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WorksheetsECON EXAM 2
Total questions: 177
Worksheet time: 1hrs 29mins
Name
Class
Date
1.
How do markets work ?
a)
A higher price and a higher quantity.
b)
an economic view of the world supply and demand
c)
disequilibrium.
d)
along a supply curve as price changes
2.
market economy
a)
makes the decisons about what and how to produce as well as who gets the stuff through the interaction of buyers and sellers
b)
equilibrium wage rate
c)
can any of the previous four reasons, if expectations are very negative the demand will shift
d)
there will always be an inverse ( indirect ) or negative relationships between price and quantity demanded
3.
how is price determined in the product market ?
a)
A price is determined in the product market through the interaction of the supply decisions of competing businesses and the demand decisions of competing households
b)
pay not to produce ( shift supply curve to left)
c)
X marks the spot
d)
no high school education/dropout, 25 and under, works in retail, food services or daycare
4.
how is price determined in the resource market ?
a)
government buys up surplus
b)
When the price of a good or service increases, the quantity supplied of that good or service will increase.
c)
along a supply curve as price changes
d)
A price is determined in the resource market through the interaction of the supply decisions of competing households and the demand decisions of competing businesses
5.
demand is
a)
disrupt equilibrium to find another one
b)
As price increases, quantity supplied increases.
c)
Surplus, Surplus Disposal or Control Required, Distortion of Market Signals/Misallocation of Resources
d)
product market and consumers
6.
demand schedule
a)
Above, surplus
b)
a schedule that shows the quantities of a good consumers are willing and able to purchase at various prices out of a set of all possible prices over a specified period of time
c)
product market and consumers
d)
When the market price is above or below the equilibrium price.
7.
what happens to quantity demanded as price goes down
a)
As price increases, quantity decreases.
b)
quantity demanded goes up
c)
price goes up , demand and quantity shift to right
d)
A higher price and a higher quantity.
8.
what happens to quantity demanded as price goes up
a)
Few buyers = decrease in demand
b)
good you buy more of as income falls like used cars, generic products , discount clothing
c)
quantity demanded goes down
d)
an inverse relationship between price and quantity demanded
9.
the law of demand
a)
As price increases, quantity decreases.
b)
it must be either supply or demand changing ( or both in the real world)
c)
there will always be an inverse ( indirect ) or negative relationships between price and quantity demanded
d)
landlords know lines exist and try to extort potential clients
10.
difference between a change in quantity and a change in demand ?
a)
a change in quantity demanded reflects a move along a demand curve as the price changes
b)
demand for labor. pushes equilibrium wages up
c)
supply decreases
d)
As price increases, quantity demanded decreases.
11.
factors of production
a)
10 times in the last 10 years
b)
Increase their production of gasoline.
c)
land, labor, captial and entreprenuerial ability
d)
cause the demand curve to shift to the right.
12.
Cetris Paribus
a)
there will always be an inverse ( indirect ) or negative relationships between price and quantity demanded
b)
a Latin phrase that means "all other things held constant"
c)
determined by superior or inferior goods
d)
quantity supplied exceeds quantity demanded. downward pressure on prices
13.
a change or shift in demand
a)
the quantity demanded
b)
quantity supplied exceeds quantity demanded. downward pressure on prices
c)
Quantity is on the x-axis, price is on the y-axis.
d)
A change, also called a shift, in demand, is a movement of the entire curve
14.
rightward shift
a)
disequilibrium.
b)
increase in demand/supply
c)
buy different varied goods and services ( technology, shoes, clothes, cars)
d)
a price once achieved will tend to be sustained - no tendency to change
15.
leftward shift
a)
quantity supplied goes up
b)
a shift in the demand curve is caused by a change in one or more of the non-price determinants of demand
c)
decrease in demand/supply
d)
Shortage. The increase in demand will lead to the quantity demanded being greater than the quantity supplied. Competition among buyers will lead to rising prices for chocolate bars. As the price rises, quantity supplied will increase and quantity demanded will decrease until the shortage disappears.
16.
less and more will demanded at
a)
pay not to produce ( shift supply curve to left)
b)
tax revenues exceed government expenditures
c)
all possible prices
d)
can any of the previous four reasons, if expectations are very negative the demand will shift
17.
what causes a change or shift in the demand curve
a)
tax revenues exceed government expenditures
b)
a shift in the demand curve is caused by a change in one or more of the non-price determinants of demand
c)
A higher price and a higher quantity.
d)
Above, surplus
18.
Non-price determinants of demand
a)
no high school education/dropout, 25 and under, works in retail, food services or daycare
b)
Government expenditures exceed tax revenues
c)
consumers taste and preferences, income, prices of related goods, numbers of buyers in the market, expectations
d)
more buyers = increase in demand
19.
consumers taste and preferences
a)
influenced by family, friends, media, age, culture, religion, demographics, yourself
b)
supply increases
c)
statutory debt limit agreement in june 2023
d)
consumers taste and preferences, income, prices of related goods, numbers of buyers in the market, expectations
20.
income
a)
A price is determined in the resource market through the interaction of the supply decisions of competing households and the demand decisions of competing businesses
b)
cause the demand curve to shift to the right.
c)
determined by superior or inferior goods
d)
landlords know lines exist and try to extort potential clients
21.
superior goods
a)
quantity supplied > quantity demanded
b)
goods you buys if income rises like new cars, jewelry, trips/vacation, concert tickets
c)
Producers enter -- supply increases
d)
good you buy more of as income falls like used cars, generic products , discount clothing
22.
