Economics Unit 2

Front

Which of these names the only thing that can cause movement along a demand curve?
Options: Unit elastic demand, a substitution, a change in price, diminishing satisfaction

Back

a change in price

Front

Which term refers to a changing price that causes a proportional change in total revenue?

Back

unit elastic

Front

Prices for common vegetables tend to be elastic. Why?

Back

because other vegetables are available.

Front

Which of these tends to force the price of an item downward? a surplus of that item, a shortage of that item, attainment of an equilibrium price for that item, attainment of an equilibrium quantity of that item

Back

a surplus of that item

Front

Equilibrium is reached when what occurs?

Back

quantity supplied equals quantity demanded

Front

What do most economists believe is the most efficient way to allocate resources?

Back

competitive markets

Front

When the price of something increases, the quantity demanded____

Back

decreases

Front

Which of these best describes the influence of high prices on the behavior of producers?

Back

High prices are an incentive for producers to produce more.

Front

Which of these best describes prices in a market economy? Options: a signal for consumers to purchase less, a signal for producers to manufacture less, a set of compromises between buyers and sellers, a set of compromises between the government and citizens

Back

a set of compromises between buyers and sellers

Front

In a competitive market economy, prices are considered

Back

neutral