Unit 2 Test

The demand schedule shows the quantity demanded at all possible _________ that might prevail in the market at a given time.

• Prices

• Quantities

• Sizes

• Discounts

What do we call motivating influences that cause consumers to act?

• Wants

• Demands

• Needs

• Incentives

Which of the following is NOT a factor that impacts change in demand?

• Consumer Income

• Consumer Tastes

• Number of Consumers

• Production Possibilities

What is the only factor that changes the quantity demanded?

• Consumer

• Price

• Production Costs

• Supply

Which of the following is NOT a determinant of demand elasticity?

• Does the product meet consumer needs

• Can the purchase be delayed

• Does the purchase use a large portion of income

• Are adequate substitutes available

Which of the following products had an inelastic demand?

• Gasoline

• Insulin

• Butter

• Sports Cars

A ______ is a payment to an individual, business, or other group to encourage or protect a certain type of economic activity.

• Tariff

• Subsidy

• Substitute

Which of the following factors can cause a change in supply?

• Technology

• Productivity

• Government Regulations

• All of the Above

The supply curve is likely to be ______ for many products that can be made quickly without huge amounts of capital or skilled labor.

• Elastic

• Inelastic

• Unit Elastic

Factories closing are examples of ______ changes because the amount of capital used for production changes slowly.

• Short run

• Long run

• Middle run