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AP Microeconomics Unit 2A Review Flashcards | StudBud
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AP Microeconomics Unit 2A Review
AP Microeconomics Unit 2A Review
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1
An increase inconsumer income will decrease the demand for bologna___.
If bologna is an normal good.
If bologna is an inferior good .
If bologna is an complementary good.
2
If an increase in the price of good X causes a drop in demand for goodY___.
good Y is a complement to good X.
good Y is a normal to good X.
good Y is a substitue to good X.
3
If the increase in the price of one good decreases the demand foranother, then they are ____.
substitute goods
inferior goods.
complementary goods.
4
If the demand for potatoes increase whenever a person’s income increases, then potatoes are___.
an example of a normal good.
an example of a substitute good.
an example of a complementary good.
5
This TOP line in this graph illustrates?
price ceiling
supply curve
price floor
demand curve
6
This BOTTOM line in this graph illustrates?
price ceiling
demand curve
price floor
supply curve
7
This graph illustrates?
supply curve
demand curve
increase in supply
increase in demand
8
This graph illustrates?
demand curve
decrease in supply
supply curve
decrease in demand
9
An _______ in wages is a factor that causes a firm’s cost curves toshift upward.
increase
decrease
10
An effective price floor introduced in the market for rice will resultin an___.
decrease in the price of rice and an excess supply of rice.
increase in the price of rice and an excess supply of rice.
11
If a price ceiling is set ______the equilibrium price, there is no effect.
below
above
on
12
An increase in demand for air travel is most likely to….
Shift the demand for aircraft mechanics to the downward.
Shift the demand for aircraft mechanics to the left.
Shift the demand for aircraft mechanics to the right.
13
Improvement in production ___ for a certain good leads to increase in the supply of the good.
demand
supply
technology
14
Demand curve for cars is downward sloping b/c an increase in the price of cars leads to the___.
decreased use of other modes of transportation.
increased use of other modes of transportation.
15
Point A to B in this graph illustrates?
change in quantity demanded
shift on the demand curve
shift on the supply curve
change in quantity supplied
16
What will inevitably cause a shift in the market for workers with acertain skill?
decrease in the demand for goods produced by these workers.
increase in the demand for goods produced by these workers.
17
This graph illustrates?
decrease in supply
demand curve
supply curve
decrease in demand
18
This graph illustrates?
demand curve
increase in supply
increase in demand
supply curve
19
This graph illustrates?
supply curve
increase in demand
demand curve
increase in supply
20
A direct effect of this price support would be a product surplus.
price ceilings
price floor
equilibrium price
21
This graph illustrates?
increase in supply
supply curve
increase in demand
demand curve
22
______is defined as difference between the value that consumers place on good and price.
Producer surplus
consumer shortage
consumer surplus
23
A decrease in the price of substitute product and improvement in production technology will__.
cause a rise in the price of a product.
cause a fall in the price of a product.
24
The intention of the government in creating the _____ is to assist the producers of the good.
price floor
equilibrium price
price ceiling
25
What happens if the government imposes a price ceiling below the equilibrium price of a good?
There will be a shortage in the market
There will be a surplus in the market
