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Unit II Review: Supply, Demand, Equilibrium, Elasticity, Money, and Competition Flashcards | StudBud
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Unit II Review: Supply, Demand, Equilibrium, Elasticity, Money, and Competition
Unit II Review: Supply, Demand, Equilibrium, Elasticity, Money, and Competition
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1
Functions of money: Buying a pizza for dinner tonight.
standard of value
store of value
medium of exchange
2
Which is an example of a government price ceiling?
rent control
minimum employment
market equilibrium rate
base-level wage
3
Which of the following cause a shift in demand:?
Change in technology
Change in government tax structure
An increase in consumers' income
Suppliers' expectations of a price increase
4
The basic principle of the law of demand is:
Lower the price, the less consumers will buy
Lower the price, the more consumers will subsitute
Higher the price, the more consumers buy
Lower the price, the more consumers will buy
5
Pete's Pastries expects higher prices during the holidays. Which graph is affect on supply?
Graph 4
Graph 3
6
How can expectations about future price affect consumer demand?
Immediate demand rises if price expected to rise in future
Immediate demand to related to future price expectations
Price expected to stay same, immediate demand will decrease
Good expected to be plentiful, demand not affected
7
A price of $60 in this market will result in
equilibrium
price ceiling
a surplus
a shortage
8
Type of competition with 1 firm, complete price control, impossible to get into: utilities
monopoly
monopolistic competition
oligopoly
pure competition
9
Competition with many firms, some price control,product differentiation, advertising: fast food
monopoly
monopolistic competition
oligopoly
pure competition
10
Type of competition with no control over price, many firms, easy to get into: fruits & veggies
pure competition
monopoly
oligopoly
monopolistic competition
11
What might cause a shift in the curve from B to C?
break-through new technology
Increased cost of raw materials
Average annual income declines
Price of complementary good goes down
12
Club soda found to cause high blood pressure. Which graph is the shift in demand for club soda?
Graph 2
Graph 1
13
Fifteen companies stop producing hoverboards. Which graph shows the supply of hoverboards?
Graphs 3
Graph 4
14
Which leads to an increase in supply?
Change in the law of supply
An increase in the cost of raw materials
Decrease in the cost of raw materials
Diminishing marginal returns
15
What is it called with producers are not sensitive to changes in price for their product?
inelastic supply
inelastic demand
elastic supply
elastic demand
16
What is the best definition of a demand curve?
Market forces push toward equilibrium
Graphic respresentation of a demand schedule
Excess demand in the market
Payment to the government on the production of a good
17
Which price level best reflects the market at equilibrium?
$10
$12
$14
$13
18
To an economist, consumer demand means:
Consumer is willing and able to buy at current price
Consumer able to buy, but not at current price
Consumer wants to buy, but may not have the money
Consumer able to afford, but unwilling to buy
19
What is the best definition of a supply curve?
shows excess supply in the market
graph of the quantity supplied of a good at different prices
graphic representation of supply determinants
shows how supply of goods is kept in balance
20
What line indicates an increase of supply?
C
D
B
21
Equilibrium will be reached at
Price $20 Quantity 200
Price $60 Quantity 100
Price $40 Quantity 150
Price $40 Quantity 50
22
Improved technology in production is connected to:
demand
supply
23
Functions of money: Depositing your paycheck into your bank account.
standard of value
medium of exchange
store of value
24
Competition with 2-12 firms, some price control, not easy to get into: cereal
oligopoly
pure competition
monopolistic competition
monopoly
25
Dealer pricing on cars ends 2/28, which graph shows the demand for cars on 2/15?
Graph 2
Graph 1
26
The price of a pound of coffee has tripled. Which graph the shift in the demand for tea?
Graph 1
Graph 2
27
When the government sets a price floor on earnings, it is called
minimum wage
base-level wage
employment guarantee
market equilibrium
28
Price of hot dog buns rises; Demand curve for hot dogs shifts left. What could cause this?
Demand for hot dogs decreases
Supply for hot dogs decreases
Supply for hot dogs increases
Demand for hot dogs increases
29
What might cause a shift in the curve from C to A?
Government add usage tax
Popular toy loses appeal
Dramatic population increase
Suppliers expect higher prices in the future
30
What letter indicates an increase in equilibrium quantity?
E
C
D
31
What is the basic principle of the law of supply?
Higher the price, large the quantity produced
If price of good falls, new firms may enter the market
Lower the price, large the quantity consumed
If price of a good rises, some firms will produce less
32
Most people will drink either Mr. Pibb or Dr. Pepper because these are considered _____.
Complements
Substitutes
Inelastic demand
Supply
33
What line indicates decrease in demand?
B
A
C
34
What would be the effect of higher labor costs on the supply curve of turnip pies?
Curve is not affected
Shifts right
Reverses direction
Shifts left
35
Which of the following is an example of lower production costs brought about by technology?
robots working 24 hours a day on an assembly line
making of bread in local shops rather than large bakiers
importing fresh vegetables instead of using canned
delivery cost of gas to consumers by diesel trucks
36
Consumer incomes are connected with which of the following:
demand
supply
37
If sellers expect the price of a good to rise in the future, they will
put more goods on the market now
store their goods now and plan to sell more in future
raise their prices now
set prices according to the law of demand
38
What letter indicates an increase in equilibrium price?
C
D
E
39
New regulations require cars to have anti-theft devices. Which graphs shows the supply of cars?
Graph 4
Graph 3
40
Functions of money: The $199.99 price tag on the new phone you want.
standard of value
store of value
medium of exchange
