ECON Unit 3 Warm-up v2

Which way/direction does the demand curve go?

• Down and to the right

• Straight up

• Up and to the right

• Straight down

According the Law of Demand... (Select all that apply)

• When prices go up, demand goes up
• When prices go up, demand goes down
• When prices go down, demand goes down
• When prices go down, demand goes up

When consumers purchase ___________ of the same product at the same price, the demand curve shifts to the RIGHT.

• Less

• More

• The same

• None of these

If a consumer expects the price of a good to decrease in the near future, they will do what?

• buy it anyways at the current price

• not buy it at all

• wait for a lower price

• choose a substitute good

If you buy the same amount or a little less of a good after a price increase your demand is ____________ and if you buy a lot less your demand is _____________ . (Fill in the blanks)

• Elastic, Elastic

• Inelastic, Elastic

• Inelastic, Inelastic

• Elastic, Inelastic

According to the Law of Supply... (Select all that apply)

• When prices go up, supply goes down
• When prices go down, supply goes down
• When prices go up, supply goes up
• When prices go down, supply goes up

In this graph, which line represents the supply curve? (Red or Blue)

• Red

• Blue

Which direction does the supply curve move (what is the key feature)?

• Down and to the right

• Up and to the right

• A straight vertical line up

• A straight horizontal line across

Fixed Costs + _______________ = Total Costs

• Taxes

• Variable Costs

• Marginal Cost

• Average Cost

What is the marginal product of labor?

• The change in output from hiring one more worker.

• The level of production in which the marginal product of labor increases as the number of workers increases

• When the addition of a unit of labor actually reduces total output

• The additional cost of producing one additional unit