Economists use a supply curve to

show the law of supply in graph form

prices are too high relative to consumer demand

The government uses excise taxes to

decrease demand for products it doesn't want people to use

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Demand Supply and Prices

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Review for chapters 5 and 6 test

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Questions 20

Answers

1
A baseball team limiting the amount charged for buying tickets is called
setting an equilibrium price
setting a price ceiling
setting a price floor
setting a minimum price
2
When producers supply more, equilibrium price will
fluctuate
fall
stay the same
rise
3
The opportunity to Quiz is diminished exponentially by
Paying attention in class and participating
Taking notes
bugging Mrs. Watson to play
None of these
4
As store owner decides to charge less for his products is an example of
setting a price floor
rationing a product
competitive pricing
setting a price ceiling
5
On a demand & supply graph, an increase in demand causes the demand curve to
shift to the left
shift to the right
fluctuate both right and left
stay in the same position
6
The additional expense of producing one more unit of a product is called
marginal cost
marginal labor
marginal revenue
marginal product
7
If a producer supplies 25 pizzas, market equilibrium is reached when consumers demand
35 pizzas from this producer
20 pizzas from this producer
25 pizzas from this producer
30 pizzas from this producer
8
The demand curve is plotted by using a product's
prices and qualities
prices and quantities
production costs and quantities
production costs and qualities
9
Economists use a supply curve to
show the law of supply in table form
show the law of supply in graph form
show the law of supply in a written description
show the law of supply in chart form
10
A shortage of a particular good is often a signal for a producer to
shift production to another good
lower production of that good
lower the prices of that good
raise the prices of that good
11
An economic exchange that occurs without government involvement is called
rationing
a price ceiling
a black market
shortage
12
Demand can be changed by
the number of products
productivity
consumer taste
the number of substitutes
13
To make sure an army receives needed goods during war the government would establish
shortage
price ceiling
black market
rationing
14
Surplus happens when
prices are too low relative to consumer demand
prices are too high relative to producer demand
prices are too low relative to producer demand
prices are too high relative to consumer demand
15
The change in total output that results from hiring an additional worker is called
marginal product
marginal cost
marginal revenue
marginal labor
16
Marginal revenue equals
total cost
marginal cost
total profit
product price
17
Total cost is the sum of
fixed costs and marginal costs
fixed costs and variable costs
marginal costs and varible costs
fixed, marginal and variable costs
18
The amount of goods and services a person can produce in a given time is called
labor input
labor output
labor productivity
labor intensive
19
The ease of changing production to respond to price change determines
how elastic the product is
how much fixed costs are
how expensive the product is
how regulated the business is
20
The government uses excise taxes to
encourage business to invest in technology
decrease demand for products it doesn't want people to use
increase the demand for products it wants people to use
discourage business fro importing too many resources

Demand Supply and Prices Flashcards | StudBud