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Economics: Chapter 6 Price Interactions Flashcards | StudBud
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Economics: Chapter 6 Price Interactions
Economics: Chapter 6 Price Interactions
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Questions
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Answers
1
What can cause the equilibrium price to move?
None of these
Nothing because the price is a set price for everyday
Factors that would move the supply & demand curves
Equilibrium price only exists at specific stable point
2
Price Ceiling is what?
Minimum wage
None of these
Minimum price that must be paid for a good or service
Max price that can be legally charged for a good or service
3
How would you best describe "Profit Incentive"?
Financial rewards that motivate producers or consumers
Profit that business owners make only
Has something to do with this review
4
What might lead to an increase in Demand?
Certain "fads"
Higher prices
When the price of a product is high
None of these
5
What does it mean to be in a disequilibrium state?
the market is stable
When everything in the mark is perfect
When quantity supplied isn't equal to quantity demand
None of these
6
Prices are flexible, they can be increased to solve problems & decreased to solve problems
True
False
7
Supply curve can move left or right because of what?
New government taxes and subsidies
Advances in technology
All of these answers
Changes in prices & labor used to produce good
8
If a company experiences a shortage what will they do to reach equilibrium?
They wouldn't know what to do
Increase prices because demand will go down
They won't do anything the market will fix itself
decrease prices and the demand will go up
9
During World War II how were families contributing to the war effort?
Store owners would raise prices
Through rationing their raw materials
Just living normal everyday lives
They would improve their home security to prevent attacks
10
One contribution of decrease in supply could be due to what?
Price of labor increase
All of these answers
Price of raw materials goes up
New tax own manufacturers
11
How would you describe a shortage?
None of these
When there is too much quantity supplied
Excess supply
When there is too much demand and not enough quantity supply
12
How would you describe a surplus?
When there is a higher supply than the demand
When there is more demand than supply
Both of these situations
None of these situations
13
Decrease in demand results in what?
Shortages
Surpluses
14
Define rationing
Allocating scarce goods and services
When you share items but with a cost
Keeping everything you got for yourself and no one else
All of these answers
15
When the market is in an equilibrium state, the market is considered to be stable
False
True
16
The Last Streak Buster
It Could Be This One
I Can Not Remember If It Is This One
It Is Definitly This One
It May Be This One
17
What is Price Floor?
Rent control
Minimum price, that must be paid for a good or service
All of these
Max price that can be legally charged for a good or service
18
Define what a "Fad" is
Has something to do with sports
Something that is not popular
None of these answers
Something that is popular for a short amount of time
19
Define search costs
Financial benefits
The cost of searching things on the internet
None of these
Financial & costs consumers pay looking for a good
20
What is the gap above equilibrium point between the supply and demand curve called
Excess demand
Excess money
Excess equilibrium
Excess supply
21
During World War II the United States went through the biggest period of what?
Black Market sales
None of these
Fads
Rationing
22
When the supply and demand curve intersect, what is that point called?
Excess Demand
Disequilibrium
Equilibrium
None of these
23
Increase in demand results in what?
Surpluses
Shortages
24
With increases in technology some goods cost less to be produced. What goods experienced this?
All of these products
Digital cameras
Televisions
Phones
25
What is an example of Price Ceiling?
Minimum wage
Rent control
None of these
26
Increase in technology like, improvements, or making products easier will move supply curve to:
won't move the curve
the left
it'll move off the graph
the right
27
What is an example of price floor?
Minimum wage
None of these
Rent control
28
Equilibrium prices are not flexible and stay in the same place everyday
True
False
29
What is the gap below the equilibrium point between the supply and demand curve called?
Excess supply
None of these
Excess demand
Excess equilibrium
