WorksheetsUnit 2 HS Exam Review
Total questions: 24
Worksheet time: 13mins
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
Of the following goods, which is the most elastic?
Putting air in your tire when you have somewhere to be
Shopping for a truck (large share of your income)
Lifesaving medication
Getting your old AC unit a tune-up in the spring
Of the following goods, which is the most inelastic?
Putting air in your low tire
Buying the new Nikes that dropped an hour ago
Lifesaving medication
Getting your old AC unit a tune-up in the spring
A firm increases its price by 15%, and consumers continue to purchase the good with no drop off in quantity demanded. This means that the price elasticity is:
Unitary
Perfectly Inelastic
Inelastic
Perfectly Elastic
A decrease in the price of a good would increase consumer surplus.
True
False
If a good or service has a higher quantity supplied than quantity demand then there is:
A Surplus
A Shortage
Indeterminate
An Equilibrium
Student A is willing to pay $100 for a concert ticket, and Student B is willing to pay $90. If the concert ticket costs $50, then how much Consumer Surplus do they receive?
$190
$240
$0
$90
Which one of the following scenarios is an example of the Tragedy of the Commons?
You go trick-or-treating, but no one passes out candy
You go trick-or-treating, but the candy people hand out is terrible
You go trick-or-treating, but the first trick or treater at every house takes all the candy
You get a stomach ache from all the candy you ate after going trick-or-treating
According to the chart, what is the equilibrium price and quantity WITHOUT paying the costs of the externality?
Price of $25 and a Quantity Demanded of 5
Price of $15 and a Quantity Demanded of 4
Price of $12 and a Quantity Demanded of 5
Price of $5 and a Quantity Demanded of 4
According to the chart, what is the equilibrium price and quantity AFTER paying the costs of the externality?
Price of $25 and a Quantity Demanded of 5
Price of $15 and a Quantity Demanded of 4
Price of $12 and a Quantity Demanded of 5
Price of $5 and a Quantity Demanded of 4
When the elasticity of supply is greater than 1, which of the following it true?
A supplier can easily adjust its production process
A supplier can NOT easily adjust its production process
Supply is relatively elastic
Student A moves into a new apartment and goes to set up their electricity. Upon researching local electric companies, they find out that there is only one provider. This is likely to make their demand for local electricity:
Elastic (responsive to differences in price)
Elastic (unresponsive to differences in price)
Inelastic (responsive to differences in price)
Inelastic (unresponsive to differences in price)
If the change in quantity is greater than the change in price, this means a good is:
Unitary
Elastic
Inelastic
If the change in quantity is equal to the change in price, then the product is:
Unit Elastic
Elastic
Inelastic
If the demand curve is more inelastic, which stakeholder bears the largest burden of the tax?
consumer
producer
government
consumers and producers equally share the burden
