Day 4 Flashcards
When the economy is entering a slow down, what is the expected outcome?
A drop in interest rates
MCQ-15775
What would the federal reserve peruse under expansionary policy?
Purchase federal securities and lower the discount rate
MCQ-05870
What are complementary goods?
Goods that are used together
EX: Gas and motor oil / cameras and rolls of film
MCQ-04011
In microeconomics, the distinguishing characteristic of the long run on the supply side is that:
All inputs are variable
MCQ-03666
Increase in market supply of beef would:
Increase the quantity of beef demanded
MCQ-03674
The competitive model of supply and demand predicts that surplus will occur when:
A minimum price above the equilibrium price
MCQ-03670
What does a perfectly inelastic supply curve look like?
Vertical
MCQ-15767
In competitive markets, an increase in the minimum wage will:
Increase unemployment
When minimum increases, employers will hire fewer people
MCQ-03453
Equilibrium wage for low skilled workers is $6.00. if the government increases minimum wage to $7.00, what would be the effect on the market for low skilled labor?
An excess supply of labor would result
MCQ-03460
When the supply of and demand for a good both increase, what are the results?
Equilibrium price may increase, decrease or remain unchanged
MCQ-03694
An increase in minimum wage will:
- Will move the employers up the demand curve - causing the labor quantity demanded to fall
- Decrease in quantity of labor demanded and an increase of quantity of labor supplied
MCQ-03820
In competitive markets, an equal increase in demand and supply can always be expected to:
Increase market clearing quantity
MCQ-03983
If a product has a price elasticity of demand of 2.0, the demand is said to be:
Relatively Elastic
MCQ-04034
