Chapter 6 Economics Test

The monetary value of a product

• Price

• Rationing

• Biofuels

• Economic Model

System of allocating goods and services without prices

• Price

• Rationing

• Biofuels

• Economic Model

fuel made from wood, peat, municipal solid waste, straw, corn, tires, landfill gases, fish oils, and other waste

• Price

• Rationing

• Biofuels

• Economic Model

simplified version of a complex concept or behavior expressed in the form of a graph, figure, equation, or diagram

• Price

• Rationing

• Biofuels

• Economic Model

price when quantity supplied equals quantity demanded; price that clears the market

• Equilibrium Price

• Equilibrium Quantity

• Surplus

• Shortage

quantity of output supplied that is equal to the quantity demanded at the equilibrium price

• Equilibrium Price

• Equilibrium Quantity

• Surplus

• Shortage

situation where quantity supplied is greater than quantity demanded at a given price.

• Equilibrium Price

• Equilibrium Quantity

• Surplus

• Shortage

situation where quantity supplied is less than quantity demanded at a given price

• Equilibrium Price

• Equilibrium Quantity

• Surplus

• Shortage

Which rationing method was instituted for gasoline in the mid-1970s?

• Purchasing days determined by license plate numbers

• manufacturing of more fuel efficient automobiles

• administration of gas sales through the post offices

• distribution of ration vouchers

Which of these best describes prices in a market economy?

• A set of compromises between buyers and sellers

• a set of compromises between the government and citizens

• a signal for consumers to purchase less

• a signal for producers to manufacture less