ECONOMICS FINAL EXAM REVIEW

Front

What will happen in the rice market if buyers are expecting higher prices in the near future?

Back

The demand for rice will increase.

Front

Refer to Graph 4-1. The movement from point A to point B on the graph shows

Back

an increase in quantity demanded.

Front

What does the Latin phrase Ceteris paribus literally mean?

Back

all things being held constant.

Front

What best refers to the situation when the price of a good or service changes?

Back

there is a movement along a stable demand curve.

Front

Other things equal, when the price of a good rises, the quantity supplied of the good also rises. What best refers to this situation?

Back

The law of supply.

Front

Refer to Graph 4-4. On the graph, what could most likely cause the movement from S to S1? A decrease in the price of the good. An increase in income. An improvement in technology. An increase in input prices.

Back

An improvement in technology.

Front

Refer to Graph 4-5. According to the graph, what are the equilibrium price and quantity?

Back

$5, 40.

Front

According to Graph 4-5, what occurs at a price of $7?

Back

there would be a surplus of 40 units.

Front

Refer to Table 4-2. In the table shown, what would be the result if the price were $8?

Back

a surplus of 60 units would exist and price would tend to fall.

Front

The willingness and ability of a producer to make a product is referred to as

Back

supply