Econ Ch 4/5/6 test review

Which of these best describes prices in a market economy?

When the price of something increases, the quanity demanded of that object _________.

Which is a substitute for coffee?

Why is the Law of Demand called a "law"?

Which rationing method was instituted for gasoline in the mid-1970's?

What are the characteristics of demand?

Which item is a compliment to coffee?

What tends to force the price of an item downward?

Which of these events sparked the most extensive rationing in United State's history?

What product most likely has a demand that is inelastic?

The amount at which the demand for an object matches the supply of it

Which of these is most likely to create a shortage of an item?

When the price of something increases, the demand for that item ____.

T or F When the quantity supplied of an object is greater than the demand for that object, you have a shortage.

What is another term for doing business online or selling items on the internet?

Which of these tends to force the price of an item downward?

T or F Prices change most of the time due to supply and demand.

T or F A shortage tends to force the price of an item upward

_______________ is a method by which the government allocates goods and services without prices.

Price is defined as the ___________ value of an object.

Which of these is most likely to create a shortage of an item?

What are the causes of price change most of the time?

Highest legal price that can be charged for an item

The lowest legal price that can be charged for an item

What could be done if we didn't have prices?