macro ch3
Which of the following factors increase the demand for any good or service?
-An increase in the number of buyers -An increase in the price of a substitute good -A rise in consumer income if the product is a normal good
Select all that apply Which of the following would result in a change in supply?
-An increase in the number of shoe stores at the local mall -An increase in the excise tax on cigarettes -An increase or decrease in wages
Select all that apply In which of the following situations do governments intervene to prevent prices from rising above or falling below their equilibrium levels?
-Prices are too high for consumers. -Prices are too low for firms.
Equilibrium price in a market changes when there is a change in which of the following?
-Supply -Demand
Select all that apply Which of the following are determinants of supply?
-Taxes and subsidies -Technology -Resource prices -Producer expectations -Taxes and subsidies -Prices of other goods
Select all that apply In general, what goals does the improvement of production techniques help companies to achieve?
-Use fewer resources per unit of output -Lower production costs -Increase supply
Price controls or ______ mandated in the apartment rental market benefit the consumer by establishing a price ______ the free market equilibrium price.
-ceilings; -below
At the equilibrium price, quantity ---equals quantity ---.
-demand -supply
Select all that apply Equilibrium price in a market changes when there is a change in which of the following?
-demand -supply
At the market ---- price, quantity demanded equals quantity ----
-equilibrium -supplied
Government may place legal limits on prices when it is determined that prices are unfairly ---- (high/low) for buyers or unfairly lowBlank 2Blank 2 low ----- (high/low) for sellers.
-high -low
Select all that apply If the government of a country subsidizes the production of a good, it:
-lowers the cost of production. -increases supply.
The interaction between buyers and sellers, which determines the equilibrium---- and ----, is illustrated by the intersection of the demand and supply curves. (Enter only one word in each blank.) Listen to the complete question
-price -quantity
Select all that apply Government-controlled prices cause ______.
-surpluses -shortages -distortions in resource allocation
An increase in equilibrium price and indeterminate effect on equilibrium quantity is a result of which of the following?
A decrease in supply and a simultaneous increase in demand
___,while holding demand constant, results in an increase in the equilibrium price of the good, but a decrease in the equilibrium quantity of the good.
A decrease in the supply of a good
Which of the following in the rental market for housing benefits renters, but makes it unprofitable for suppliers or landowners?
A price ceiling
Which of the following refers to government financial assistance for the production of a good which lowers producers' costs and increases supply?
A subsidy
Which of the following refers to a particular apportionment or mix of goods and services most highly valued by society?
Allocative efficiency
Which of the following reflects an increase in demand, while holding supply constant?
An increase in both equilibrium price and quantity
A decrease in equilibrium price and indeterminate result on equilibrium quantity is a result of which of the following?
An increase in supply and a simultaneous decrease in demand
How do improvements in productive technology enable firms to produce more units of output?
By utilizing fewer resources, thereby lowering costs
Which of the following shows the effects on equilibrium price and quantity due to an increase in supply and a simultaneous decrease in demand?
Equilibrium price falls and the change in equilibrium quantity is indeterminate.
Which of the following describe the effects on equilibrium price and equilibrium quantity as a result of a decrease in supply and a simultaneous increase in demand?
Equilibrium price rises and the change in equilibrium quantity is indeterminate.
True or false: A change in supply is represented by a movement along the curve, not a shift of the curve.
False
True or false: A price at or above the price floor is illegal.
False
Which of the following causes shortages or surpluses, distortions in resource allocation, and negative side effects?
Government-controlled prices
In which of the following situations will quantity supplied exceed the quantity demanded?
In the imposition of a price floor.
Which of the following does not exemplify an improvement in technology affecting supply?
Increased subsidies to farmers for producing more corn
What is the additional utility gained from consuming one more unit of a good or service?
Marginal benefit
Which of the following is the most important factor for a producer in determining how much of a product to produce?
Price
Which of the following describes the effects on equilibrium price and equilibrium quantity as a result of a simultaneous increase in supply and demand?
