ECO unit 3 test

In the supply-and-demand schedule shown above, at prices of _____ and _____, there is excess supply because quantity supplied is greater than quantity demanded.

$150, $200

Suppose that consumers' incomes increased, such that more video games were demanded at each price level. After the increase in demand, the new equilibrium price is _____, where both supply and demand equal _____.

$160, 300 video games

In the supply-and-demand schedule shown above, the equilibrium price is _____.

$100

In the supply-and-demand schedule shown above, at prices of _____ and _____, there is excess demand because quantity demanded is greater than quantity supplied.

$50, $75

1.Complement 2.Substitute 3.Demand Increases 4.Demand Decreases

1.Ice cream and ice cream cones 4.What happens to the demand for ice cream cones, if the price of ice cream increases? 2.Butter and margarine 3.What happens to the demand for butter, if the price of margarine increases?

1. Economies of Scale 2. Financial Capital 3. Franchise 4. Grant 5. Depository Institution

2.Money used for investment 5.Financial institution whose funds come mainly from deposits 1.Decreasing the average cost of each good as output increases 4.Monetary aid given by another organization (such as the government or corporation) 5.Permission granted to other people to sell a business's goods or services

In the supply-and-demand schedule shown above, at the equilibrium price, the quantity supplied is _____ and the quantity demanded is _____.

200, 200

In the supply-and-demand schedule shown above, at a price of $150, the quantity supplied of video games is _____ and the quantity demanded of video games is _____.

250, 100

_____ are rules that prevent the creation and behavior of monopolies.

Antitrust laws

In one or two sentences, explain why there is no excess demand or excess supply at the equilibrium price.

Equilibrium is the point where supply and demand meet and the prices are set. Because the price is set as a equilibrium (where supply and demand meet), there won't be an excess to of either. However if you set the price above equilibrium, you move away from equilibrium and have disequilibrium can create excess supply or excess demand. Hope this helps! Can I get a brainliest? I need it BADLY!!!

In three to five sentences, explain the role of the household in the circular flow model. Which role is the most important? Why?

National income, output, and expenditure are generated by the activities of the two most vital parts of an economy, its households and firms, as they engage in mutually beneficial exchange. The primary economic function of households is to supply domestic firms with needed factors of production - land, human capital, real capital and enterprise. The factors are supplied by factor owners in return for a reward. Land is supplied by landowners, human capital by labor, real capital by capital owners (capitalists) and enterprise is provided by entrepreneurs. Entrepreneurs combine the other three factors, and bear the risks associated with production.

_____ is a market structure that has few sellers who can influence the price. Products can be identical or differentiated, such as in the steel or car markets.

Oligopoly

Suppose that producers are charging a price that is higher than the equilibrium price. Will this create a surplus or shortage of goods? In two or three sentences, explain your answer.

This will create a surplus of the product. Because with the price being higher there won't be as many purchases as there would be if there was a cheaper alternative.

Two new companies start to produce HDTVs. This results in _____ in the _____ HDTVs.

an increase, supply of

You can afford to buy the latest HDTV, which means that it _____ as demand for you.

counts

A factory can produce cars and trucks. If the price of cars increases, then the supply of trucks will _____.

decrease

Your car still has a marginal cost of $20,000. But, the market price has now increased to $25,000. Your incentive to supply cars is to _____.

earn a profit

Fiscal policy, or changes in tax levels and spending, is carried out by the

government

Which of the following is NOT part of the simple circular flow model?

government

At the lowest price for a TV, the number people demanding the good is _____ the number who demand the good at the highest price.

greater than

Not-for-profit organizations are established mainly for religious, civic, educational, or purposes.

health

Select all that apply. Select the items that describe perfect competition.

identical products open entry and exit price taker

Liability rules, property rights, contract enforcement, and standards for weights and measures affect the for people to produce and exchange goods and services.

incentives

Which of the following describe a public good?

includes roads, education, and the police force provided by the government in market economies can provide benefits to many people at the same time

Over the summer, 100 new families moved into town. This will _____ the demand for goods and services, at each price level.

increase

At the lowest price for a TV, producers will supply the _____ televisions.

least

The cost of electronic parts increased. Now, producers of electronic products will supply _____ products.

less

To figure out price and quantity in a monopoly, a business finds the point at which marginal cost equals _____.

marginal revenue

HDTVs go on sale, which reduces the price. This means that _____ people will demand the product.

more

In perfect competition, sellers have _____ control over price.

no

Suppose that consumers' incomes increased, such that more video games were demanded at each price level. This means that video games are a(n) _____ good.

normal

You chose to buy a red pair of shoes, rather than a black pair. Your demand was based on _____.

preference

The graph above shows how the price of video games varies with the demand quantity. Suppose that the price of video games is set at $100 and not allowed to decrease. This is an example of a _____.

price floor

The graph above shows how the price of video games varies with the demand quantity. The equilibrium _____ is $50, and the equilibrium _____ is 200 video games.

price, quantity

A monopolist's goal is to maximize _____.

profits

Which of the following would not be a role of government in the circular flow of the economy?

promoting economic equity and security

If the government wants to help the economy to grow, it can increase , but this can also increase the budget debt.

spending

Which of the following would NOT be considered leakage in the circular flow model?

transfer payments

You produce a car that costs $20,000 to make. The market price for the car is $15,000. At this price, you would supply _____ cars.

zero