inferior goods
a)
legal price set above equilibrium. political reasons. cant fall
b)
good you buy more of as income falls like used cars, generic products , discount clothing
c)
shortages or surpluses
d)
A shortage of that good or service
23.
income rises
a)
A situation in which the quantity demanded is greater than the quantity supplied.
b)
price goes down , demand and quantity shift to left
c)
The equilibrium price will increase and equilibrium quantity will decrease.
d)
buy more
24.
income falls
a)
deals with or reflects production options. producers not consumers
b)
depends on how much federal government spends and collect in taxes
c)
shortages or surpluses
d)
buy less
25.
if income rises what happens to good x
a)
A change, also called a shift, in demand, is a movement of the entire curve
b)
product market and consumers
c)
quantity supplied goes up
d)
it depends on whether its superior or inferior goods
26.
prices of related goods
a)
buy different varied goods and services ( technology, shoes, clothes, cars)
b)
A price is determined in the resource market through the interaction of the supply decisions of competing households and the demand decisions of competing businesses
c)
What should the government pay for?
d)
a supply schedule shows the quantities of a good the producers are willing and able to produce at various prices out of a set of all possible prices over a specified period of time
27.
complementary goods
a)
goods you buys if income rises like new cars, jewelry, trips/vacation, concert tickets
b)
buy and use together ( phone/chargers, chips/dips, shoes/socks)
c)
good you buy more of as income falls like used cars, generic products , discount clothing
d)
makes the decisons about what and how to produce as well as who gets the stuff through the interaction of buyers and sellers
28.
two goods are complements if an increase in the price of a good causes a
a)
decrease in the demand for the other good
b)
True
c)
Few buyers = decrease in demand
d)
generic brands vs name brands
29.
substitute goods
a)
increase in demand OR decrease in supply
b)
an inverse relationship between price and quantity demanded
c)
one or the other but not both
d)
The supply of candy bars will decrease.
30.
two goods are substitutes if an increase in the price of a good causes an
a)
landlords know lines exist and try to extort potential clients
b)
it depends on whether its superior or inferior goods
c)
Shortage. The increase in demand will lead to the quantity demanded being greater than the quantity supplied. Competition among buyers will lead to rising prices for chocolate bars. As the price rises, quantity supplied will increase and quantity demanded will decrease until the shortage disappears.
d)
increase in the demand for the other
31.
substitute goods example
a)
government expenditures = tax revenues
b)
determined by superior or inferior goods
c)
generic brands vs name brands
d)
False
32.
number of buyers in the market
a)
Surplus. The decrease in demand will lead to the quantity supplied being greater than the quantity demanded. Competition among sellers will lead to falling prices for chocolate bars. As the price decreases, quantity supplied will decrease and quantity demanded will increase until the surplus disappears.
b)
any type of government mandated minimum wage is a price support set ABOVE the equilibrium wage. it causes employment for unskilled workers
c)
more buyers = increase in demand
d)
The quantity at which quantity supplied and quantity demanded are equal. The point at which the supply and demand curves intersect.
33.
Few buyers = decrease in demand
a)
the quantity the sellers are willing to sell
b)
The price at which quantity supplied and quantity demanded are equal. The point at which the supply and demand curves intersect.
c)
Above, surplus
d)
Few buyers = decrease in demand
34.
expectations
a)
shortages, black markets, distortion of market signals and misallocations of resources
b)
can any of the previous four reasons, if expectations are very negative the demand will shift
c)
through the interaction of supply and demand
d)
producers
35.
supply schedule
a)
Cost of supplies needed to produce a good. As costs increase, supply decreases. Decrease costs and supply increases.
b)
quantity supplied goes down
c)
The intersection point when you combine the supply and demand curve.
d)
a supply schedule shows the quantities of a good the producers are willing and able to produce at various prices out of a set of all possible prices over a specified period of time
36.
what happens to quantity supplied as price goes down ?
a)
True
b)
quantity demanded goes down
c)
the quantity demanded
d)
quantity supplied goes down
37.
what happens to quantity supplied as price goes up ?
a)
As price of a good or service increases, the quantity demanded of that good or service decreases.
b)
buy more
c)
price goes up, demand and quantity shift to left
d)
quantity supplied goes up
38.
law of supply
a)
Consumer sovereignty.
b)
buy and use together ( phone/chargers, chips/dips, shoes/socks)
c)
False
d)
there will always be a direct or positive relationship between price and quantity supplied
39.
a change in quantity supplied reflects a move
a)
A price is determined in the product market through the interaction of the supply decisions of competing businesses and the demand decisions of competing households
b)
increase in supply OR decrease in demand
c)
along a supply curve as price changes
d)
a schedule that shows the quantities of a good consumers are willing and able to purchase at various prices out of a set of all possible prices over a specified period of time
40.
a change (shift) in supply is a
a)
the quantity the sellers are willing to sell
b)
Producers enter -- supply increases
c)
increase in demand OR decrease in supply
d)
movement of the entire curve
41.
rightward shift of the supply curve
a)
price floors
b)
$ 34 trillion
c)
increase in supply
d)
The equilibrium price and quantity will both decrease.
