Microeconomics Review B

Suppose the government sets the price for chocolate bars at $2.00.

Which of the following statements best describes the effect of this price control?

• There would be a surplus of 400 chocolate bars.

• There would be a shortage of 200 chocolate bars.

• The price would remain at equilibrium.

Suppose the government sets the price for chocolate bars at $0.80.

Which of the following statements best describes the effect of this price control?

• There would be a surplus of 100 chocolate bars.

• There would be a shortage of 200 chocolate bars.

• The price would remain at equilibrium.

Jamie owns an auto repair shop. Which option will NOT change the supply curve?

• Consumers in the area decide they want their oil changed instead of having their tires rotated.

• Jamie has to pay her workers a higher wage.

• Technology advances for oil changes.

• The number of auto repair shops in her area

Organize these options into the right categories

Groups:

(a) substitutes

,

(b) complements

• pork and beef

• coffee and coffee makers

• bread and butter

• books and magazines

• ice cream and frozen yogurt

• cereal and milk

Unlimited liability is a disadvantage of a (a)  

• sole proprietorship
• partnership
• corporation
• monopoly

A corporation raises money by (a)   .

• selling stocks or bonds
• hoping for the best
• donating to charity

What is determined by where the supply and demand curve intersect?

• The Equilibrium Price

• The allocation method used to distribute resources

• The price set by the government

• The type of businesses that are allowed by the government

Match the following disadvantages to the type of business.

• Corporation

• No shared liability or costs

• Partnership

• Most regulations

• Sole Proprietorship

• Shared liability

Which of the following will change the supply of tires in the area?

• Consumer income increases

• Car owners decide they want larger tires

• The number of tire stores nearby

• The price of tires might go up

Match the following

• Law of Supply

• Consumers

• Law of Demand

• Producers

• Supply Curve

• Goes down

• Demand Curve

• Goes up