Economics: Unit 2 Test Review

Question 1

If the price rises from $1.50 to $2.50 what is the result?

Accepted Answer

too much pizza will be produced, we'll have a surplus of pizza

Question 2

If we consider pop a luxury and the price goes up, how will we respond as buyers?

Accepted Answer

we'll buy less, we'll look at substitute goods

Question 3

In this supply and demand schedule for pizza, what is the equilibrium price and quantity?

Accepted Answer

$1.50 and 200

Question 4

What do we call the money that government gives to industries to increase productivity?

Accepted Answer

subsidies

Question 5

The effect stating that as the price of a good increases we will seek out alternative goods is:

Accepted Answer

the substitute effect

Question 6

Equilibrium is defined as ____.

Accepted Answer

quantity demanded = quantity supplied, where the supply and demand curves intersect

Question 7

Which of the following is a determinant of demand?

Accepted Answer

consumer taste

Question 8

According to this demand curve, what would the quantity demanded be at a price of $2?

Accepted Answer

90

Question 9

What is NOT an example of a substitute good?

Accepted Answer

pencil and paper

Question 10

What is equilibrium?

Accepted Answer

the intersection of the supply and demand curves, when the quantity supplied equals the quantity demanded

Question 11

Which of the following will cause a shift in the demand curve?

Accepted Answer

population, complementary goods, personal tastes, income, substitute goods, and tastes

Question 12

The quantity demanded for ice cream has decreased. Why might this be so?

Accepted Answer

the price increased

Question 13

What will see the LEAST change in quantity demanded with an increase in price?

Accepted Answer

electricity

Question 14

Those factors that influence the demand of a good or service, they shift the demand curve:

Accepted Answer

determinants of demand

Question 15

A product that serves the same purpose as, and can replace another product, is called what?

Accepted Answer

a substitute

Question 16

What would happen if a disease killed a large portion of the nation's chicken?

Accepted Answer

supply curve shifts to the left

Question 17

A product that is interchangeable for another product of the same use is called:

Accepted Answer

a substitute

Question 18

What would we call shoes and socks, or hamburgers and fries?

Accepted Answer

complementary goods

Question 19

The price of tacos goes up, a restaurant makes more tacos each day. What is this an example of?

Accepted Answer

the law of supply

Question 20

How sensitive (strong or weak) the quantity demanded is to a change in price is called:

Accepted Answer

elasticity

Question 21

When New York City puts a price ceiling on their apartment rents, what is the result?

Accepted Answer

a shortage

Question 22

The quantity demanded of Nike shoes is 100 and the quantity supplied is 60, what is that?

Accepted Answer

a shortage

Question 23

What does an effective price ceiling always create?

Accepted Answer

surplus

Question 24

With the more of something we consume, what happens to the satisfaction we get from it?

Accepted Answer

it decreases, we get diminishing returns

Question 25

The branch of economics dealing with particular individuals, businesses, or products is called:

Accepted Answer

microeconomics

Economics: Unit 2 Test Review

Questions 25

Economics: Unit 2 Test Review

Questions 25