42.
leftward shift of the supply curve
a)
a shift in the demand curve is caused by a change in one or more of the non-price determinants of demand
b)
more buyers = increase in demand
c)
buy and use together ( phone/chargers, chips/dips, shoes/socks)
d)
decrease in supply
43.
non-price determinants of supply
a)
increase in demand/supply
b)
quantity supplied goes up
c)
10 times in the last 10 years
d)
Cost of inputs, technology, number of producers in the market, prices of related goods, government policies, expectations
44.
cost of inputs
a)
Cost of supplies needed to produce a good. As costs increase, supply decreases. Decrease costs and supply increases.
b)
subsides can be a special tax treatment of a direct payment to encourage ( or discourage ) production
c)
landlords know lines exist and try to extort potential clients
d)
government expenditures = tax revenues
45.
technology
a)
subsides can be a special tax treatment of a direct payment to encourage ( or discourage ) production
b)
government expenditures = tax revenues
c)
What should the government pay for?
d)
applied science. technology increases supply
46.
number of producers in market
a)
a shift in the demand curve is caused by a change in one or more of the non-price determinants of demand
b)
Producers leave -- Supply decreases
c)
demand for labor. pushes equilibrium wages up
d)
Cost of inputs, technology, number of producers in the market, prices of related goods, government policies, expectations
47.
Producers enter -- supply increases
a)
A shortage of that good or service
b)
increase in the demand for the other
c)
the quantity demanded
d)
Producers enter -- supply increases
48.
price of related goods
a)
federal, state, local
b)
an equilibrium quantity and an equilibrium price
c)
Cause the supply curve for shoes to shift to the right.
d)
deals with or reflects production options. producers not consumers
49.
government policies
a)
price goes up, demand and quantity shift to left
b)
along a supply curve as price changes
c)
Consumer sovereignty.
d)
taxes and subsidies ( taxes are a cost of production)
50.
If tax increases...
a)
one or the other but not both
b)
price goes up , demand and quantity shift to right
c)
supply decreases
d)
Higher. The increase in demand will result in a higher equilibrium price.
51.
If tax decreases,
a)
decrease in the demand for the other good
b)
A change, also called a shift, in demand, is a movement of the entire curve
c)
supply increases
d)
10 times in the last 10 years
52.
subsides
a)
calculated yearly
b)
a price once achieved will tend to be sustained - no tendency to change
c)
a schedule that shows the quantities of a good consumers are willing and able to purchase at various prices out of a set of all possible prices over a specified period of time
d)
subsides can be a special tax treatment of a direct payment to encourage ( or discourage ) production
53.
expectations
a)
president and congress cant agree on a budget(fiscal policy)
b)
all possible prices
c)
any of the previous 5 non-price determinants of supply. expect taxes to change, and expect subsides
d)
decrease in the demand for the other good
54.
how is price determined ?
a)
Producers enter -- supply increases
b)
shortage.
c)
more buyers = increase in demand
d)
through the interaction of supply and demand
55.
How is the equilibrium price determined?
a)
a price once achieved will tend to be sustained - no tendency to change
b)
a shortage and a surplus.
c)
Few buyers = decrease in demand
d)
buy more
56.
equilibrium price
a)
hundreds and thousands of smaller IOUs
b)
When the price of a good or service increases, the quantity supplied of that good or service will increase.
c)
quantity supplied = quantity demanded
d)
Decrease their consumption of gasoline.
57.
demand schedule =
a)
supply increases
b)
quantity supplied goes up
c)
consumers
d)
When the market price is above or below the equilibrium price.
58.
supply schedule =
a)
producers
b)
the quantity demanded
c)
every spending and tax bill has to be fully passed by president and congress
d)
the borrowing authority of federal government
59.
equilibrium / quantity
a)
calculated yearly
b)
it must be either supply or demand changing ( or both in the real world)
c)
every spending and tax bill has to be fully passed by president and congress
d)
X marks the spot
60.
Equilibrium has no
a)
a schedule that shows the quantities of a good consumers are willing and able to purchase at various prices out of a set of all possible prices over a specified period of time
b)
the debt ceilings to be theirs
c)
shortages or surpluses
d)
a shift in the demand curve is caused by a change in one or more of the non-price determinants of demand
61.
What if price is above equilibrium?
a)
surplus
b)
The price at which quantity supplied and quantity demanded are equal. The point at which the supply and demand curves intersect.
c)
the borrowing authority of federal government
d)
demand side
62.
surplus
a)
supply side
b)
As price increases, quantity demanded decreases.
c)
Shortage. The increase in demand will lead to the quantity demanded being greater than the quantity supplied. Competition among buyers will lead to rising prices for chocolate bars. As the price rises, quantity supplied will increase and quantity demanded will decrease until the shortage disappears.
d)
quantity supplied exceeds quantity demanded. downward pressure on prices
63.
What if price falls below equilibrium?
a)
shortage.
b)
increase in supply
c)
shortages
d)
Shortage. The increase in demand will lead to the quantity demanded being greater than the quantity supplied. Competition among buyers will lead to rising prices for chocolate bars. As the price rises, quantity supplied will increase and quantity demanded will decrease until the shortage disappears.
