An unusually warm winter...

shifts the demand curve for gloves leftward

An increase in the number of fast-food restaurants...

increases the supply of fast-food meals

When economists speak of preferences as influencing demand, they are referring to...

an individual's attitudes towards goods and services

Which of the following will shift the supply curve for good X leftward?

an increase in the cost of the machinery used to produce good X

A surplus occurs when the price is...

greater than the equilibrium price

The price of a gallon of milk falls. Which of the following is a possible cause?

a discovery that milk causes diabetes

A complement is a good...

used in conjunction with another good

Wants, as opposed to demands...

are the unlimited desires of the consumer

The price of jet fuel falls. This fall shifts the...

supply curve of airplane trips rightward

A shortage occurs when the price is...

less than the equilibrium price

A substitute is a good...

that can be used in place of another good

The price of a good will fall if...

there is a surplus at the current price

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Unit 2: The Market and Trade

25 termsStudBud Administration565 plays

Unit 2 Economics Review

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Questions 25

Answers

1
Which of the following goods is the best example of a natural monopoly?
First-class mail
Diamonds
Natural Gas
A patented good
2
If there is a surplus of a good, then the quantity demanded ___________ the quantity supplied and the price will ______.
is less than; rise
is greater than; rise
is less than; fall
is greater than; fall
3
An unusually warm winter...
shifts the demand curve for gloves leftward
shifts the supply curve of gloves leftward
shifts the demand curve for gloves rightward
shifts the supply curve of gloves rightward
4
An increase in the number of fast-food restaurants...
increases the demand for substitutes for fast food restaurants
raises the price of fast-food meals
increases the supply of fast-food meals
increases the demand for fast-food meals
5
Scarcity guarantees that...
demands will exceed wants
demands will be equal to wants
most demands will be satisfied
wants will exceed demands
6
When economists speak of preferences as influencing demand, they are referring to...
an individual's attitudes towards goods and services
the excess of wants over available supplies
the availability of a good to all income classes
directly observable changes in price and income
7
Which of the following will shift the supply curve for good X leftward?
a situation in which quantity demandeds exceeds quantity supplied
an increase in the cost of the machinery used to produce good X
a technological improvement in the production of good X
a decrease in the wages of workers employed to produce good X
8
Which of the following market types has the fewest number of firms?
Oligopoly
Perfect Competition
Monopoly
Monopolistic Competition
9
A surplus occurs when the price is...
greater than the equilibrium price
equal to the equilibrium price
none of the above
less than the equilibrium price
10
The demand curve for a good shifts leftward if income __________ or the expected future price ___________.
decreases; rises
increases; falls
decreases; falls
increases; rises
11
The price of a gallon of milk falls. Which of the following is a possible cause?
a decrease in the price of oatmeal, a complement to milk
an increase in the average household, with milk being a normal good
a discovery that milk causes diabetes
a drought that reduces supplies of feed grains fed to cows
12
The law of demand states that the quantity of a good demanded varies...
directly with income
directly with population
inversely with the price of substitute goods
inversely with its price
13
A complement is a good...
used in conjunction with another good
used instead of another good
of higher quality than another good
of lower quality than another good
14
Wants, as opposed to demands...
are the goods the consumer has acquired
are the unlimited desires of the consumer
depend on the price
are the goods the consumer plans to acquire
15
Which of the following pairs of goods are most likely substitutes?
compact discs and compact disc players
lettuce and salad dressing
cola and lemon lime soda
peanut butter and gasoline
16
A consumer might consider in-line skates and elbow-pads to be...
substitutes
complements
unrelated goods
products with upward sloping demand curves
17
Which of the following is the best example of a perfectly competitive market?
farming
diamonds
soft drinks
athletic shoes
18
The price of jet fuel falls. This fall shifts the...
supply of airplane trips leftward
demand curve for airplane trips rightward
supply curve of airplane trips rightward
demand curve for airplane trips leftward
19
Which of the following market types has a large number of firms that sell similar but slightly different products?
Monopoly
Monopolistic Competition
Oligopoly
Perfect Competition
20
A shortage occurs when the price is...
greater than the equilibrium price
less than the equilibrium price
none of the above
equal to the equilibrium price
21
A substitute is a good...
of lower quality than another good
that can be used in place of another good
of higher quality than another good
that is not used in place of another good
22
Patents...
all of the above
Stimulate innovation
Encourage the invention of new products and production methods
Are exclusive rights granted to the inventor of a product or service
23
The price of a good will fall if...
the price of a complement falls
the current price is less than the equilibrium price
there is a surplus at the current price
the quantity demanded exceeds the quantity supplied
24
Which of the following market types has only a few competing firms?
Perfect Competition
Oligopoly
Monopolistic Competition
Monopoly
25
Which of the following market types has all firms selling almost identical products?
Monopoly
Oligopoly
Monopolistic Competition
Perfect Competition

Unit 2: The Market and Trade Flashcards | StudBud