EC101 Quiz 1,2,3 Answers
Which of the following is not part of an economy's financial markets?
Political action committees
After Hurricane Katrina, the supply curve for gasoline
shifted to the left.
In a movement along the demand curve, the demand schedule
stays the same, but the price changes.
The graph pictured above is most likely a
supply curve, because it is upward-sloping.
In a centrally planned economy, decisions are made by
top-level government officials.
Supply curves are generally
upward-sloping.
Closed economies generally do __________ open economies, in the __________ run.
worse than; long
Price per YardQuantity Supplied$15?$25 20 Refer to the table, which shows part of the weekly supply schedule for fall leaf-raking in a certain neighborhood. According to the laws of economics, which of the following could be the missing number?
10
What phrase do economists use to describe the assumption that everything else about a situation stays the same, allowing only one variable, such as price, to change?
Ceteris paribus
Which of the following goods is not an example of a good that carries an advance purchase discount?
Refrigerated milk
The market price can sometimes be difficult to identify due to which of the following?
Sale prices and negotiated prices
Which of the following is not an example of a good or service provided by a market?
The air we breathe
Which of the following is not a monetary measure of economic prosperity?
Life expectancy
With inferior goods, demand will increase with an increase in income.
false
Natural resources, such as crude oil and fish, are often sold in ________ markets.
global
The demand curve is the graphical counterpart to the
demand schedule.
Global markets consist of buyers and sellers
anywhere in the world.
In 2018, the gross domestic product of the United States was
$20.5 trillion.
In what way does the government impact the U.S. housing market?
By setting zoning rules and construction codes
In recent years, the demand curve for IT workers has moved to the right. What does this mean?
At any price, the quantity demanded is now higher.
Why do individuals and businesses have to make decisions?
Because resources are scarce
Who competes with whom in a market?
Buyers compete with other buyers and sellers compete with other sellers.
What will happen as a result of a decrease in demand?
Equilibrium price and quantity both fall.
By total economic output (gross domestic product), the United States ranks as the __________ largest economy in the world.
First
Economic competition sometimes has which of the following negative effects on a domestic economy?
It drives down wages and profits.
Financial markets do not include which of the following?
Nonprofit organizations
What might happen if the market price for haircuts increased?
Some hair salons might hire more stylists.
Which is not an example of government intervention in the economy?
The Great Recession
The textbook says that which of the following is among the key forces shaping today's economy?
The evolution of financial markets
Based on the law of demand, what would you expect to happen if the price of gasoline were to rise to $8.00 per gallon?
The quantity demanded would decrease.
Which of the following is not a good indicator of prosperity?
The size of the safety net
What caused the decline in demand for red delicious apples?
The taste of the apples
Hurricane Katrina caused refineries and oil rigs in New Orleans and in the Gulf of Mexico to close down. In the market for gasoline, Hurricane Katrina caused
a decrease in supply
Stricter loan standards in the mortgage lending sector could cause
a demand shift to the left in the housing market.
Ceteris paribus, when used by economists, means
all other things equal.
PriceQuantity DemandedQuantity Supplied$02000$115040$210080$350120$40160 Refer to the table. If the current price in this market is $3, then there is
excess supply and pressure on the price to fall.
In a market, buyers and sellers
exchange goods and services for money.
If the supply of a good increases, the equilibrium price of that good
falls while quantity demanded rises.
If the interest rates on new car loans increase, the quantity of new cars supplied will
decrease.
When a demand curve shifts to the right
demand has increased, so equilibrium price increases, and equilibrium quantity increases.
Suppose the government decides to eliminate some, but not all, of the rules that govern how investment banks conduct their business. This would be an example of
deregulation.
The law of demand suggests that most demand curves will be
downward-sloping.
On the basic supply-demand graph, the point at which the demand curve and the supply curve intersect is located at
equilibrium price and equilibrium quantity.
The price at which the quantity supplied equals quantity demanded is the
equilibrium price.
The law of supply says that higher prices tend to ________ the quantity of a good or service ________, assuming no other changes.
increase; supplied
PriceQuantity DemandedQuantity Supplied$02000$115040$210080$350120$40160 Refer to the table. In this market, the equilibrium price
is between $2 and $3.
Inferior goods are characterized by ________ demand as a result of increased income.
lower
Gross domestic product is
one of many indicators of prosperity, some of which are monetary and some of which are not.
Market equilibrium is the point where quantity supplied and ________ are equal.
quantity demanded
The average sale price of single-family homes in the United States increased from $264,700 to $306,100 from April 2015 to April 2019. All else equal, we would expect that during the same time
quantity supplied also increased
The supply schedule is a description of the
relationship between quantity supplied and market price.
If a new major oil field is discovered in Africa, the world ________ curve for oil would shift to the ________.
supply; right
Sale prices mean that a good's price is
temporarily reduced.
Most markets, if left alone, will tend toward
the equilibrium price.
Demand is inelastic if
the quantity demanded does not change very much even if the price changes dramatically.
The market price is
the typical price at which a good or service sells.
The market price is the typical price at which a good or service sells.
true
The gross domestic product is calculated by adding up the
value of all goods and services produced within the nation.
A laissez-faire economy has
very little government regulation of the economy.