64.
shortage
a)
makes the decisons about what and how to produce as well as who gets the stuff through the interaction of buyers and sellers
b)
quantity demanded exceeds quantity supplied. upward pressure on prices
c)
cause the demand curve to shift to the right.
d)
Shortage
65.
static equilibrium
a)
disrupt equilibrium to find another one
b)
disequilibrium.
c)
determined by superior or inferior goods
d)
False
66.
if equilibrium price is changing
a)
buy and use together ( phone/chargers, chips/dips, shoes/socks)
b)
Quantity is on the x-axis, price is on the y-axis.
c)
it must be either supply or demand changing ( or both in the real world)
d)
more buyers = increase in demand
67.
what could cause equilibrium price to go up ?
a)
A situation in which the quantity supplied is greater than the quantity demanded.
b)
minimum wage
c)
shortages
d)
increase in demand OR decrease in supply
68.
what could cause equilibrium price to go down ?
a)
no markets do have a natural tendency to settle at the equilibrium price but the price may bounce around a bit in the process
b)
Producers leave -- Supply decreases
c)
increase in supply OR decrease in demand
d)
buy different varied goods and services ( technology, shoes, clothes, cars)
69.
increase in demand graph
a)
goods you buys if income rises like new cars, jewelry, trips/vacation, concert tickets
b)
price goes up , demand and quantity shift to right
c)
10 times in the last 10 years
d)
any type of government mandated minimum wage is a price support set ABOVE the equilibrium wage. it causes employment for unskilled workers
70.
decrease in demand graph
a)
all possible prices
b)
the quantity the sellers are willing to sell
c)
an inverse relationship between price and quantity demanded
d)
price goes down , demand and quantity shift to left
71.
increase in supply graph
a)
quantity supplied exceeds quantity demanded. downward pressure on prices
b)
consumers
c)
a price once achieved will tend to be sustained - no tendency to change
d)
price goes down, demand and quantity shift to right
72.
decrease in supply graph
a)
sum of all past budget deficits
b)
one or the other but not both
c)
price goes down, demand and quantity shift to right
d)
price goes up, demand and quantity shift to left
73.
price ceilings
a)
applied science. technology increases supply
b)
a legal price set below equilibrium . reasons are usually political
c)
a change in quantity demanded reflects a move along a demand curve as the price changes
d)
it must be either supply or demand changing ( or both in the real world)
74.
rent control
a)
a price ceiling placed on rent( pay less than market price)
b)
price down
c)
1.6 trillion
d)
buy less
75.
any type of price ? or price ? is set below equilibrium
a)
any of the previous 5 non-price determinants of supply. expect taxes to change, and expect subsides
b)
good you buy more of as income falls like used cars, generic products , discount clothing
c)
control or cap
d)
True
76.
impact of price ceilings
a)
movement of the entire curve
b)
shortages, black markets, distortion of market signals and misallocations of resources
c)
subsides can be a special tax treatment of a direct payment to encourage ( or discourage ) production
d)
surplus
77.
formal rationing and queuing (getting in line) is used during
a)
A higher price and a higher quantity.
b)
Shortage. The increase in demand will lead to the quantity demanded being greater than the quantity supplied. Competition among buyers will lead to rising prices for chocolate bars. As the price rises, quantity supplied will increase and quantity demanded will decrease until the shortage disappears.
c)
The intersection point when you combine the supply and demand curve.
d)
shortages
78.
black markets ( Illegal / under the table)
a)
landlords know lines exist and try to extort potential clients
b)
along a supply curve as price changes
c)
it depends on whether its superior or inferior goods
d)
a temporary shortage of that good.
79.
Price Support (floor)
a)
The quantity of a good buyers are willing to buy is the same quantity that sellers are willing to sell.
b)
it depends on whether its superior or inferior goods
c)
legal price set above equilibrium. political reasons. cant fall
d)
Cause the supply curve for shoes to shift to the right.
80.
increase in technology pushes
a)
taxes and subsidies ( taxes are a cost of production)
b)
equilibrium wage rate
c)
price down
d)
movement of the entire curve
81.
impact of price floors
a)
Surplus, Surplus Disposal or Control Required, Distortion of Market Signals/Misallocation of Resources
b)
applied science. technology increases supply
c)
a change in quantity demanded reflects a move along a demand curve as the price changes
d)
The quantity of a good buyers are willing to buy is the same quantity that sellers are willing to sell.
82.
disposal
a)
price goes down , demand and quantity shift to left
b)
government buys up surplus
c)
an equilibrium quantity and an equilibrium price
d)
tax revenues exceed government expenditures
83.
policies cannot drag down
a)
quantity supplied > quantity demanded
b)
unskilled labor
c)
price floors
d)
more buyers = increase in demand
84.
control
a)
legal price set above equilibrium. political reasons. cant fall
b)
calculated yearly
c)
pay not to produce ( shift supply curve to left)
d)
The equilibrium price will decrease and equilibrium quantity will increase.
85.
Distortion of Market Signals and Misallocation of Resources
a)
price floor
b)
True
c)
the quantity the sellers are willing to sell
d)
one group does one thing while another group does another
86.
example of price floor
a)
surplus
b)
supply increases
c)
price goes down , demand and quantity shift to left
d)
minimum wage
87.
the interaction of the supply of labor and demand for labor
a)
depends on how much federal government spends and collect in taxes
b)
demand for labor. pushes equilibrium wages up
c)
equilibrium wage rate
d)
product market and consumers
88.
higher wages
a)
Lower. The decrease in demand will result in a lower equilibrium price.
b)
work more
c)
As price increases, quantity supplied increases.
d)
there will always be an inverse ( indirect ) or negative relationships between price and quantity demanded
89.
labor market is
a)
Consumer sovereignty.
b)
As price increases, quantity supplied increases.
c)
unskilled labor
d)
equilibrium wage rate
90.
unskilled labor
a)
no high school education/dropout, 25 and under, works in retail, food services or daycare
b)
a change in quantity demanded reflects a move along a demand curve as the price changes
c)
a shift in the demand curve is caused by a change in one or more of the non-price determinants of demand
d)
X marks the spot
91.
post pandemic increases the
a)
producers
b)
quantity demanded exceeds quantity supplied. upward pressure on prices
c)
demand for labor. pushes equilibrium wages up
d)
buy more
92.
standard treatment still
a)
there will always be an inverse ( indirect ) or negative relationships between price and quantity demanded
b)
any type of government mandated minimum wage is a price support set ABOVE the equilibrium wage. it causes employment for unskilled workers
c)
equilibrium wage rate
d)
10 times in the last 10 years
93.
