chapter 4-6 Review

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Questions 17

Answers

1
How does rationing encourage black markets?
Rationing creates high demand.
Rationing causes criminal behavior.
Rationing creates high supply.
Rationing wrecks the market.
2
How does specialization affect production?
It slows down production.
It makes workers more efficient.
It increases cost.
It decreases revenue.
3
How is the total cost of a factory or other production site determined?
marginal cost plus variable costs
marginal cost plus fixed costs
fixed costs plus variable costs
marginal cost plus output cost
4
What is one reason governments give farmers subsidies?
to help people forget past shortages
to help farmers pay back debts
to keep food supplies up
to increase the cost of production
5
Which is an example of the law of demand at work?
The price of pizza falls when demand for pizza falls.
Demand for pizza goes down when tacos become popular.
Demand for pizza rises when the price of pizza falls.
The price of pizza goes up when the price of cheese goes up.
6
What happens after the demand for a fad drops?
Excess supply makes the good easy to obtain.
Shortage makes the good difficult to obtain.
The quantity supplied goes down, and the price goes up.
The quantity supplied and the price both go up.
7
What does elasticity of demand measure?
the amount of time consumers need to change their demand
the amount of time consumers need to change their demand
a decrease in the quantity demanded
an increase in the quantity available
8
What does a supply schedule show?
quantity supplied at one price
changes in costs of labor and parts
factors that could influence supply
supply for a good at many prices
9
If a seller expects theprice of a good to rise in the future, the seller will
place these goods on the market immediately.
increase the price of the good now.
increase production of the good.
store these goods until the price goes up.
10
Which of these best describes a supply curve?
It rises if supply is elastic.
It falls if supply decreases.
It always falls from left to right.
It always rises from left to right.
11
What happens when the price of Item A increases?
Item A becomes more popular.
Consumers buy the cheaper Item B as a substitute for Item A.
The substitutes for Item A also increase in price.
Consumers buy Item A even if they don't particularly want it
12
How does a firm respond to a higher demand for its goods?
There is no set response.
It rations goods.
It raises prices.
It cuts prices.
13
What does it mean when you have demand for a good or service?
You can afford the good butmay be unwilling to buy it
You are able to buy the good but not at the given price.
You are willing and able tobuy the good at the given price.
You want the good but may not have the money for it.
14
If prices rise and income stays the same, what is the effect on demand?
Demand stays the same.
More is bought of some goods and less of others.
Fewer goods are bought.
More goods are bought.
15
How does an increase in population affect the demand curve?
A point on the curve moves up.
A point on the curve moves down.
The entire curve shifts to the left.
The entire curve shifts to the right.
16
When is a market at equilibrium?
when prices equal the cost of production
when quantity demanded equals quantity supplied
when unsold goods begin to pile up
when suppliers begin to reduce prices
17
How is profit determined?
total revenue minus total cost
total revenue plus total cost
marginal revenue plus marginal cost
marginal revenue minus marginal cost

Chapter 4-6 Review Flashcards | StudBud