The change in price is indeterminate and quantity rises.
What is the price where the intentions of buyers and sellers match?
The equilibrium price
What determines market price and equilibrium output in a market?
The interaction of buyers and sellers
Other things equal, which of the following is correct regarding increasing the number of sellers in an industry?
The market supply becomes greater
What does allocative efficiency refer to?
The particular mix of goods most highly valued by society
Which of the following does not shift the supply curve?
The price of the product itself
At equilibrium quantity, which of the following is true?
The quantity demanded equals quantity supplied.
True or false: Resource costs or changes in these costs to production are responsible for shifts in the supply curve. True false question.
True
A decrease in demand while holding supply constant results in ______ in both equilibrium price and quantity.
a decline
A decrease in demand while holding supply constant results in _______.
a decrease in both equilibrium price and quantity
An increase in the equilibrium price of a good and an indeterminate change in the equilibrium quantity is the result of ______.
an increase in demand and decrease in supply
The effects on equilibrium price and quantity due to an increase in supply and simultaneous increase in demand are shown by ______.
an increase in the equilibrium quantity and an indeterminate change in price
The supply curve is ______ sloping curve.
an upward
At any price below equilibrium price, or price ceiling, quantity demanded will ______ quantity supplied resulting in a persistent excess demand or shortage of product.
be greater than
The rationing function of prices refers to the ability of the competitive forces of supply and demand to establish a price at which ______..
buying and selling decisions are consistent
A price ----(floor/ceiling) is the maximum legal price a seller may charge for a product or service.
ceiling
The ______ incurred by firms when producing a good or service arise from the prices of the inputs that are used to produce said good or service.
costs of production
An increase in business taxes causes a(n) ______ in supply and will ______ production costs.
decrease; increase
An increase in supply while holding demand constant results in a(n) ______ in equilibrium price, but a(n) ______ in equilibrium quantity.
decrease; increase
A change in supply or a change---- in will disturb equilibrium price.
demand
A shortage results from an excess of quantity _____.
demanded
With a price ceiling, the quantity of a product----- will exceed quantity----- , resulting in a persistent shortage of the product.
demanded -supplied
When a price ceiling is established, the new price and quantity are now at ______.
disequilibrium
The interaction between buyers and sellers determines the equilibrium price and the--- quantity. (Answer in one word.)
equilibrium
The---- (one word) output is the quantity at which quantity demanded equals quantity supplied in a competitive market.
equilibrium
the interaction between buyers and sellers determines the equilibrium price and the -----quantity. (Answer in one word.)
equilibrium
Changes in ______ about the future price of a product may affect the producer's current willingness to ______ that product
expectations; supply
If a decline in demand is greater than an increase in supply, the equilibrium quantity will ______.
fall
True or false: A change in one of the determinants of supply results in a movement along the supply curve.
false
True or false: An increase in the sales, property or any other tax will decrease production costs and increase supply.
false
A government-set minimum price, such as for agricultural products, is called a price----
floor
A price--- (one word) is a minimum price fixed by the government, generally imposed above the equilibrium price.
floor
Producer expectations refer to firms' expectations of ______ for a good or service that they produce.
future prices
At any price above the equilibrium price, such as with a price floor, quantity supplied will be ______ the quantity demanded, resulting in a persistent excess supply or surplus of the product.
greater than
______ resource prices raise production costs and, assuming a fixed product price, ______ profits.
higher; reduce
An increase in demand while holding supply constant results in a(n) ______ in both equilibrium price and quantity.
increase
If producers expect lower prices for their goods or services in the future, they will ______ now, which is illustrated by a shift of the supply curve to the ______.
increase their supply; right
A decrease in supply while holding demand constant results in a(n) ______ in equilibrium price, and a(n) ______ in equilibrium quantity.
increase; decrease
An increase in the sales, property, or any other tax will ______ production costs and ______ supply.
increase; decrease
Greater resource prices _______ the costs of production, thereby, ______ the incentive for firms to produce the good at each price.