3 levels of government
a)
price down
b)
price floor
c)
The supply of candy bars will decrease.
d)
federal, state, local
94.
budget
a)
The quantity of a good buyers are willing to buy is the same quantity that sellers are willing to sell.
b)
shortages
c)
movement of the entire curve
d)
a plan for expenditures (outlays) and tax collections (tax revenues and receipts)
95.
balanced budget
a)
A shortage of that good or service
b)
it depends on whether its superior or inferior goods
c)
government expenditures = tax revenues
d)
Consumer sovereignty.
96.
budget surplus
a)
Shortage. The increase in demand will lead to the quantity demanded being greater than the quantity supplied. Competition among buyers will lead to rising prices for chocolate bars. As the price rises, quantity supplied will increase and quantity demanded will decrease until the shortage disappears.
b)
cause the demand curve to shift to the right.
c)
tax revenues exceed government expenditures
d)
all possible prices
97.
budget deficit
a)
price goes up , demand and quantity shift to right
b)
Producers leave -- Supply decreases
c)
Government expenditures exceed tax revenues
d)
a legal price set below equilibrium . reasons are usually political
98.
deficit means
a)
a price ceiling placed on rent( pay less than market price)
b)
tax revenues exceed government expenditures
c)
annual amount
d)
decrease in demand/supply
99.
federal fiscal year
a)
Shortage
b)
October 1 to September 30
c)
A price is determined in the resource market through the interaction of the supply decisions of competing households and the demand decisions of competing businesses
d)
movement of the entire curve
100.
step 1 of federal fiscal year
a)
minimum wage
b)
Few buyers = decrease in demand
c)
the president submits two calendar budgets for the upcoming fiscal calendar to submit to congress early spring
d)
deals with or reflects production options. producers not consumers
101.
the plan goes to congress because
a)
quantity supplied exceeds quantity demanded. downward pressure on prices
b)
every spending and tax bill has to be fully passed by president and congress
c)
landlords know lines exist and try to extort potential clients
d)
a temporary surplus of that good
102.
federal budget deficit for fiscal year
a)
disrupt equilibrium to find another one
b)
1.6 trillion
c)
a shortage and a surplus.
d)
a schedule that shows the quantities of a good consumers are willing and able to purchase at various prices out of a set of all possible prices over a specified period of time
103.
how high will the deficits go in 2024, 2025?
a)
suspends debt ceilings through jan 1,2025 after 2024. claw back unspent federal covid aid
b)
a change in quantity demanded reflects a move along a demand curve as the price changes
c)
depends on how much federal government spends and collect in taxes
d)
A price is determined in the product market through the interaction of the supply decisions of competing businesses and the demand decisions of competing households
104.
federal budget deficit
a)
Government expenditures exceed tax revenues
b)
A situation in which the quantity demanded is greater than the quantity supplied.
c)
calculated yearly
d)
decrease in demand/supply
105.
national debt
a)
A price is determined in the product market through the interaction of the supply decisions of competing businesses and the demand decisions of competing households
b)
a schedule that shows the quantities of a good consumers are willing and able to purchase at various prices out of a set of all possible prices over a specified period of time
c)
sum of all past budget deficits
d)
The equilibrium price will increase and equilibrium quantity will decrease.
106.
current national debt
a)
Government expenditures exceed tax revenues
b)
shortages
c)
an inverse relationship between price and quantity demanded
d)
$ 34 trillion
107.
there are not one big IOU but
a)
hundreds and thousands of smaller IOUs
b)
quantity demanded goes down
c)
A situation in which the quantity demanded is greater than the quantity supplied.
d)
price floors
108.
this debt limit or debt ceiling caps
a)
quantity demanded goes down
b)
quantity demanded exceeds quantity supplied. upward pressure on prices
c)
a temporary surplus of that good
d)
the borrowing authority of federal government
109.
both political parties wants
a)
increase in supply OR decrease in demand
b)
depends on how much federal government spends and collect in taxes
c)
quantity supplied goes up
d)
the debt ceilings to be theirs
110.
debt ceiling raised
a)
Quantity is on the x-axis, price is on the y-axis.
b)
makes the decisons about what and how to produce as well as who gets the stuff through the interaction of buyers and sellers
c)
10 times in the last 10 years
d)
If the government did not fund these public goods then they would not be available, because individuals would not pay to produce these public goods.
111.
debt ceilings matter if
a)
price goes up , demand and quantity shift to right
b)
president and congress cant agree on a budget(fiscal policy)
c)
quantity demanded goes up
d)
The demand for bacon will increase.
112.
US treasury use extraordinary methods until
a)
quantity demanded goes up
b)
Below, shortage
c)
statutory debt limit agreement in june 2023
d)
A situation in which the quantity supplied is greater than the quantity demanded.
113.
the fiscal responsibility act ( June 2 , 2023)
a)
suspends debt ceilings through jan 1,2025 after 2024. claw back unspent federal covid aid
b)
If the government did not fund these public goods then they would not be available, because individuals would not pay to produce these public goods.
c)
price goes down , demand and quantity shift to left
d)
an economic view of the world supply and demand
114.
In a market system, consumers determine what is produced, a concept called:
a)
supply side
b)
$ 34 trillion
c)
Producers enter -- supply increases
d)
Consumer sovereignty.
