Unit 2 HS Exam Review

Which of the following would cause the entire demand curve for a ‘normal’ good or service to decrease?

• A price decrease

• A price increase

• A in increase in household income

• A decrease in household income

An increase of the entire supply curve a given good would be caused by:

(Select all that apply)

• A decrease in the minimum wage

• An increase in the minimum wage

• Free energy/power for the firms factory

• Improved production technology

• A powerful ad campaign increasing sales

If consumers believe that the price of gas will increase in the near future, what is the effect on demand in the short run (right now)?

• Demand will increase

• Demand will decrease

• Demand will stay the same

• Demand change is indeterminate

If apple suppliers believe that the price of apples will increase in the future, what will happen to the supply of apples in the short run?

• Supply will increase

• Supply will decrease

• Supply will stay the same

• Supply change is indeterminant

A decrease in government subsidies for soy would cause the supply curve for soy to do which of the following?

• Supply would shift left

• Supply would shift right 

• Quantity Supplied would be indeterminant

• Quantity Supplied would not change

Which of the following is a club good? (select all that apply)

• Private Park

• TV Subscription

• Toll Road

• Gym Membership

Which of the following is a private good?

• Public Park

• Gym Membership

• Highway Interstate System

• All are Private Goods

• None are Private Goods

Which of the following is an example of a public good? (Select all that apply)

• Public Park

• Highway Interstate System

• Wireless Internet Subscription

• National Defense

• Gym Membership

If the government subsidizes a consumer to increase consumption of a good, producing a positive externality, what would be the resulting effect on price and quantity?

• Both rise

• Both fall

• Price rises and quantity falls

• Price falls and quantity rises

Sizeable positive and negative externalities are both reasons for government intervention.

• True

• False