stud
bud
Sign up
Log in
Home
Library
Explore
SAT
More
Dr. Toedt's Econ Unit 2 Review Flashcards | StudBud
Explore
/
Dr. Toedt's Econ Unit 2 Review
Dr. Toedt's Econ Unit 2 Review
60 terms
·
StudBud Administration
·
126 plays
Imported from external platform
Flashcards
60 cards
F
Practice quiz
P
Host live
L
Questions
60
Answers
1
In which kind of economy are prices are influenced by supply and demand?
Command
Traditional
Mixed
Market
2
When the supply curve shifts, it changes the ____ and _____ of the equilibrium
demand, supply
quantity, demand
price, supply
price, quantity
3
When demand is greater than supply, a _________ will result
surplus
equilibrium
shortage
balance
4
Price has increased causing the supply curve to shift to the left.
True
False
5
If "supply shifts left," supply is...
decreasing
not changing
increasing
6
Changes in price shift the supply curve, no matter what they are
True
False
7
Substitute goods?
potato flakes & real potatoes, baseball & glove
Taco Johns & Taco bell, cakes & pies, iPhone & Android
Kindle & printed books
8
A new ad campaign becomes popular
Demand decreases, Equilibrium Price decreases
Supply decreases, Equilibrium Price increases
Supply increases, Equilibrium Price decreases
Demand increases, Equilibrium Price increases
9
Why does demand generally become more elastic over long periods of time?
Because consumers tend to find substitute goods to buy instead
Because producers tend to find substitute goods to buy instead
Because a lack of substitutes can make demand inelastic for a good
Because a lack of substitutes can make demand elastic for a good
10
What label do you put on the y axis of a supply/demand curve (the vertcial axis or up/down axis)
Price
Supply
Demand
Quantity
11
If "demand shifts left," demand is...
increasing
decreasing
not changing
12
If there is greater demand than supply...
Everything is free
Prices stay the same
Prices fall
Prices rise
13
The magic point where supply and demand connects is
Adam Smith land
equilibrium
a price ceiling
a price floor
14
A rival company lowers its prices
Supply decreases, Equilibrium Price increases
Demand increases, Equilibrium Price increases
Demand decreases, Equilibrium Price decreases
Supply increases, Equilibrium Price decreases
15
Suppose that demand is elastic; what will happen to the company’s total revenue if it raises the price?
None of the above
It will not change the company's total revenue
It will reduce the company’s total revenue
It will increase the company’s total revenue
16
A “shortage” is when the producer:
Did not supply enough quantity to meet demand and lost money
Supplied as much quantity as the market demanded and made more money
Supplied more quantity than the market demanded and lost money
Supplied more quantity than the market demanded and made more money
17
Consumers’ desire to own something and their ability to pay for that something is called:
Equilibrium Price
Demand
Supply
Ceteris Paribus
18
Complements, or complementary goods...
Are goods that go well together- when one sells more, the other does too
Are goods that don't go well together- they don't affect each others' sales
19
A stock market crash causes many people to lose money
Supply increases, Equilibrium Price decreases
Demand increases, Equilibrium Price increases
Supply decreases, Equilibrium Price increases
Demand decreases, Equilibrium Price decreases
20
Why does the availability of substitutes affect price elasticity for a particular good?
Because consumers tend to find substitute goods to buy instead
Because producers tend to find substitute goods to buy instead
Because a lack of substitutes can make demand elastic for a good
Because a lack of substitutes can make demand inelastic for a good
21
If "supply shifts right," supply is...
decreasing
increasing
not changing
22
Price Elasticity of Demand can change over time because......
Over time substitutes are available
More can be supplied
Price will decrease
Price will increase
23
When demand exceeds supply.
low prices
equilibrium
surplus
shortage
24
A new technology allows faster production
Supply decreases, Equilibrium Price increases
Demand decreases, Equilibrium Price decreases
Supply increases, Equilibrium Price decreases
Demand increases, Equilibrium Price increases
25
Which is NOT an example of complementary goods?
Bike and car
Boat and petrol
Car and petrol
Bike and helmet
26
In general, when is equilibrium price reached?
When supply is less than demand
When supply is equal to demand
When supply and demand both shift right
When supply is greater than demand
27
When Creating a supply and demand curve how do you label each axis?
X=Quantity Y=Price
X= number of buyers Y=number of sellers
X=Quantity Y= number of buyers
X=Price Y= number of sellers
28
When demand increases, the demand curve shifts
Right
Left
29
Substitute goods
Bacon and eggs
French fries and ketchup
Butter and margarine
Pancakes and syrup
30
Which of the following might have caused the demand curve to shift right?
