Econ Chapter 6

A price floor is a legislated minimum price that is below the equilibrium price

False

Before 1989 in the USSR, officials frequently set prices at market equilibrium

False

Price controls bring about more exchange than would exist without them

False

The reason you don't see scalpers at starbucks is because there are laws to prohibit scalping coffee

False

The winning combination for a high salary is high supply and low demand for a job

False

equilibrium exists in all markets, all the time

False

I didn't add the graphs to this quizlet so you should...

Study them on your own

price controls..

decrease the amount of exchange that occurs

In general, no matter where you go in the US, the price of a loaf of bread is approximately the same

True

Price could eliminate freeway congestion during heavy travel times when traffic jams are experienced

True

Price directs the allocation of resources away from some goods, toward others

True

an auction would be a good way to describe markets in the US

True

a price floor results in

a shortage

at the equilibrium price, which of the following is true?

buyers and sellers are satisfied, buyers have bought everything they wanted to buy, sellers have sold everything they wanted to sell

a legal maximum price at which good can be sold is a..

price ceiling

in a free enterprise market, who or what allocates resources?

prices

which is true when there is a shortage in the market

prices may rise

inventory includes which of the following..

stock on hand

Equilibrium price is

the price that occurs when the quantity demanded is equal to the quantity supplied

if there were a shortage of nurses, we would expect..

the wages of nurses to increase

if a greater supply of labor were combined with decrease demand for labor, we might expect

wages to fall

if all else remains the same, a decrease in the demand for a good..

will decrease the price