Econ Unit 3 Quiz 2

This is the term for the price at which consumers will buy exactly the amount that the producers are willing to supply?

• Balance

• Equilibrium

• Stasis

• Surplus

This is the term for when consumer demand for a certain car is greater than the number of cars that can be produced?

• Surplus

• Elastic Demand

• Shortage

• Substitute

Which of the following problems most closely deals with Marginal Utility?

• A restaurant starts using margarine instead of butter because butter becomes more expensive

• The sales of milk & Oreo cookies increase at the same time

• When consumers start buying store brand foods instead of organics

• Deciding if you want to buy a second winter coat

What is likely to happen if a new method of production reduces the cost of producing furniture?

• The equilibrium price of furniture would go down

• The equilibrium price of furniture would go up

• The amount of furniture on the market would decrease

• Consumer demand would decline

Which of the following is true of public goods?

• They are nonexcludable and nonrival

• Their cost varies by income

• They are open to all (nonexcludable) but there is intense competition for production

• They tend to be more expensive than normal goods

Which of the following is an example of substitute goods?

• flashlights & batteries

• washing machine & drying machines

• Markers and crayons

• oil & cars

Which of the following is an example of an inferior good?

• smartphones

• peanut butter or jelly

• organic foods

• used textbooks