Economics Chapter 5 Test

Front

Public Good

Back

Goods/Services provided by the government

Front

Price Ceiling

Back

Government regulation that establishes a maximum price for a particular good

Front

Price Floor

Back

Government regulation that establishes a minimum level for prices

Front

Positive Externality

Back

When someone who does not produce or consume a product benefits from its production.

Front

Market Failures

Back

Limitations of the price system

Front

Market Equilibrium

Back

Occurs when the quantity supplied and the quantity demanded for a product are equal at the same price

Front

Price System

Back

The system on which a free-enterprise economy primarily relies to answer the three economic questions

Front

At what price is market equilibrium for Chia Pets?

Back

$10

Front

At what price would there be a shortage for Chia Pets? Options: $30, $5, $12, $20

Back

$5

Front

Chia pets start coming to life and attacking their owners. This causes demand to shift at every price. Which way would the new Demand Curve shift?

Back

Left and down