Throck Eco Ch 7 2011 Test Review
Quiz yourself by thinking what should be in
each of the black spaces below before clicking
on it to display the answer.
Help!
|
|
||||
|---|---|---|---|---|---|
| According to the law of demand, when the price of an item increases, what happens to quantity demanded? | it decreases or falls
🗑
|
||||
| According to the law of supply, higher prices cause producers to do what? | increase the supply
🗑
|
||||
| What type of relationship exists between price and quantity demanded? | inverse
🗑
|
||||
| What type of relationship exists between price and quantity supplied? | direct
🗑
|
||||
| What affects the quantity demanded of a product, and is illustrated on a curve as a shift a long the line? | price
🗑
|
||||
| What refers to the fact that additional satisfaction declines as additional units of an item are consumed? | law of diminishing marginal utility
🗑
|
||||
| If the price of a product is above its equilibrium price, what happens? | a surplus, as people do not buy as much of the product and producers make more because the price is high
🗑
|
||||
| If the price of a product is below its equilibrium price, what happens? | a shortage occurs as people buy more and more, and producers make less because the price is low
🗑
|
||||
| What "effect" says that if two items satisfy the same need and the price of one increases (such as DVDs and blue rays), people will buy the lower priced item. | substitution effect
🗑
|
||||
| If the population increases, what happens to demand for most products? | it increases
🗑
|
||||
| What direction does a a supply and demand curve shift if there is a decrease? | to the left
🗑
|
||||
| When a product becomes a fad, what happens to demand? | it increases and the curve shifts to the right
🗑
|
||||
| List some goods/services that have an inelastic demand. (meaning demand isn't affected by price) | medicine, sugar, salt, pepper, heart surgery
🗑
|
||||
| If two items are complimentary goods, such as peanut butter and jelly, how will a decrease in the price of peanut butter affect jelly? | demand will increase
🗑
|
||||
| If technology increases, what happens to supply? | increases
🗑
|
||||
| If the price of inputs (land, labor, capital) increases, what will happen to supply? | decrease
🗑
|
||||
| If taxes increase, what will happen to supply? | decrease
🗑
|
||||
| If government subsidies increase, what will happen to supply? | increase
🗑
|
||||
| What determines equilibrium price? | interaction of supply and demand
🗑
|
||||
| When a change in the price of an item leads to a larger change in quantity demanded, what is the demand? | elastic, such as with Cokes and steaks.
🗑
|
||||
| What two things mainly determine how much of an item you will buy? | price and your income
🗑
|
||||
| What is elasticity? | measure of consumer's responsivemnss to an increase or decrease inprice
🗑
|
||||
| When two items satisfy the same need, what are they called? | substitutes
🗑
|
||||
| What rule states that as the price of an item increases you cannot continue to buy the same amount if your income stays the same? | real income effect
🗑
|
||||
| What is the equilibrium price? | price at which producers and buyers agree to.
🗑
|
||||
| What is the process of freely exchanging goods and services through voluntary exchange? | market
🗑
|
||||
| tables showing either quantity supplied or demanded at every possbile price are called what? | schedules
🗑
|
||||
| What happens to equilbirium price is supply increases? | it decreases
🗑
|
||||
| What happens to the equilbrium price if demand increases? | increases
🗑
|
||||
| If the quantity demanded is higher than the quantity supplied, what happens? | shortages
🗑
|
||||
| If prices are expected to decrease, what happens to current demand? | decreases
🗑
|
||||
| What does a supply curve look like? | upward sloping line
🗑
|
||||
| What does a demand curve look like? | downward sloping line
🗑
|
||||
| Draw a diagram of a supply and demand curve and label the lines S1 and D1. |
🗑
|
||||
| Draw a supply and demand curve and mark the equilibrium price. | .
🗑
|
||||
| Draw and supply and demand curve, and illustrate what happens to the equilbrium price if overall demand increases. | .
🗑
|
||||
| If price is the only thing to change, what happens to the supply or demand curve? | it will be seen as movement along the curve, from point to point
🗑
|
||||
| What happnens to supply and demand curves if something other than price affects the supply or demand? (so quantity supplied or demanded changes at every possible price) | the entire curve will shift left or right
🗑
|
Review the information in the table. When you are ready to quiz yourself you can hide individual columns or the entire table. Then you can click on the empty cells to reveal the answer. Try to recall what will be displayed before clicking the empty cell.
To hide a column, click on the column name.
To hide the entire table, click on the "Hide All" button.
You may also shuffle the rows of the table by clicking on the "Shuffle" button.
Or sort by any of the columns using the down arrow next to any column heading.
If you know all the data on any row, you can temporarily remove it by tapping the trash can to the right of the row.
To hide a column, click on the column name.
To hide the entire table, click on the "Hide All" button.
You may also shuffle the rows of the table by clicking on the "Shuffle" button.
Or sort by any of the columns using the down arrow next to any column heading.
If you know all the data on any row, you can temporarily remove it by tapping the trash can to the right of the row.
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
Created by:
davislauren
Popular Finance sets