115.
When the government thinks that the price of a good is too high, they may implement a _________, which will likely lead to _______.
a)
unskilled labor
b)
Above, surplus
c)
shortages, black markets, distortion of market signals and misallocations of resources
d)
price ceiling, shortage
116.
A(n) _________ is a situation in which the quantity demanded of a product is greater than the quantity supplied.
a)
government buys up surplus
b)
Shortage
c)
Lower. The decrease in demand will result in a lower equilibrium price.
d)
shortages, black markets, distortion of market signals and misallocations of resources
117.
If there is a shortage of gasoline, and the price rises, producers will likely
a)
Increase their production of gasoline.
b)
federal, state, local
c)
good you buy more of as income falls like used cars, generic products , discount clothing
d)
tax revenues exceed government expenditures
118.
If there is a shortage of gasoline, and the price rises, consumers will likely
a)
Decrease their consumption of gasoline.
b)
a legal price set below equilibrium . reasons are usually political
c)
the debt ceilings to be theirs
d)
The equilibrium price will decrease and equilibrium quantity will increase.
119.
An increase in the number of consumers in the market for chocolate would
a)
unskilled labor
b)
Lower. The decrease in demand will result in a lower equilibrium quantity.
c)
A change, also called a shift, in demand, is a movement of the entire curve
d)
cause the demand curve to shift to the right.
120.
Demand curves slope downward because there is:
a)
Higher. The increase in demand will result in a higher equilibrium quantity.
b)
disequilibrium.
c)
an inverse relationship between price and quantity demanded
d)
the president submits two calendar budgets for the upcoming fiscal calendar to submit to congress early spring
121.
On a demand graph,
a)
hundreds and thousands of smaller IOUs
b)
October 1 to September 30
c)
Price is on the y axis; quantity is on the x axis.
d)
a Latin phrase that means "all other things held constant"
122.
An increase in the price of peanut butter will:
a)
Cause the demand curve for jelly to shift to the left.
b)
the borrowing authority of federal government
c)
quantity supplied goes down
d)
A situation in which the quantity demanded is greater than the quantity supplied.
123.
If scientists discover that eating bacon reduces cholesterol levels,
a)
When the market price is above or below the equilibrium price.
b)
a temporary surplus of that good
c)
supply increases
d)
The demand for bacon will increase.
124.
The Law of Demand states that
a)
price floors and price ceilings
b)
As price increases, quantity decreases.
c)
1.6 trillion
d)
10 times in the last 10 years
125.
A new technology that reduces the cost of producing shoes would:
a)
price floors and price ceilings
b)
all possible prices
c)
Cause the supply curve for shoes to shift to the right.
d)
quantity supplied goes up
126.
The supply curve slopes upward because:
a)
There is a direct relationship between price and quantity supplied.
b)
quantity demanded goes down
c)
A change, also called a shift, in demand, is a movement of the entire curve
d)
demand side
127.
The Law of Supply states that:
a)
buy less
b)
As price increases, quantity increases.
c)
through the interaction of supply and demand
d)
Higher. The increase in demand will result in a higher equilibrium quantity.
128.
Sugar is an input used to produce candy bars. If the price of sugar increases:
a)
The supply of candy bars will decrease.
b)
Producers enter -- supply increases
c)
decrease in demand/supply
d)
The price at which quantity supplied and quantity demanded are equal. The point at which the supply and demand curves intersect.
129.
On a supply graph:
a)
buy different varied goods and services ( technology, shoes, clothes, cars)
b)
more buyers = increase in demand
c)
quantity supplied > quantity demanded
d)
Quantity is on the x-axis, price is on the y-axis.
130.
An increase in demand shifts the demand curve to the right resulting in a new equilibrium with:
a)
an inverse relationship between price and quantity demanded
b)
increase in supply OR decrease in demand
c)
A higher price and a higher quantity.
d)
As price increases, quantity increases.
131.
A decrease in the demand for a good causes
a)
movement of the entire curve
b)
disrupt equilibrium to find another one
c)
a shift in the demand curve is caused by a change in one or more of the non-price determinants of demand
d)
a temporary surplus of that good
132.
The Law of Demand states that as
a)
it must be either supply or demand changing ( or both in the real world)
b)
False
c)
A good that provides benefits for society but that the market will not or cannot provide
d)
As price increases, quantity demanded decreases.
133.
In a market economy, choices about what goods and services will be produced and at what prices they will be sold are made by
a)
a change in quantity demanded reflects a move along a demand curve as the price changes
b)
any type of government mandated minimum wage is a price support set ABOVE the equilibrium wage. it causes employment for unskilled workers
c)
Consumers and producers.
d)
all possible prices
134.
A decrease in the supply for a good causes
a)
the president submits two calendar budgets for the upcoming fiscal calendar to submit to congress early spring
b)
taxes and subsidies ( taxes are a cost of production)
c)
a temporary shortage of that good.
d)
Higher. The increase in demand will result in a higher equilibrium price.
135.
The Law of Supply states that as
a)
consumers taste and preferences, income, prices of related goods, numbers of buyers in the market, expectations
b)
As price increases, quantity supplied increases.
c)
Cause the demand curve for jelly to shift to the left.
d)
Price is on the y axis; quantity is on the x axis.
136.
At market equilibrium,
a)
more buyers = increase in demand
b)
The quantity of a good buyers are willing to buy is the same quantity that sellers are willing to sell.
c)
product market and consumers
d)
Below, shortage
137.
