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AP- Macro: Demand, Supply, & Currencies Flashcards | StudBud
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AP- Macro: Demand, Supply, & Currencies
AP- Macro: Demand, Supply, & Currencies
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Demand, Supply, & Currencies
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1
When the price of a good rises, the quantity supplied of the good also rises. This is
the law of increasing costs.
the law of diminishing returns.
the law of demand.
the law of supply.
2
These Goods are:
Complements
Normal Goods
Inferior Goods
Substitutes
3
The unique point at which the supply and demand curves intersect is called
market unity.
equilibrium.
cohesion.
an agreement.
4
The market in which foreign currencies are traded is known as the:
commodities market.
foreign exchange market.
bond market.
stock market.
5
The movement from point A to point B on the graph would be caused by
a decrease in the price of a substitute good.
an increase in price.
an increase in income.
a decrease in price.
6
Which of the following always results in an increase in price and quantity?
an increase in demand with no change in supply
a decrease in demand and supply
an increase in supply with no change in demand
an increase in demand and supply
7
When there is a shortage in a market,
there is downward pressure on price.
the price must be above equilibrium.
the market could still be in equilibrium.
there is upward pressure on price.
8
On a demand curve an increase in price, causes a
an increase in quantity deamded
a decrease in demand
an increase in demand
decrease in quantity demanded
9
At a price above 60 in this market
would be in equilibrium
there would be a shortage
there would be a surplus
demand would increase
10
Based on the graph, Hamburger Helper is a
Normal Good
Inferior Good
Substitute Good
Complement Good
11
What would cause this shift in the Peso Market?
Increase in U.S. incomes
Increase in Mexican interest rates
Increased Mexican Tourism to the U.S.
Decrease in Mexican Imports from the U.S.
12
All things equal, if assembly-line technology improves, then the
Price of cars falls and quantity decreases
Price and quantity of cars increases
Price of cars falls and quantity increases
Price and quantity of cars increases
13
What will happen in the rice market if buyers are expecting higher prices in the near future?
The demand for rice will increase.
The demand for rice will decrease.
The demand for rice will be unaffected.
The supply of rice will increase
14
If the EU put a tariff on American products, we would expect
the demand for the dollar to increase, appreciating the $ US
the supply of the dollar to decrease, depreciating the $ US
the demand for the dollar to decrease, depreciating the $US
the supply of the euro to decrease, depreciating the euro.
15
If the U.S. dollar appreciates relative to currencies in other countries, then U.S. imports:
and exports will both decrease.
will increase and exports will decrease.
and exports will both increase.
will decrease and exports will increase.
16
Which of the following is NOT a demand shifter?
income
expectation of future prices
price of resources
number of buyers
17
What would cause this change in the the U.S. Dollar Market?
US has higher income than Japan
Japan boycotts US products
US has higher prices than Japan
US has higher interest rates than Japan
18
If cows get a disease at the same time a new ad campaign increases the popularity of milk then
price decreases, quantity is unknown
price increases, quantity is unknown
quantity increases, price is unkown
quantity decreases, prise in unknown
19
What would cause the increase in demand for U.S. dollars on this graph?
Europe is having fast economic growth
Interest rates in Europe are higher
there is inflation in the U.S.
Americans are going on vacation in Europe more
20
A technological advancement
will shift the demand curve to the left.
will shift the demand curve to the right.
will shift the supply curve to the left.
will shift the supply curve to the right.
21
Economists say that the quantity of sugar purchased has risen, but are unsure if price changed then
there's an increase in supply and an increase in demand
there is equilibrium in the sugar market.
there's a decrease in supply & an increase in demand
there's an increase in supply & a decrease in demand
22
Suppose that the value of the euro fell from $1.47 on Tueday to $1.40 on Friday. This shows
both the Euro and the Dollar appreciated
both the Euro and the Dollar depreciated
the Euro appreciated and the dollar depreciated
the Euro depreciated and the dollar appreciated
23
An earthquake destroys several cod canneries. Which of the following would NOT happen
The equilibrium price would rise
Buyers would not be willing to buy as much at each price
The supply would decrease.
Sellers would not be willing to produce and sell as much
24
The
Sun
and the
Mirror
are British Newspapers. Based on the graph these goods are:
inferior goods
normal goods
complements
substitutes
25
If a good is "normal," then an increase in income will result in
an increase in the demand for the good.
no change in the demand for the good.
a decrease in the demand for the good.
