Economics Unit 2 Exam (Ch4-6)

What effect does government subsidies have on supply/demand? (subsidies = government paying private businesses)

• supply shifts left

• supply shifts right

• demand shifts left

• demand shifts right

if a new study reveals that drinking Redbull causes cancer, what will happen to S/D and price?

• demand curve shifts right // prices increase

• demand curve shifts left // prices decrease

• supply curve shift left // prices increase

• supply curve shifts right // prices decrease

if elasticity is greater than 1, demand is ...

if elasticity is less than 1, demand is...

• elastic

  inelastic

• inelastic

  elastic

if elasticity is infinite, demand is...

if elasticity is 0, demand is...

• perfectly elastic

  perfectly inelastic

• perfectly inelastic

  perfectly elastic

if %change in QD is equal to the %change in price, then elasticity is

• perfectly elastic

• perfectly inelastic

• unit elastic

• relatively elastic

total revenue =

• price X cost

• marginal revenue X marginal cost

• price X quantity

• quantity demand - quantity supplied

you value eating the 5th slice of pizza less than eating the first slice of pizza

• diminishing marginal utility

• negative marginal utility

• profit maximizing quantity of output

• unit elasticity

which of the following would have inelastic demand?

• fast food

• penicillin

• going on vacation

• buying a car

which of the following would have elastic supply?

• football stadium seating

• nuclear power plants

• smartphones

• rare paintings

stage II of production

• increasing returns

• diminishing returns

• negative returns

• positive returns