At the equilibrium price,
a)
The price at which quantity supplied and quantity demanded are equal. The point at which the supply and demand curves intersect.
b)
a change in quantity demanded reflects a move along a demand curve as the price changes
c)
The quantity of a good buyers are willing to buy is the same quantity that sellers are willing to sell.
d)
quantity supplied goes up
138.
The minimum wage is an example of a ______.
a)
price floors and price ceilings
b)
price floor
c)
tax revenues exceed government expenditures
d)
If the government did not fund these public goods then they would not be available, because individuals would not pay to produce these public goods.
139.
The Law of Supply states :
a)
it must be either supply or demand changing ( or both in the real world)
b)
Higher. The increase in demand will result in a higher equilibrium price.
c)
buy less
d)
When the price of a good or service increases, the quantity supplied of that good or service will increase.
140.
Rent control is an example of a _____.
a)
taxes and subsidies ( taxes are a cost of production)
b)
shortages
c)
price ceiling
d)
price goes up, demand and quantity shift to left
141.
The Law of Demand states that:
a)
an equilibrium quantity and an equilibrium price
b)
an economic view of the world supply and demand
c)
As price of a good or service increases, the quantity demanded of that good or service decreases.
d)
Above, surplus
142.
The demand curve slopes ________, the supply curve slopes _________, and point where they intersect is called _________.
a)
quantity supplied = quantity demanded
b)
Downward, upward, equilibrium
c)
price goes down, demand and quantity shift to right
d)
government buys up surplus
143.
A price floor is a price control that holds prices _____ the equilibrium price, and results in _______.
a)
through the interaction of supply and demand
b)
Cost of inputs, technology, number of producers in the market, prices of related goods, government policies, expectations
c)
Above, surplus
d)
federal, state, local
144.
A price ceiling is a price control that holds prices _____ the equilibrium price, and results in _______.
a)
Below, shortage
b)
federal, state, local
c)
one or the other but not both
d)
a schedule that shows the quantities of a good consumers are willing and able to purchase at various prices out of a set of all possible prices over a specified period of time
145.
What is the essential question when attempting to figure out the country's deficit?
a)
What should the government pay for?
b)
Quantity is on the x-axis, price is on the y-axis.
c)
president and congress cant agree on a budget(fiscal policy)
d)
statutory debt limit agreement in june 2023
146.
Which if the following is an example of a strictly public good?
a)
Courts
b)
A good that provides benefits for society but that the market will not or cannot provide
c)
What should the government pay for?
d)
an economic view of the world supply and demand
147.
Why does the government pay for public goods like lighthouses and autopsies?
a)
price floor
b)
The equilibrium price will decrease and equilibrium quantity will increase.
c)
If the government did not fund these public goods then they would not be available, because individuals would not pay to produce these public goods.
d)
government buys up surplus
148.
What is a public good?
a)
A good that provides benefits for society but that the market will not or cannot provide
b)
False
c)
president and congress cant agree on a budget(fiscal policy)
d)
The demand for bacon will increase.
149.
Nearly all consumers can use a public good, regardless of whether they pay for it or not.
a)
the borrowing authority of federal government
b)
What should the government pay for?
c)
True
d)
demand for labor. pushes equilibrium wages up
150.
A government-imposed price ceiling, below the equilibrium price, in the market for a good or service will result in which of the following?
a)
There is a direct relationship between price and quantity supplied.
b)
subsides can be a special tax treatment of a direct payment to encourage ( or discourage ) production
c)
A shortage of that good or service
d)
it depends on whether its superior or inferior goods
151.
If the government decided to subsidize the production of a good, the result would be a decrease in the equilibrium price and an increase in the equilibrium quantity of that good.
a)
False
b)
one or the other but not both
c)
a schedule that shows the quantities of a good consumers are willing and able to purchase at various prices out of a set of all possible prices over a specified period of time
d)
it depends on whether its superior or inferior goods
152.
If producers expect the price of a good to decrease in the future, what will happen to the current equilibrium price and quantity of that good?
a)
no high school education/dropout, 25 and under, works in retail, food services or daycare
b)
Quantity is on the x-axis, price is on the y-axis.
c)
The equilibrium price will decrease and equilibrium quantity will increase.
d)
tax revenues exceed government expenditures
153.
If the number of consumers in the market for good A decreases, what will happen to the equilibrium price and quantity of good A?
a)
quantity supplied exceeds quantity demanded. downward pressure on prices
b)
Producers enter -- supply increases
c)
quantity supplied > quantity demanded
d)
The equilibrium price and quantity will both decrease.
154.
If the government imposes a tax on the production of a good or service, what will happen to the equilibrium price and quantity of that good or service?
a)
The equilibrium price will increase and equilibrium quantity will decrease.
b)
a temporary surplus of that good
c)
A change, also called a shift, in demand, is a movement of the entire curve
d)
A higher price and a higher quantity.
155.
market equilibrium
a)
quantity supplied exceeds quantity demanded. downward pressure on prices
b)
The intersection point when you combine the supply and demand curve.
c)
the debt ceilings to be theirs
d)
Higher. The increase in demand will result in a higher equilibrium price.