Resource costs dropped
Consumer preferences for the product improved
Consumer income fell
The number of consumers fell
31
If "demand shifts right," demand is...
increasing
not changing
decreasing
32
A blight or drought kills off crops used to produce certain product
Demand increases, Equilibrium Price increases
Supply decreases, Equilibrium Price increases
Demand decreases, Equilibrium Price decreases
Supply increases, Equilibrium Price decreases
33
A “surplus” is when the producer:
Supplied more quantity than the market demanded and lost money
Supplied more quantity than the market demanded and made more money
Did not supply enough quantity to meet demand and lost money
Supplied as much quantity as the market demanded and made more money
34
When demand goes up, supply must ____ in the long run.
increase
decrease
stay the same
35
Substitute Goods
increase in the price of one leads to a decrease in the demand for th other
increase in the price of one leads to a increase in the demand for the othe
increase in the price of one leads to an increase the demand for the other
decrease in the price of one leads to an increase in the demand the other
36
Price elasticity of demand measures...
availability of substitutes
how sensitive consumers are to a change in price
buyers knowledge of the product
buyers ability to switch
37
Government increases taxes on raw beef shipped by farmers:
Supply decreases, Equilibrium Price increases
Supply increases, Equilibrium Price decreases
Demand decreases, Equilibrium Price decreases
Demand increases, Equilibrium Price increases
38
This means that demand and supply curves only take
price
into account, rather than market-changing events
Ceteris Paribus
Supply
Equilibrium Price
Demand
39
A shift in the supply curve to the left means:
none of the above
quantity producers offer at every price will be less.
quantity producers offer at every price stays the same.
quantity producers offer at every price will be high.
40
Price changes shift the demand curve
False
True
41
When supply shifts to the left, what happens to market price and quantity?
They both go down
Price rises, quantity falls
Price falls, quantity rises
They both go up
42
A shift in the supply curve to the rights means:
the amount producers wish to sell at every price is the same
the amount producers wish to sell at every price increases
All of the above
the amount producers wish to sell at every price decreases
43
What Causes a shift in the Demand
Consumer Expectations
All of the above
Consumer Tastes & Advertising
income
44
A related complementary good becomes popular
Supply decreases, Equilibrium Price increases
Supply increases, Equilibrium Price decreases
Demand increases, Equilibrium Price increases
Demand decreases, Equilibrium Price decreases
45
The demand and supply schedule shows:
Demand prices and quantities, but not supply
Price that everyone would pay
Profit of loss of a business
The same information as a supply and demand graph
46
Supply and Demand
Move In opposite directions, supply goes up demand goes down
Move In the same direction, supply goes up demand goes up
None of these
Do not affect each other
47
Which of these factors may cause a shift in the demand curve?
All of the above
A change in trends and fashions
A change in the size of the population
Good or bad publicity
48
Substitute Goods
The person who watches your class when the teacher is gone
Goods whose demand are linked
When two players swap places
Goods that are interchangeable in value and price
49
What label do you put on the x axis of a supply/demand curve (the horizontal axis or left/right axis)
Supply
Demand
Quantity
Price
50
An endorsement from a popular celebrity
Demand decreases, Equilibrium Price decreases
Supply decreases, Equilibrium Price increases
Supply increases, Equilibrium Price decreases
Demand increases, Equilibrium Price increases
51
What happens when the supply is high and the demand is low?
The Prices tend to increase
Prices go crazy and have a party
The Prices tend to fall
You have the equilibrium
52
A producer hears a rumor that there will be a recession in the future
Demand decreases, Equilibrium Price decreases
Supply decreases, Equilibrium Price increases
Supply increases, Equilibrium Price decreases
Demand increases, Equilibrium Price increases
53
Price elasticity of supply is?
The responsiveness of supply to a change in price
How demand impacts price
The number of rubber bands produced
The responsiveness of demand to a change in price
54
A leftward shift of supply will:
decrease demand.
increase equilibrium quantity.
increase demand.
decrease equilibrium quantity.
55
A related substitute good becomes popular
Demand increases, Equilibrium Price increases
Supply decreases, Equilibrium Price increases
Demand decreases, Equilibrium Price decreases
Supply increases, Equilibrium Price decreases
56
When supply decreases the supply curve shifts
Right
Left
57
When supply is greater than demand, a _________ will result
shortage
equilibrium
surplus
balance
58
The products available for purchase are the:
Equilibrium Price
Demand
Supply
Ceteris Paribus
59
When the supply curve shifts right, what happens to market price and quantity?
Price falls, quantity rises
They both fall
Price rises, quantity falls
They both rise
60
What happens when the Supply is low and the demand is high?
The price decreases
The price increaces
