Intro to Econ - Unit 2 Quiz

When the cost of coffee increases, the demand for sugar decreases. These two goods are

• Substitutes

• Complements

• Unrelated

• Demand Elastic

Which of the following factors is likely to cause a decrease in the supply of a good?

• A decrease in production costs

• An increase in the number of suppliers

• An increase in the price of the good

• An increase in regulatory fees

When the price of a product increases, what is the typical effect on its demand?

• Demand for the product decreases

• Demand for substitute products decreases

• Demand for the product increases

• Demand for complementary products increases

What economic concept describes the tendency of consumers to opt for a cheaper alternative when the price of a preferred item rises?

• The substitution effect

• Price ceiling

• Market equilibrium

• Supply elasticity

The quantity demanded for a product typically falls when

• The product becomes more popular

• The price of the product rises

• The government provides subsidies

• The cost of production decreases

The Sherman Antitrust Act

• Outlawed monopolies that hindered trade
• Nationalized railroads
• Established the FDA
• Regulated the banking industry

When does a market experience a surplus?

• When the quantity supplied exceeds the quantity demanded

• When the quantity supplied matches the quantity demanded

• When the quantity supplied is less than the quantity demanded

• None of these options are correct

What is a potential consequence of reduced competition in a market?

• Improved customer service

• Lower barriers to entry

• Increased prices and influence

• Greater innovation

Which of the following is a government-imposed limit on how high a price can be charged for a product or service?

• Tariff

• Price Floor

• Rent Control

• Tax Credit

Joe will buy one pizza for $10, but is unwilling to buy a second pizza for the same price. This illustrates which of the following concepts?

• Law of demand
• Diminishing Marginal Utility
• Law of market demand curves
• Diminishing Demand Curve