ECON 2301 Chapter 3

48. Which of the following refers to a change in quantity supplied

A movement from one point to another on a fixed curve

17. Which of the following best describes why a surplus would not persist for very long

A surplus prompts sellers to lower the price to encourage buyers by increasing the incentive to buy.

3. virtual and/or physical institution or space

The pursuit of buyers and sellers in making themselves better off.

47. The goal of consumers is to maximize

Utility

32. Which of the following illustrates the relationship between a good and its complement

When the price of lettuce increase, the demand for salad dressing decreases, 33. when the price 0f tuition decreases, the demand for textbooks increases

39. Which pair exemplifies complementary goods

a hot dog and relish

31. Which of the following are examples of a market

eBay, a local gas station, The New York Stock Exchange, a pay-to-pay online gaming site

43. Which of the following define ceteris paribus

other-things-equal, The idea that factors other than those being considered in a particular analysis do not change.

1. In the circular flow model, the market economy creates Continuous

repetitive flows of goods and services, and factors

27. International participants participate the product market by

supplying imports, demanding exports

10. The supply curve is

An Upward sloping curve

23. All of the following would cause an increase in equilibrium price and quality, except

An increase in supply while holding demand constant

29. Which of the following would result in a change in supply

An increase in the exercise tax on cigarettes, An increase or decrease in wages, An increase in the number of shoe stores at the local mall.

49. Which of the following illustrates a change in quantity demanded

As a result of increasing prices, Mr. Snow decides to buy fewer shovels during a snowy winter.

2. From an economic prospective, which of the following are true of a market

Buyers and sellers interact in their desire to buy and sell a good or service, It is a

7. A table showing the quantities of a good a consumer is willing and able to buy at alternative places in a given time period, ceteris paribus is a

Demand schedule.

15. True or False: A shortage occurs when quantity supplies exceeds quantity demanded

False

20. The three main decisions that must be addressed by an economic system included

How output is produced, What goods and services to produce, For Whom output is produced

9. Which of the following is a determinant of demand

Income

50. The determinant of supply dealing with alternative products that can be produces by firms is called

Price changed or paid for substitute goods in production

44. Which of the following are determinant of supply

Taxes, Subsides

16. The use of market prices and sales to signal desired outputs (or resource allocation) is called

The Market Mechanism

12. What determines market price and equilibrium output in a market

The interaction of buyers and sellers

41. Government provided goods and services are not free because

consumers and businesses pay taxes to receive the goods or service, a cost is borne by society in utilizing these resources to produce any good or service