What happens at "Equilibrium"?

Amount supplied equals the number demanded

Opportunity costs of consumer seeking good or service

Why push for efficient resource allocation?

Businesses operating for profit

Why ration certain goods?

Insure each person a chance to meet the standard of living

Market price is below equilibrium

Why is there is a huge sale in a department store this weekend?

Surplus, Competitor just opened near by

Company producing vital medicine disposes chemicals in land

Nonperishable item's supply is greater than demand

Good remains unsold or price drops

Why do fads cause shortages

Buyers and sellers have difficulty finding a price

Impact on market in equilibrium that suddenly experiences an increase of supply

Producers will produce less or cut prices

Why did Communist countries depend on Command Economies?

To promote equality among its society

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Economics: Chapter 6

27 termsStudBud Administration449 plays

Combing Supply and Demand...Prices

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Questions 27

Answers

1
Why do we have prices in the United States?
They just happened
To sell more products
To increase demand
To help make decisions
2
Which of the following will likely cause a shortage?
Price Ceiling
Price Floor
Market Price
Competitive Market
3
What happens at "Equilibrium"?
Shortage
Amount supplied equals the number demanded
Surplus
Price stops changing
4
Rent Control
Rationing
Price Floor
Price Ceiling
Surplus
5
Search Cost
Opportunity costs of consumer seeking good or service
Burden of employers seeking qualified employees
Quantity supplies exceeds that demanded
6
Why push for efficient resource allocation?
Educated buyers
Need to buy goods regardless of price
Businesses operating for profit
Government regulations
7
Why ration certain goods?
Prevent sellers from raising the price
Insure each person a chance to meet the standard of living
To reduce competition of big companies
To increase $ for military goods
8
Cause for Black Market
Supply Shock
Equilibrium
Price Floor
Rationing
9
A sudden shortage of supplies
Supply Shock
Search Cost
Excess Supply
Minimum Wage
10
Cause of Shortage
Quantity supplied greater than quantity demanded
Market price is below equilibrium
Government provides subsidies to producers
11
Demand and Supply are balanced
Equilibrium
Shortage
Price Ceiling
Disequilibrium
12
Why is there is a huge sale in a department store this weekend?
Surplus
Holiday
Competitor just opened near by
Shortage
13
Prices will go down with advancement of technology (Best Answer)
Hard bound books
Manual typewriter
Televisions
Airline tickets
14
Spill Over Cost
New technology allows for more workers to be hired
Successful company pushes new stores to open
Company producing vital medicine disposes chemicals in land
Sales increase during Christmas, new jobs available
15
Slopes downward
Supply
Demand
Elasticity
Inelasticity
16
Nonperishable item's supply is greater than demand
Prices will rise
Good remains unsold or price drops
Good is saved or price is raised
Good is discarded
17
Low Prices serve as signals to
Buy More
Produce More
Buy Less
18
Why do fads cause shortages
Buyers and sellers have difficulty finding a price
Laws prevent stores from changes prices quickly
Manufacturers charger higher prices than sellers
19
Least amount that can be paid for a good
Rationing
Price Floor
Rent Control
Supply Cost
20
Wages set above the equilibrium price....
More illegal immigrants are hired
Firms hire more workers
Firms hire fewer workers
Firms reduce work hours, and hire more workers
21
Market Equilibrium
Rarely Changes
Moving Target
Is NEVER fully achievable
is when supply prices are below demand prices
22
What has reduced search costs for buyers?
Faster cars
Mass transit
Internet
Flyers, Ads, Commercial
23
Impact on market in equilibrium that suddenly experiences an increase of supply
Producers increase production
Producers will produce less or cut prices
Consumers will buy more
Prices will rise
24
Price Floors often prevent WHAT in a Market Economy?
Shortages
Surplus
Markets reaching equilibrium
Angry producers
25
Product reflects the impact of advertising
Fad
Search Cost
Shortage
26
Why did Communist countries depend on Command Economies?
To prevent consumers from getting "Capitalist" goods
To avoid difficulties of a Free Market Society
To promote equality among its society
To limit the cost of production
27
Price floor on earnings
Employment guarantee
Market Rate
Base-Level Wage
Minimum Wage

Economics: Chapter 6 Flashcards | StudBud