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Unit Two Review - Ch. 4-6 Flashcards | StudBud
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Unit Two Review - Ch. 4-6
Unit Two Review - Ch. 4-6
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This is the quick review for Unit 2 Ch. 4-6
Flashcards
20 cards
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Practice quiz
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Host live
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Questions
20
Answers
1
What would happen if Demand stayed the same and Supply increased?
P decrease, Q decrease
P increase, Q increase
P increase, Q decrease
P decrease, Q increase
2
The legal maximum price set by the government is know as...?
Price Ceiling
Suplus Price
Price Floor
Price War
3
If demand is constant, a decrease in supply will result in...
P decrease, Q decrease
P increase, Q decrease
P decrease, Q increase
P increase, Q increase
4
Which of the following will NOT change (or shift) the demand for a product?
a change in the price of a substitute
a change in the price of the product
a change in income
a change in expectations about the future price of a good
5
A price floor results in which of the following?
a surplus
a shortage
equilibrium
a shift of the curve
6
Subsidies are opposite of taxes and cause which shift?
Demand to shift to the right
Demand to shift to the left
Supply to shift to the right
Supply to shift to the left
7
With complementary goods, which of the following occurs?
The demand for good A moves opposite as price for good B
Demand for good A moves in same direction as price of good B
Demand for one good does not affect the price of the other
Supply of one good moves opposite as price of other good
8
Minimum wage laws are an example of a price _________ and result in a __________ of labor.
ceiling; shortage
ceiling; shortage
floor; shortage
floor; surplus
9
When income decreases, demand for this type of good increases.
Normal
Inferior
Polar
Neutral
10
What is the result on P and Q in the market for
cars
if unemployment across U.S. increases?
P increase Q increase
P decrease Q decrease
P increase Q decrease
P decrease Q increase
11
The Law of Demand is shown on a graph to have what mathematical relationship?
Positive
Direct
Inverse
Upward Sloping
12
All markets will move toward...
equality
scarcity
neutrality
equilibrium
13
Which of the following is NOT a determinant of Demand?
tastes and preferences
income
price of substitutes
cost of production
14
What does the Supply Curve look like in a situation where no more of a product can be produced?
It is vertical
It is downward sloping
It is horizontal
It is inverted
15
What effect on P and Q in the market for almonds would result from a drought?
P increase, Q decrease
P decrease, Q increase
P increase, Q increase
P decrease, Q decrease
16
What is the only factor that DOES NOT change demand or supply?
future events
price
income
weather events
17
If all else remains the same, a decrease in the demand for a good...
will cause a shortage
will decrease the price
will increase sales
will increase the price
18
Which of the following can cause a supply curve to shift?
number of sellers
weather
all of the above
future price expectations
19
The prices consumers pay are determined by
advertising
chance
producers
markets
20
A normal good
will be in higher demand if a person's income decreases
will be in higher demand if a person's income increases
will be purchased, regardless of changes in income
has not been damaged