156.
equilibrium price.
a)
The intersection point when you combine the supply and demand curve.
b)
The price at which quantity supplied and quantity demanded are equal. The point at which the supply and demand curves intersect.
c)
one group does one thing while another group does another
d)
1.6 trillion
157.
equilibrium quantity
a)
more buyers = increase in demand
b)
consumers taste and preferences, income, prices of related goods, numbers of buyers in the market, expectations
c)
The quantity at which quantity supplied and quantity demanded are equal. The point at which the supply and demand curves intersect.
d)
land, labor, captial and entreprenuerial ability
158.
shortage
a)
no high school education/dropout, 25 and under, works in retail, food services or daycare
b)
A situation in which the quantity demanded is greater than the quantity supplied.
c)
a shortage and a surplus.
d)
shortages or surpluses
159.
surplus
a)
A situation in which the quantity supplied is greater than the quantity demanded.
b)
Consumers and producers.
c)
Lower. The decrease in demand will result in a lower equilibrium price.
d)
no high school education/dropout, 25 and under, works in retail, food services or daycare
160.
If the market price is above or below the equilibrium price, the market is in
a)
$ 34 trillion
b)
disequilibrium.
c)
unskilled labor
d)
A situation in which the quantity demanded is greater than the quantity supplied.
161.
disequilibrium
a)
When the market price is above or below the equilibrium price.
b)
A shortage of that good or service
c)
price goes down , demand and quantity shift to left
d)
The quantity of a good buyers are willing to buy is the same quantity that sellers are willing to sell.
162.
There are two conditions that are a direct result of disequilibrium
a)
the debt ceilings to be theirs
b)
buy and use together ( phone/chargers, chips/dips, shoes/socks)
c)
depends on how much federal government spends and collect in taxes
d)
a shortage and a surplus.
163.
Disequilibrium occurs when the quantity supplied does not equal
a)
the quantity demanded
b)
1.6 trillion
c)
price goes up, demand and quantity shift to left
d)
producers
164.
Shortage =
a)
As price increases, quantity decreases.
b)
quantity demanded > quantity supplied
c)
buy more
d)
increase in the demand for the other
165.
Surplus =
a)
quantity supplied > quantity demanded
b)
As price increases, quantity supplied increases.
c)
supply side
d)
The quantity of a good buyers are willing to buy is the same quantity that sellers are willing to sell.
166.
The demand for chocolate has decreased. While the market is in transition, will there be a shortage or surplus?
a)
a schedule that shows the quantities of a good consumers are willing and able to purchase at various prices out of a set of all possible prices over a specified period of time
b)
Below, shortage
c)
Surplus. The decrease in demand will lead to the quantity supplied being greater than the quantity demanded. Competition among sellers will lead to falling prices for chocolate bars. As the price decreases, quantity supplied will decrease and quantity demanded will increase until the surplus disappears.
d)
quantity supplied goes down
167.
Will the new equilibrium price be higher or lower?
a)
True
b)
Lower. The decrease in demand will result in a lower equilibrium price.
c)
The intersection point when you combine the supply and demand curve.
d)
producers
168.
Will the new equilibrium quantity be higher or lower?
a)
buy less
b)
Lower. The decrease in demand will result in a lower equilibrium quantity.
c)
A shortage of that good or service
d)
can any of the previous four reasons, if expectations are very negative the demand will shift
169.
the quantity of the good the buyers are willing to buy equals
a)
Cause the demand curve for jelly to shift to the left.
b)
the quantity the sellers are willing to sell
c)
sum of all past budget deficits
d)
hundreds and thousands of smaller IOUs
170.
is equilibrium a constant unchanging point
a)
The demand for bacon will increase.
b)
price floors
c)
The quantity at which quantity supplied and quantity demanded are equal. The point at which the supply and demand curves intersect.
d)
no markets do have a natural tendency to settle at the equilibrium price but the price may bounce around a bit in the process
171.
The demand for chocolate has increased. While the market is in transition, will there be a shortage or surplus?
a)
a shortage and a surplus.
b)
one or the other but not both
c)
Shortage. The increase in demand will lead to the quantity demanded being greater than the quantity supplied. Competition among buyers will lead to rising prices for chocolate bars. As the price rises, quantity supplied will increase and quantity demanded will decrease until the shortage disappears.
d)
As price increases, quantity increases.
172.
Will the new equilibrium price be higher or lower?
a)
Higher. The increase in demand will result in a higher equilibrium price.
b)
price ceiling, shortage
c)
landlords know lines exist and try to extort potential clients
d)
pay not to produce ( shift supply curve to left)
173.
Will the new equilibrium quantity be higher or lower?
a)
buy and use together ( phone/chargers, chips/dips, shoes/socks)
b)
As price increases, quantity supplied increases.
c)
price down
d)
Higher. The increase in demand will result in a higher equilibrium quantity.
174.
price controls examples
a)
subsides can be a special tax treatment of a direct payment to encourage ( or discourage ) production
b)
there will always be a direct or positive relationship between price and quantity supplied
c)
any type of government mandated minimum wage is a price support set ABOVE the equilibrium wage. it causes employment for unskilled workers
d)
price floors and price ceilings
175.
buyers make up
a)
work more
b)
demand side
c)
makes the decisons about what and how to produce as well as who gets the stuff through the interaction of buyers and sellers
d)
through the interaction of supply and demand
176.
sellers make up
a)
Cost of supplies needed to produce a good. As costs increase, supply decreases. Decrease costs and supply increases.
b)
supply side
c)
taxes and subsidies ( taxes are a cost of production)
d)
a legal price set below equilibrium . reasons are usually political
177.
As buyers and sellers interact, the market moves toward ___________
a)
suspends debt ceilings through jan 1,2025 after 2024. claw back unspent federal covid aid
b)
deals with or reflects production options. producers not consumers
c)
government expenditures = tax revenues
d)
an equilibrium quantity and an equilibrium price
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