Eco Quiz 2A (Modules 5,6,7) (Week 2)
Two goods are complements when a decrease in the price of one good
----NOT decreases the demand for the other good ---NOT decreases the quantity demanded of the other good ---NOT increases the quantity demanded of the other good.
If suppliers expect the price of their product to fall in the future, then they will
----NOT increase supply in the future but not now.
In a market economy, supply and demand are important because they
---NOT can be used to predict the impact on the economy of various events and policies. ---NOT play a critical role in the allocation of the economy's scarce resources.
If goods A and B are complements, then an increase in the price of good A will result in
---NOT more of good A being sold
Which of the following is not a characteristic of a perfectly competitive market?
All of the above are characteristics of a perfectly competitive market.
Which of the following statements is correct?
Buyers determine demand, and sellers determine supply.
In a competitive market, the price of a product
None of the above is correct.
The shift from D to D' is called
a decrease in demand
In a competitive market, the quantity of a product produced and the price of the product are determined by
both buyers and sellers
In a market economy, supply and demand determine
both the quantity of each good produced and the price at which it is sold
If a seller in a competitive market chooses to charge more than the going price, then
buyers will make purchases from other sellers.
Which of the following is the least likely to be a competitive market?
cable TV
An improvement in production technology will:
decrease a firm's costs and increase its supply.-? ----NOT increase a firm's cost and increase it's supply
A leftward shift of a demand curve is called a(n)
decrease in demand
An increase in the price of a good will
decrease in quantity demanded-? ----NOT increase demand. ----NOT increase supply
A decrease in the price of a good will
decrease in quantity supplied increase quantity demanded
The shift from S to S' in the market for peaches could be caused by a(n)
decrease in the labor costs of the workers who pick peaches
Good X and good Y are substitutes. If the price of good Y increases, then the
demand for good X will increase.
Soup is an inferior good if the demand
for soup falls when income rises.
Most markets in the economy are
highly competitive
For a competitive market,
if a seller charges more than the going price, buyers will go elsewhere to make their purchases.
A rightward shift of a demand curve is called a(n)
increase in demand
A movement upward and to the right along a supply curve is called a(n)
increase in quantity supplied
A movement upward and to the right along a supply curve is called a(n)
increase in quantity supplied.
Refer to Figure 4-13. The shift from S to S' is called a(n)
increase in supply.
A downward-sloping demand curve illustrates
law of demand
A decrease in supply is represented by a
leftward shift of a supply curve.
A group of buyers and sellers of a particular good or service is called a(n)
market
An increase in quantity supplied
moresults in a movement upward and to the right along a fixed supply curve
In a competitive market, each seller has limited control over the price of his product because
other sellers are offering similar products
Buyers and sellers who have no influence on market price are referred to as
price takers.
Decrease in quantity supplied
results in a movement downward and to the left along a fixed supply curve.--? ---NOT results in a movement upward and to the right along a fixed supply curve.
A decrease in quantity demanded
results in a movement upward and to the left along a demand curve.
decrease in quantity demanded
results in a movement upward and to the left along a demand curve. ----NOT results in a movement downward and to the right along a demand curve
An increase in supply is represented by a
rightward shift of a supply curve.
A monopoly is a market with one
seller, and that seller sets the price
The quantity supplied of a good is the amount that
sellers are willing and able to sell
The forces that make market economies work are
supply and demand
In a market economy,
supply and demand determine prices and prices, in turn, allocate the economy's scarce resources.
If the number of sellers in a market increases, then the
supply in that market will increase
Assume the market for pork is perfectly competitive. When one pork buyer exits the market,
the price of pork does not change.
Assume the market for tennis balls is perfectly competitive. When one tennis ball producer exits the market,
the price of tennis balls does not change
The quantity demanded of a good is the amount that buyers are
willing and able to purchase