Econ Unit 3 Review

(a)   measures how changes in consumer income influences the demand for goods and services

(a)   are obstacles that make it more difficult for new firms to enter a market.

Which of the following could be considered complementary goods? (Select 2)

• lettuce

• bread

• salad dressing

• orange juice

According to the law of demand, the lower the price of a good...

• the less consumers will buy

• the more consumers will buy

• the larger the supply will be

• the lower the supply will be

In a supply and demand graph, the supply curve is...

• Horizontal

• Vertical

• Upward sloping

• Downward sloping

Where is the equilibrium in the graph shown?

• A

• B

• C

• D

• E

On the graph shown, what is the equilibrium quantity?

• 3,000

• 10,000

• 20,000

• 40,000

In a capitalist system, who determines what goods are produced, how goods are produced and the price of those goods?

• The President

• Private Citizens

• Wall Street

• Individual state governments

If the price of hamburgers were to rise sharply, which good would likely see an increase in demand?

• hot dogs

• cheese

• hamburger buns

• ketchup

When a firm produces more of a good or service than is demanded, what will result?

• A shortage

• A surplus

• The equilibrium price and quantity will change

• the supply curve will shift to the left