AP Microeconomics Unit 2 - Test Prep

Front

The graph represents: Demand or Supply?

Back

Demand

Front

The Law of Supply states: as price increases, supply increases

Back

as prices increases, quantity supplied increases

Front

When quantity supplied and quantity demanded is equal

Back

equilibrium

Front

What causes the change in sales at the local grocery store when thousands of people leave a small town due to a factory closing down?

Back

Change in the number of buyers

Front

Goods that are bought and used together are

Back

complementary goods

Front

Which of the following is likely to increase the demand for peanut butter? Options: Fewer children in the population, News that insects have destroyed much of the peanut crop and that there will be less peanut butter on the shelves in three months., A big increase in the price of jelly., A report from the Surgeon General of the United States that eating peanut butter makes people nutty.

Back

News that insects have destroyed much of the peanut crop and that there will be less peanut butter on the shelves in three months.

Front

Which of the following will cause an increase in demand for snowboards? Options: More costly production methods, A decrease in the price of lift tickets at resorts in Colorado, A decrease in consumer income, A decrease in the population

Back

A decrease in the price of lift tickets at resorts in Colorado

Front

Which of the following would not shift the supply curve for iphones? Options: an increase in the price of iphones, a decrease in the number of sellers of iphone, an increase in the price of plastic, an input into the production of iphones, an improvement in the technology used to produce iphones

Back

an increase in the price of iphones

Front

An effective price floor must be set above equilibrium, resulting in:

Back

a surplus

Front

What is the result of the government implementing a price floor of $60?

Back

There would be a surplus of 100 because it is more expensive for consumers.