Econ Chapt 3

Front 1

All of the following exemplify an improvement in technology affecting supply, except:

Back 1

increased subsidies to farmers for producing corn for its coversion to ethanol.

Front 2

T/F: Allocative efficiency is the particular mix of goods and services least valued by society

Back 2

False

Front 3

Substitution in production is a determinant of _____

Back 3

Supply

Front 4

Competition among corn producers forces them to use the best tehcnology and right mix of productive resources; otherwise their cost will be too high relative to the market proce and they will be unproiftable. This is best described as:

Back 4

Productive efficiency

Front 5

Government-controlled prices in the form of proce ceilings and price floors do which of the following:

Back 5

Distort resources allocation

Stifle the rationing function of prices

Produce negative side effects

Front 6

Improvements in technology are a determinant of:

Back 6

Supply

Front 7

The concept of demand can be summarized by a schedule or curve showing the quantity of a product that would be:

Back 7

Consumed at various possible prices

Front 8

If an increase in supply is smaller than a decrease in demand, the equilibrium quantity will

Back 8

decrease

Front 9

Which of the following refers to a particular apportionment or mix of goods and services most highly valued by society?

Back 9

Allocative efficiency

Front 10

Which of the following serve as complementary goods or services to your economics course?

Back 10

This Learnsmart tutorial

A note taking device

Front 11

T/F: A price at or above the price floor is illegal?

Back 11

False

Front 12

Government controlled prices cause:

Back 12

Surpluses
Shortages
Negative side effects
distortions in resource allocation

Front 13

T/F: Consumer expectations are a determinant of supply

Back 13

False

Front 14

A change in quantity demanded is caused by an increase or decrease in the _____ of the product under consideration and nothing else.

Back 14

price

Front 15

Which of the following refers to demand?

Back 15

The buyer side of any market

Front 16

The supply curve is _____ sloping curve

Back 16

An Upward

Front 17

An increase in _____ while holding _____ constant results in a decrease in equilibrium price, but an increase in equilibrium quantity.

Back 17

Supply, Demand

Front 18

T/F: The prices of the resources used in the production process help determine the costs of production incurred by films

Back 18

True

Front 19

_____ in supply while holding demand constant results in an increase in equilibrium price, but a decrease in equilibrium quantity.

Back 19

A decrease

A shift leftward

Front 20

Quantity demanded is illustrated on the _____ axis, while price is illustrated on the _____ axis.

Back 20

x,y

Front 21

In certain markets, the _____ sometimes concludes that supply and demand will produce prices that rae unfairly high for buyers or unfairly low for sellers

Back 21

government

Front 22

The demand curve measures quantity _____ on the horizontal axis and _____ on the vertical axis

Back 22

demanded, price

Front 23

Choose all of the following that will cause a change in supply, not quantity supplied

Back 23

Technology

Producer Expectations

Number of sellers

Front 24

A schedule or a curve that shows the various amount of a product that consumers are willing to and able to purchase at each of a series of possible process during a specified period of time is called:

Back 24

Demand

Front 25

In order to construct a demand curve and demonstrate the law of demand, one would have to:

Back 25

draw a downward sloping curve to demonstrate the inverse relationship between price and quantity demanded

Front 26

Which of the following summarize the determinants of demand and their net effect on the demand curve?

Back 26

An increase in income will shift the demand curve to the right for a normal good and shift the demand curve to the left for an inferior good.

A change in the number of buyers will increase or decrease demand an shift the demand curve to the right or left respectively.

A change in the price of related good will increase or decrease demand and shift the demand curve to the right or left respectively

A change in consumer expectations will increase or decrease demand and shift the curse to the right or left respectively.

Front 27

On a simple demand model, a change in quantity demanded is illustrated by a _____ and a change in demand is illustrated by a _____.

Back 27

movement along the demand curve; shift of the demand curve.

Front 28

An increase in equilibrium quantity and indeterminate change in equilibrium price is a result of which the following?

Back 28

A simultaneous and proportional increase in supply and demand

Front 29

Which of the following type of goods affect the demand for a product due to a change in their price?

Back 29

Complementary goods

Substitute goods

Front 30

A shortage results from an excess of quantity _____

Back 30

demanded

Front 31

An unfavorable change in consumer tastes and preferences for a product will _____ demand, shifting the demand curve to the _____

Back 31

Lessen, left

Front 32

An economic unit, meaning a consumer or producer, should continue to engage in an activty as long as the marginal _____ exceeds the marginal _____

Back 32

benefit, cost

Front 33

Which of the following describes the law of demand?

Back 33

All other things being equal, as price increases, quantity demanded decreases

All other things being equal, as price decreases, quantity demanded increases

Front 34

A demand schedule illustrates the relationsip between price and quantity in a _____ format, whereas the demand curve is a _____ representation.

Back 34

tabular ; graphical

Front 35

A decrease in demand while holding supplly constant results in:

Back 35

a decrease in both equilibrium price and quantity

Front 36

T/F: The market supply curve is derived by summing up the producers individual demand curves for good or service.

Back 36

False

Front 37

The only factor that causes a movement along the supply curve is:

Back 37

price