Which of the following is NOT a function of price?

Price dictates the services rendered by the government

Which of the following will MOST LIKELY result in a decrease in a product's equilibrium?

Increase in supply, no change in demand

Which is NOT an example of rationing?

The government increasing excise taxes on cigarettes

Which statement below BEST describes a market clearing price?

The price in which quantity demanded meets quantity supplied

What does it mean if a demand curve shifts to the right?

Demand for the product has increased

What effect does a price ceiling have on the sale of a good/service?

A price ceiling will likely create a shortage

The market equilibrium price is the price at which...

The quantity demanded is the same as the quantity supplied

Which is an example of the Law of Demand?

Price of oranges decreases; Demand for oranges increase

What BEST explains why the price of a particular toy might FALL just before Christmas?

Sellers produced a surplus of the toy

What is MOST LIKELY to occur if a firm's inventory continues to grow over time?

The firm will lower the price of the goods

What is the BEST description of the black market?

The buying & selling of goods without government regulation

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Topic 3, Sections 7-9 (Market Clearing Price and Functions of Price)

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This Quiz reviews the basic concepts from JA's Chapter 5 on market clearing prices and functions of price

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Questions 16

Answers

1
The price of product X rose 15%. The most likely result of these events would be an increase..
in supplier output.
in consumer demand.
in natural resources.
in government intervention.
2
Which of the following is NOT a function of price?
Price provides a common language for consumers and producers
Price sends signals to buyers and sellers
Price dictates the services rendered by the government
Price rations and produces a market clearing price
3
Which of the following will MOST LIKELY result in a decrease in a product's equilibrium?
Equal decrease in both supply and demand
Equal increase in both supply and demand
Increase in demand, no change in supply
Increase in supply, no change in demand
4
When supply and demand for a product are equal, which of the following is most likely true?
The product's price will fall
All of the Above
The product's market clears
The product is no longer scarce
5
This occurs when consumers aren't willing to purchase as many goods as the producer is selling?
Surplus
Shortage
Rationing
Equilibrium
6
Which is NOT an example of rationing?
Apple raising prices for iPhone 7 to eliminate excess demand
The government increasing excise taxes on cigarettes
United States auctioning US Treasury Notes to investors
Pro football teams bidding for an athlete's services
7
Which statement below BEST describes a market clearing price?
The price at which a producer is no longer making a profit
The price in which quantity demanded meets quantity supplied
The cost of producing one more good/service
The total amount raised by a business by selling its goods
8
What does it mean if a demand curve shifts to the right?
Demand for the product has decreased
Supply for the product has increased
Demand for the product has increased
Supply for the product has decreased
9
During one month, the price of a product rose 35%. This most likely occurred because of an...
increase in producer outputs
increase in worker efficiency
increase in consumer demand
increase in short-term supply
10
What effect does a price ceiling have on the sale of a good/service?
A price ceiling will likely create a surplus
A price ceiling will likely create a shortage
A price ceiling will likely encourage a black market
A price ceiling will lower demand
11
What is another name for a market clearing price?
Quantity Supplied
Rationing
Equilibrium
Quantity Demanded
12
The market equilibrium price is the price at which...
Shortages and surpluses will have no effect on the market
Surpluses depress the number of goods supplied
The government will not intervene in the market
The quantity demanded is the same as the quantity supplied
13
Which is an example of the Law of Demand?
Price of oranges decreases; Demand for oranges increase
Price of oranges increase; Demand for oranges increase
Price for oranges increases; Producers produce more oranges
Price of oranges decreases; Producers produce less oranges
14
What BEST explains why the price of a particular toy might FALL just before Christmas?
Sellers produced a surplus of the toy
Buyers preferred the toy to others on the market
Sellers failed to produce enough toys to meet demand
Buyers caused a shortage of the toy
15
What is MOST LIKELY to occur if a firm's inventory continues to grow over time?
The firm will lower the price of the goods
The government will raise taxes on inventoried items
The firm will raise the price of the goods
Demand for the product will increase.
16
What is the BEST description of the black market?
Buying & Selling of goods with government control
Government-authorized market in which illegal goods are sold
The buying & selling of goods without government regulation
Type of buying & selling that takes place during rationing

Topic 3, Sections 7-9 (Market Clearing Price and Functions of Price) Flashcards | StudBud