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Economics Fundamentals Flashcards | StudBud
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Economics Fundamentals
Economics Fundamentals
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#Microeconomics #supplyanddemand
Flashcards
31 cards
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Questions
31
Answers
1
A technological advancement in production does what?
Increases demand
Increases quantity supplied
Increases supply (the whole line)
Decreases demand
2
If quantity supplied has increased, and demand has increased, price (P2) will
Stay the same
Increase
Decrease
3
If nothing else changes, a lower price will cause a __________
higher quantity supplied
lower demand
higher quantity demanded
lower quantity demanded
4
Andrew went to BB for a TV for $299. He doesn't want a 2nd one. This illustrates
Price effect
Diminishing demand return
Substitution effect
Diminishing marginal utility
5
According to the law of demand, as the price of calculators decreases…
Production of calculators will decrease
The quantity of calculators demanded will increase
The demand for calculators will fall
The quantity of calculators demanded will decrease
6
Supply and demand go together like all of the following EXCEPT
Bey and Jey
Bert and Ernie
Battle Royale and Hunger Games
Peanut butter and jelly
7
Outside of the curve on the production possibilities graph you will find
All of the above
Future tech innovation
Something impossible
Future increase in labor force
8
All of the following are true about the concept of demand EXCEPT
It involves prices at a particular point of time
It shows how much consumers will purchase at various prices
It involves the producer's side of the market
It involves the buyer's side of the market
9
The law of supply says producers will offer ________ of their product as price goes up
less
more
the same amount
10
If nothing else changes, a higher price will cause a __________
both A and C
A higher quantity supplied
A lower quantity demanded
A higher demand
11
Which of the following will shift the demand curve for potato chips to the left?
An increase in the price of coca cola and hot dogs
An increase in income, if potato chips are a normal good
An increase in the price of potato chips
A decrease in the price of tortillas
12
Prices ration. This means all of the following EXCEPT
Supply and demand benefits everyone
The price system allocates distribution of products
Some people will be priced out of the market
Some people will be able and willing to pay the price
13
At what prices do you usually have a surplus?
above equilibrium
market-clearing price
below equilibrium
equilibrium
14
The law of demand says that people will want to buy ________ of something as the price goes up
more
the same
less
15
Opportunity cost could be illustrated with all of the following examples EXCEPT
Choosing to study economics rather than history
Getting two elephants and no monkeys for your zoo
Accounting methods for inefficiency of supply
Working at a paint job rather than going to a party
16
If the price of cameras goes down, what will happen to the demand for camera lenses?
It will stay the same
It will go up
You cannot answer the question with the current data.
It will go down
17
A good that is used in place of another good is?
Substitute good
Capital good
Complimentary good
Consumer good
18
When supply is greater than demand, you get a __________
good price
equilibrium
shortage
surplus
19
At what prices would you have a shortage?
equilibrium
anything over $10
below equilibrium
above equilibrium
20
If demand for a product is inelastic this means that?
Demand is not affected by a change in price.
Demand is affected by a price change
Substitutes are available for the product
People want to buy it
21
An increase in the number of consumers in the market place does what?
reduces supply
increases demand
decreases prices
increases supply
22
The following is an inelastic good because you cannot increase production very quickly
Cars
Eclipse glasses
Bacon
Fidget spinners
23
The place where supply meets demand is called ______________
Supply center
Market Price
Equilibrium or market-clearing price
Demand equilibrium
24
The production possibilities curve shows trade offs of two goods. This illustrates
Scarcity
Opportunity cost
Supply and demand
Equilibrium
25
With demand staying the same, if the supply of hot dogs reduced, what will happen to the price?
It will decrease
It will stay the same
It will increase
Not enough information to answer the question.
26
When demand is greater than supply, you get a _____________
high cost
surplus
equilibrium
shortage
27
Chase is thirsty for a pop. He's not that thirsty for a second one. What does this illustrate?
Monopolistic competition
Diminishing marginal Utility
Equilibrium price
Law of demand
28
Who dictates demand in a free market economy?
Government
Consumer
Corporations
Producer
29
Which sentence describes market conditions at equilibrium/market clearing price?
Supply and demand are equal
Supply is greater than demand
There is no supply or demand
Demand is greater than supply
30
A professional athlete is a rare talent: he or she is an example of ________ in economic terms.
Private property
Scarcity
Free enterprise
Marginal cost vs. marginal benefit
31
Who dictates supply in a free market economy?
Venture capitalists
Consumer
Government
Producer
