Ch. 2 Test Review Economics Quiz

Study the demand curves below. If the price of a slice of pizza decreased from $4.00 to $2.00, how would that change the number of slices of pizza demanded each day by the market?

• The demand would increase by 2 slices per day.

• The demand would decrease by 2 slices per day.

• The demand would increase by 100 slices per day.

• The demand would decrease by 100 slices per day.

Which of the following goods would be considered a complement to flashlights in the context of a demand for goods?

• batteries

• candles

• floodlights

• binoculars

Suppose a new commercial development is built, leading to the opening of several new fast-food restaurants in a market. Which of the following is the likely result of such a development?

• The supply curve shifts to the left.

• The supply curve shifts to the right.

• The price of the good increases.

• The supply of the good fails.

This photo shows a factory with scrubbers that the government requires to clean power-plant emissions. This photo represents government activity that is likely to

• increase supply by increasing efficiency.

• decrease supply by increasing transportation cost.

• increase supply by increasing subsidy costs.

• decrease supply by increasing cost of production.

If you used this schedule to graph the demand for watermelons, where would the equilibrium point appear?

• at a price of $1.00 and a quantity supplied of 300

• at a price of $2.00 and a quantity supplied of 150

• at a price of $3.00 and a quantity supplied of 200

• at a price of $4.00 and a quantity supplied of 250

What would LIKELY happen to the market for oranges as a result of a severe frost in the South?

• The supply curve for oranges would shift to the left.

• Many new sellers would enter the market.

• Consumers would demand more of the fruit.

• The supply curve for oranges would shift to the right.

Which of the following BEST describes equilibrium?

• the point at which quantity supplied and demanded should remain no matter what

• a point on the demand curve that shows the highest market price for a good

• a point on the supply curve that shows the greatest possible output

• a point that moves continually in response to market changes in quantity supplied and demanded

In a market-based economy, consumers rely on prices to help them

• choose among similar products.

• decide which products suit their lifestyle.

• discover the latest high-technology gadgets.

• find clothing that fits them the best.

A huge, weeklong series of outdoor concerts is scheduled for early summer. Why will local stores LIKELY increase their supplies of consumer goods before the concert?

• in response to the falling equilibrium price

• in response to the expected surplus

• in response to the profit incentive

• in response to the stock shock

What happens when a demand curve shifts to the right?

• a. a decrease in quantity supplied

• b. an increase in quantity demanded

• c. a decrease in quantity demanded

• d. an increase in quantity supplied