Unit 2 Test

Question 1

Law of Diminishing Marg Utility means Utility & Units of Goods have a(n) ________ relationship

Accepted Answer

Inverse

Question 2

The Incentive of Greater Profits turns _______suppliers into _______ suppliers.

Accepted Answer

potential / actual

Question 3

We arrive at the new Equilibrium b/c ______

Accepted Answer

inputs got cheaper

Question 4

If the Govt. increases a subsidy (to produce), Supply will _______

Accepted Answer

Increase

Question 5

An increase in the cost of an Input will cause a(n) _________ in Supply.

Accepted Answer

Decrease

Question 6

The variable input that can most easily be changed in the Short Run is ______

Accepted Answer

Labor

Question 7

The slope of an Inelastic Demand curve tends to be much more ________

Accepted Answer

vertical

Question 8

Price Floors generally cause a(n) ___________

Accepted Answer

surplus

Question 9

This shift would be caused by _____

Accepted Answer

better technology

Question 10

An Elastic Good is more likely a _____

Accepted Answer

Want

Question 11

Total Revenue = Quantity Sold x ________

Accepted Answer

Price

Question 12

An Elastic Good generally has more _________

Accepted Answer

Substitutes

Question 13

Price and Quantity have a(n) ____________ relationship on a Demand curve.

Accepted Answer

Inverse

Question 14

This shift would be caused by _______

Accepted Answer

increased population

Question 15

When your "purchasing power" changes due to a Price change, this is known as

Accepted Answer

Income Effect

Question 16

A change in Price will cause a change in _________

Accepted Answer

Qs

Question 17

If your Income increases you will purchase _____________ of an Inferior Good.

Accepted Answer

LESS

Question 18

When the Price of a Good goes up, you actually now have__________ "purchasing power"

Accepted Answer

Less

Question 19

The Law of Demand states that if Price goes up, Quantity Demanded goes

Accepted Answer

DOWN

Question 20

If the Price of Jelly goes up, Demand for Peanut Butter will _________

Accepted Answer

Go Down

Question 21

A shortage occurs when Demand is ________ than Supply.

Accepted Answer

greater

Question 22

Equilibrium refers to when Q supply & Q demand are the _____

Accepted Answer

same

Question 23

For a Supply Curve P & Q have a(n) _______ relationship

Accepted Answer

Direct

Question 24

In the Law of Diminishing Returns, Stage 3 is ___________ Returns

Accepted Answer

Negative

Unit 2 Test

Questions 24

Unit 2 Test

Questions 24