Name: Date: Period: Test: Supply and Demand

Transcription

1 Name: Date: Period: Test: Supply and Demand 1. What is the amount of a good or service that a consumer is willing and able to buy at various possible prices during a given period? d. quantity supplied. What is the amount of a good or service a person is willing and able to by at a specific price? d. quantity supplied. What is the theory that as price increases demand decreases and vice versa? d. diminishing marginal utility. What is the belief that at some point an additional unit of a product being consumed provides less satisfaction than the previous units? d. diminishing marginal utility. What is another term for the amount of money people have to spend on goods and services? a. credit b. disposable income c. conspicuous consumption d. purchasing power. What is the term for the group of factors that can shift a demand curve? a. demand determinants b. supply determinants c. demand shifters d. demandinators. Which of the following would be the best example of a change in tastes and preferences affecting the demand for Levis? a. Mr. Green sees Levis on sale, which makes him prefer them to other pants. b. Mr. Green gets a raise and decides to buy some new jeans. c. Mr. Green can t find any Dockers. d. Mr. Green thinks Bell Bottoms are out of style and want something more modern. e. Mr. Green can t find Lee jeans, so he decides on Levis.. Which of the following has to do with a shift the demand curve for a product because of an advertisement? a. market b. substitute c. technology d. income. Which of the following would relate to a change in demand based on Mr. Green getting a bonus in his salary? a. market b. substitute c. technology d. income. Which of the following would relate to a change in demand based Mr. Green deciding on turkey burgers for dinner because beef is too expensive? a. market b. substitute c. technology d. income. Which of the following terms describes a demand shift in peanut butter caused by a sale on Smuckers Jelly? a. market b. substitute c. technology d. income

2 . What is the term for the degree to which a change in a good s price affects the quantity demanded of that good? a. elasticity of demand b. marginal demand c. marginal utility d. elasticity of supply. How can you tell of a product has an elastic demand? a. The revenue drops with a minor price increase. b. The revenue increases with a minor price increase. c. The revenue drops with a price cut. d. The revenue increases with a price cut.. Which of the following products would most like have inelastic demand? a. a pint of vanilla ice cream b. an apple c. a cheese pizza d. a gallon of gasoline. How can you tell if a product has inelastic demand? a. The revenue drops with a minor price increase. b. The revenue increases with a minor price increase. c. The revenue drops with a price cut. d. The revenue increases with a price cut.. What is the quantity of a good and service that producers are willing to offer at various prices? d. quantity supplied. What is the amount of a good or service that producers are willing to provide at a specific price? d. quantity supplied. What theory states that producers are willing to provide more of a good at higher prices and less of a good at lower prices? d. diminishing marginal utility. What persuades producers to provide more of a good at higher prices? a. compassion b. profit motive c. an increasing supply d. a decreasing supply. What is the degree to which a change in price affects a change in supply? a. elasticity of demand b. marginal demand c. marginal utility d. elasticity of supply. Which of the following might lead to a product having inelastic demand? a. The product is not necessary, b. The product has several substitutes c. The product is unique.. Which determinant of supply would explain why Dominoes pizza would produces more pizza after finding a new company to provide its cheese at a dollar cheaper per pound?

3 . Which of the following would be considered a government tool that could be used to shift supply? a. taxes b. subsidies c. regulation. What could shift supply by providing new machinery or tools used in the production of goods?. Which of the following would increase supply when a new company begins manufacturing a product that other companies are making a profit on?. Which of the following would be an example of the price of related goods affecting supply of apples? a. A new machine shakes apples out of the tree. b. People can make more growing oranges, so they stop planting apple trees. c. The price of apple pesticides goes up.. Which of the following may lead to a product having an elastic demand? a. The product is not necessary. b. There are many substitutes for it. c. It costs a lot.. What is the difference in total product that is achieved as a new level of labor input is introduced? a. marginal output b. marginal cost c. marginal product d. marginal utility. Which of the following is the best phase of production according to the Law of Diminishing returns? a. increasing marginal returns b. decreasing marginal returns c. negative marginal return. Which of the following would explain a shift in the supply of See s Candy after February 14 th? a. technology b. producer expectations c. price of resources. What occurs when a new input of labor actually causes a decline in production? a. increased marginal return b. diminishing marginal return c. negative marginal return d. inverted marginally utility. Which of the following is an example of a fixed cost? a. salaries b. rent c. wages. Which of the following could lead to an inelastic supply of a product? a. It can be produced quickly. b. It can be produced inexpensively. c. It uses rare resources. Which of the following could lead to a elastic supply of a product? a. Production can be done quickly.

4 b. Production is costly. c. Production requires resources that are not widely available,. What is the additional cost of producing one more unit of output? a. marginal output b. marginal cost c. marginal product d. marginal utility. What acts as a communication device between consumers and producers? a. prices b. wall street c. iphones d. the internet. Which of the following, it is NOT one of the benefits of the price system? a. stability b. choice c. incentives d. flexibility. How does the price system offer incentives to consumers and producers? a. Consumers and producers can both make more profit. b. Consumers and producers can both benefit from low prices. c. Producers benefit from profits, and consumers benefit from savings. d. Consumers benefit from profits, and producers benefit from savings.. What benefit of the price system is created when producers compete and place more goods on the market? a. stability b. choice c. incentives d. flexibility. Which benefit to the price system would include the wise use of resources? a. stability b. choice c. incentives d. flexibility. Which benefit of the price system is related to its ability to adapt to change? a. stability b. choice c. incentives d. flexibility. What is created when quantity supplied and quantity demanded for a product are the same at the same price? d. a price ceiling. What is created when the quantity supplied exceeds (is more than) the quantity demanded? d. a price ceiling What is created when the quantity demanded exceeds (is more than) the quantity supplied? d. a price ceiling. Which of the following is a government regulation that establishes a maximum price for a particular good? a. a price wall b. equilibrium c. a price floor d. a price ceiling. What government regulation establishes a minimum level for prices? a. a price wall b. equilibrium c. a price floor d. a price ceiling

5 . What law sets the lowest amount an employer can pay a worker and is also an example of a price floor? a. the wage floor b. the wage ceiling c. the minimum wage d. the maximum wage. What is rationing? a. when the government decides how to distribute products b. when the government outlaws the sale of certain products c. when the government legalizes the sale of certain products d. when the government creates a price floor for certain products.. What is one side effect that can be created when government begins rationing? a. Everyone will get better deals on rationed products. b. Rationed products become more widely available. c. A black market for rationed goods may develop.. What could be considered a negative externality when buying cigarettes? a. the cost of matches b. health problems related to second hand smoke c. weight loss. Which of the following could be considered a public good? a. apples b. taxi service c. police protection. This major drawback of the price system could include wild price changes? a. instability b. a surplus c. shortage d. flexibility. Having one of these would tell a producer that they are charging to much. d. a price ceiling. In the example, what is the surplus created by the government s price floor?. In the example, what is the shortage created by the government price ceiling?. What is the new equilibrium price that might have been established by an add campaign?. In our example what is the price set to create a price floor?. In our example, what prices would result in a surplus? In our example, what prices would result in a shortage?. What is the equilibrium quantity and equilibrium price in the example?