Economics via Schools PLP - Unit 3 CFU

Which answer is NOT a factor that can change demand?

• income

• buyers and price

• expectations

• tastes and preferences

• natural and man-made disasters

A business anticipating a cold winter by manufacturing snow shovels in July is an example of _____ affecting a change in supply.

• expectations

• commission

• profit

• income

Which shift does the chart show?

• an increase in supply

• a decrease in supply

• an increase in demand

• a decrease in demand

Which of these is the equilibrium price for T-shirts?

• $20.00

• $12.50

• $17.50

• $15.00

• $22.50

A change of price of one good that affects demand for a similar good is the _____ effect.

• escalation

• progression

• substitution

• inflation

When demand is greater than supply, a market experiences a(n) ______.

• shortage

• equilibrium

• surplus

• none of these

A maximum price for a good or service is a price _____ set by the government.

• projection

• floor

• ceiling

• revision

Which of these is the equilibrium quantity for T-shirts?

• 8

• 4

• 6

• 5

• 2

Luther owns a tutoring business. In 2017, he decides he needs an economic profit of $70,000 in order to open a new location in 2018. Consider the following information about his business during 2017:

He spent $5,000 on new computer software for mathematics.

He spent $15,000 in wages.

He made $80,000 in total revenue.

He spent $3,000 paying bills.

He paid $2,000 interest on a loan.

Can Luther open a new location for his tutoring business?

• yes

• no

A(n) ______ cost, such as labor or machinery, is easily identifiable.

• regulatory

• production

• explicit

• implicit