increases; reducing
Government subsidies of the production of a good has the effect of ______.
increasing supply
As firms leave an industry, supply decreases. This is illustrated as a shift of the supply curve to the
left
A price ceiling is the maximum legal price a seller may charge for a product or service where a price at or below the ceiling is ______ and a price above the price ceiling is ______.
legal; illegal
If costs of production rise, the producer has an incentive to produce----(one word) output.
less
If the government subsidizes the production of a good, it in effect ______ the producers' costs and ______ supply.
lowers; increases
----- benefit is the additional utility gained from consuming one more unit of a good or service.
marginal
The added cost of producing one more unit of output is called ---cost.
marginal
The demand by a consumer for a good or service essentially reflects the ______ of the good or service, based on the utility received.
marginal benefit
The ongoing supply of a good or service by a producer essentially reflects the ______ of producing the good or service.
marginal cost
The equilibrium price where the quantity demanded equals the quantity supplied is otherwise known as the -----clearing price.
market
On a simple supply model, a change in quantity supplied is illustrated by a ______ and a change in supply is illustrated by a ______.
movement along the supply curve; shift of the supply curve
The determinants of the supply of a good are any factors other than the product's ______ that cause the supply curve of the good to shift.
price
The only factor that causes a movement along the supply curve is:
price
When drawing a supply curve, _____ is labeled on the vertical axis.
price
According to the law of supply, which two things are directly related?
price and quantity supplied
The supply curve illustrates the relationship between ______
price and quantity supplied
The determinant of supply dealing with alternative products that can be produced by firms is called ______.
price of substitutes in production
A change in ______ causes a movement along the supply curve.
product price
The production of a good or service in the least costly way is known as ______ efficiency.
productive
Competition among corn producers forces them to use the best technology and right mix of productive resources; otherwise their costs will be too high relative to the market price and they will be unprofitable. This is best described as ______.
productive efficiency
A change in ______ causes the supply curve of a product to shift leftward or rightward.
resource prices
The prices of the ----(one word) used in the production process help determine the costs of production incurred by firms
resources, or inputs, or input
If an increase in supply is larger than a decrease in demand, the equilibrium quantity will ______.
rise
If the decrease in the supply of a good is greater than the decrease in the demand for the good, the equilibrium price will ______.
rise
If the increase in demand is greater than the decrease in supply, the equilibrium quantity will ______.
rise
When a price ceiling is enacted, the new price is established below the old equilibrium price, quantity demanded ______ and quantity supplied ______ thus creating disequilibrium.
rises; falls
The supply curve measures quantity ______ on the horizontal axis and ______ on the vertical axis.
supplied; price
A change in ---, rather than a change in the quantity supplied, means a change in the schedule or a shift of the supply curve.
supply
A surplus is also known as excess ______.
supply
An increase in--- while holding demand constant, results in a decrease in equilibrium price, but an increase in equilibrium quantity.
supply
Improvements in technology is a determinant of ______.
supply
Producer expectations of future prices are a determinant of --- (one word).
supply
The ______ of a good or service by a producer essentially reflects the marginal cost of producing the good or service.
supply
The number of sellers or competitors in a market is a determinant or shifter of the ---(one word) curve.
supply
The prices of substitute goods in production is a determinant of---
supply
When the number of sellers or producers in an industry increases, ______ of a particular good or service will _____. When the number of sellers in an industry ______, supply of a particular good or service will ______.
supply; rise; decreases; fall
Price floors are invoked when a society feels that ______ sufficient income for resource suppliers or producers.
the free market has not provided
The ability of the competitive forces of supply and demand to establish a price at which selling and buying decisions are consistent is called ______.
the rationing function of prices
Equilibrium price and equilibrium quantity occur where ______.
the supply curve intersects the demand curve
An increase in the number of hair salons will cause:
the supply curve of hair salon services to shift to the right
True or false: A surplus is when quantity supplied exceeds quantity demanded. True false question.
true