Micro Quiz RY

This happens when  quantity demanded exceeds (is greater than) quantity supplied. 

• Surplus
• Shortage
• Market Clearing Price
• Equilibrium Price

This happens when quantity supplied exceeds (is greater than) quantity demanded. 

• Surplus
• Shortage
• Equilibrium
• Market Clearing Price

When the government sets a price floor on earned income, it is called which of the following?

• market equilibrium rate
• base-level wage
• minimum wage
• employment guarantee

SSEMI2 a  Which of the following best describes the Law of Demand?

• As price goes down, demand goes down. (and vice versa).
• As price goes down, demand goes up (and vice versa).
• As demand goes down, supply goes up.
• As demand goes up, price becomes elastic.

According to the law of demand, if there is a price increase in Chick Fil A sandwiches, then the quantity demanded of Chick Fil A sandwiches will _________

• Increase
• Decrease
• Stay the same
• none of the above

The circular flow model of a market economy shows

• how profits are made

• what inputs are required for what outputs

• how many firms can support the needs of how many households

• the interactions between households and firms in a market economy

What do households provice to the resource market?

• land, labor, capital 
• money
• people
• income

Why do firms need to purchase the productive resources in the factor market?

• To produce labor
• To produce goods and services
• To increase demand
• None of the above

The DEMAND CURVE IS ___________ sloping. 
The SUPPLY CURVE IS _______ sloping

• Upward, downward
• Downward, upward
• constant, non constant
• straight, low

SSEMI2 a  Econonics teachers at ARC love to stuff their faces with donuts, for sure, but as the price of donuts decreases, the face stuffing increases with great quantity.  This illustrates the:

• Law of supply
• Law of scarcity
• Law of demand
• Law of donut eating