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Unit 2 Review - Economics Flashcards | StudBud
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Unit 2 Review - Economics
Unit 2 Review - Economics
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Unit 2 Review
Flashcards
31 cards
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Practice quiz
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Questions
31
Answers
1
One more time... True or False: Price shifts supply and demand curves
I really am confused
False
True
It's so false that it hurts to read that statement
2
A price ceiling is typically located ______ the point of equilibrium.
below
above
3
True or False: Entry into a perfect competition has many barriers
True
False
4
DirecTV and Cox are an example of a _____.
perfect competition
oligopoly
technological monopoly
natural monopoly
5
Peanut butter and jelly are complementary goods. PB's price doubles. Demand for jelly...
decreases
becomes inelastic
stays the same
increases
6
Which is NOT a shifter of demand?
income
number of buyers
price of related goods
technology
7
"A market structure in which a few large, profitable firms dominate a market"
perfect competition
natural monopoly
monopoly
oligopoly
8
At 1000 videos supplied, what is the price?
$12
$18
$20
$10
9
Perfect competition is characterized by all of the following EXCEPT:
large number of buyers and sellers
identical products
informed buyers and sellers
sellers working together to set prices
10
Milk and cereal are...
elastic
complements
substitutes
inelastic
11
The price of Coca Cola triples, people start buying more Pepsi. This is an example of:
Complements
Substitution effect
Income effect
Elasticity
12
What is the quantity demanded at $16?
400
800
200
0
13
A subsidy is an example of...
shortage
Substitution Effect
government intervention
equilibrium
14
An increase in supply causes the supply curve to shift to the...
right
left
15
A decrease in supply causes the supply curve to shift to the...
left
right
16
"A good that decreases in demand when consumer income rises" is called...
shortage
inferior good
normal good
non-desirable
17
True or False: Price shifts the demand curve
True
False
18
Increased competition benefits consumers because...
Prices increase
Sellers negotiate with other sellers
They do not need to be informed
Prices are kept low and competitive
19
Minimum wage is an example of...
surplus
price floor
equilibrium
price ceiling
20
The company Apple is an example of _____.
natural monopoly
government monopoly
geographic monopoly
technological monopoly
21
A rural town only has one doctor. This is an example of a ____.
technological monopoly
geographic monopoly
government monopoly
natural monopoly
22
Price floors are located ______ the point of equilibrium
above
below
23
Which is NOT a shifter of supply?
technology
future expectations
number of sellers
tastes and preferences
24
True or False: Price shifts the supply curve
True
False
25
You consume more of a product, the decrease in satisfaction that you get from that product is..
Substitution Effect
Law of Diminishing Marginal Utility
Law of Diminishing Returns
Income Effect
26
An increase in demand causes the demand curve to shift to the...
left
right
27
What are the two barriers to entry in a market?
technology, government regulations
start up costs, technology
willing, able
government regulations, start up costs
28
The point where supply and demand meet is called _____.
price ceiling
equilibrium
price floor
surplus
29
When a major car company lowers its prices, other car makers will probably...
lower their prices
go out of business
maintain existing prices
raise prices
30
A surplus occurs when...
quantity supplied is less than quantity demanded
new sellers enter the market
quantity demanded is the same as quantity supplied
quantity supplied is greater than quantity demanded
31
A decrease in the demand causes the demand curve to shift to the...
right
left
