Econ in Class Final Review

When a war breaks out in the Middle East and the global supply of oil decreases, the price of gasoline in the United States

• goes up.
• goes down.
• stays the same.
• encourages people to buy cars that consume a great deal of gas.

Supply and demand ultimately determine the ______ equilibrium and _______ equilibrium of a product.

• price/quantity
• imports/exports
• supply/demand
• market/command

An increase in labor costs (minimum wage goes from $7.25 to $100 per hour) would have a negative effect on the business. Which of the following graphs show an increase in labor costs leading to a decrease in the ability to supply?

• Graph A
• Graph B
• Graph C
• Graph D

Based on the law of supply, when consumers are willing to pay high prices for products, the quantity supplied

• increases.
• decreases.
• diminishes.
• is unchanged.

A table that shows the relationship between the price of a good and how much a supplier is willing to sell is the

• supply schedule
• demand curve
• demand schedule
• market schedule

Unlike the demand curve, the supply curve slopes

• upward.
• downward.
• there is no slope.
• sideways

If the price of the good is too low, then the supplier will end up with a

• shortage
• surplus

Based on the graph, the equilibrium price is

• 5
• 10
• 15
• 20
• 25

Based on the graph, if the price was set at $5, there would be a shortage of

• 60
• 10
• 20
• 30
• 40

The Mona Lisa would be considered to have inelastic supply because

• there is only one in the world and there is no way to produce more, no matter how much someone is willing to pay
• she is just not that pretty of a woman
• reprints are just as valuable as the original, making it easy to produce more
• it has very little demand for the product