MODULE 2 ECONOMICS Flashcards
According to the Law of Supply, as prices ______________, quantity supplied _____________.
rise; rises
falls; rises
both of the above
none of the above
rise; rises
According to the Law of Demand, as prices ___________, quantity demanded _________.
rise; falls
fall; rises
both of the above
none of hte above
both of the above
According to the law of supply:
there is a direct relationship between price and the quantity supplied.
there is an inverse relationship between price and the quantity supplied.
there is a direct relationship between price and quantity demanded.
there is an inverse relationship between price and quantity demanded.
there is a direct relationship between price and the quantity supplied.
Which of the following pairs of goods are substitutes?
Computer and Software
Doctor and Patient
Bush’s Beans and Blue Runner Beans
Each of the above pairs are substitutes
Bush’s Beans and Blue Runner Beans
Any given demand or supply curve is based on the ceteris paribus assumption that ___________________.
everything is variable.
all other things are held equal
no one knows which variables will change and which will remain constant.
what is true for the individual is not necessarily true for the whole.
all other things are held equal
______________ are enacted when discontented sellers, feeling that prices are too low, appeal to legislators to keep prices from falling.
Rent controls
Price ceilings
Price floors
Subsidies
Price floors
If the price is below the equilibrium level, then the quantity demanded will exceed the quantity supplied. This is known as ___________________
excess supply
excess demand
ceteris paribus
a price ceiling
excess demand
The ____________ is the quantity where quantity demanded and quantity supplied are equal at a certain price.
quantity demanded
equilibrium quantity
demand schedule
supply schedule
equilibrium quantity
When Sally eats Pizza, she always has Root Beer. To Sally, Pizza and Root Beer are __________.
complements
substitutes
inferior goods
none of the above
complements
Consider the demand for condos in Utah. An decrease in the price of a condo would be caused by a shift in demand to the ______ and a shift in supply to the _______.
right; right
right; left
left; right
left; left
left; right
A rightward shift in the supply curve for personal computers could be explained by __________.
decreased incomes of the purchasers of personal computers
an increase in taxes on the manufacturers of personal computers
an decrease in subsidies given to the manufacturers of personal computers
a decrease in the costs of manufacturing personal computers
a decrease in the costs of manufacturing personal computers
If new manufacturers enter the computer industry, then (ceteris paribus):
the supply curve shifts to the left.
the supply curve shifts to the right.
the demand curve shifts to the left.
some established manufacturers must exit the industry.
the supply curve shifts to the right.
Assume that Molly operates a food truck in the parking lot of RPCC. If Sally started a food truck and also operated it at RPCC right next to Sally, the prices of food sold at RPCC should _____.
rise
fall
fall
When __________________, the supply curve will shift to the right.
prices rise
incomes rise
costs of production fall
all of the above
Costs of production fall
Creole tomatoes and Roma tomatoes are substitutes. If the price of Roma tomatoes increases, we would expect that the demand curve for Creole tomatoes to shift to the _______.
right
left
right
