Economics Review Chapters 5 and 6

Question 1

The quantity of a good or service that sellers are willing and able to sell at various prices

Accepted Answer

supply

Question 2

As prices increase, quantity supplied increases - this is called:

Accepted Answer

The law of supply

Question 3

Quantity demanded moves up and down along the demand curve in response to changes in

Accepted Answer

price

Question 4

When a price control sets an artificially low price, below market equlibrium, this is a

Accepted Answer

price ceiling

Question 5

A product that satisfies the same basic want as another is a

Accepted Answer

substitute good

Question 6

Which of the following is not a Supply shifter?

Accepted Answer

Consumer expectations

Question 7

When a price control sets an artificially high price, above market equilibrium, this is

Accepted Answer

price floor

Question 8

Price Elasticity is

Accepted Answer

the change in consumer behavior in response to price change

Question 9

Price floors lead to

Accepted Answer

surplus

Question 10

Market equilibrium is where

Accepted Answer

quantity demanded = quantity supplied

Question 11

Which of the following is considered an inelastic good?

Accepted Answer

gasoline

Question 12

During WWII the government severely restricted sales of meat, butter, tires, cars and gasoline

Accepted Answer

rationing

Question 13

Minimum wage is an example of

Accepted Answer

a price floor

Question 14

Price ceilings cause

Accepted Answer

shortage

Question 15

An illegal market set up because of government intervention in the market

Accepted Answer

A Black Market

Question 16

The quantity of a good or service consumers are willing and able to buy at various prices

Accepted Answer

demand

Question 17

A change in the price only - will shift the demand or supply curve.

Accepted Answer

False

Question 18

What happens when demand is greater than supply?

Accepted Answer

shortage

Question 19

Which of the following is NOT a demand shifter?

Accepted Answer

Technology

Question 20

Rent Control is an example of

Accepted Answer

a price ceiling

Question 21

This picture is an example of

Accepted Answer

Diminishing Marginal Utility

Question 22

The purpose of rationing in WWII was to ensure that:

Accepted Answer

everyone could get essential scarce goods

Question 23

A product that is used with another

Accepted Answer

Complementary Good

Question 24

The law of demand states that as price decreases

Accepted Answer

demand increases

Economics Review Chapters 5 and 6

Questions 24

Economics Review Chapters 5 and 6

Questions 24