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If a subsidy is provided for the production of good X, this will shift the:
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supply curve for X to the right.
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Use the following graph for the market for beef to answer the question below.Refer to the graph, which shows that the demand for beef shifted from D1 and D2. The change in equilibrium from E1 to E2 is most likely to result from a(n)
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increase in the cost of cattle feed.
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An increase in the demand for washing machines might be caused by
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an expected increase in the price of washing machines.
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When economists describe "a market," they mean a
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system that allows buyers and sellers to interact with one another.
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The role of the entrepreneur in society is to
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bring the factors of production together and take the risks of producing.
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Use the following graph for a competitive market to answer the question below: A price ceiling of $10 per unit will result in a
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shortage of 200 units.
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Use the figure below to answer the following question.Refer to the three demand curves. A "decrease in demand" would be illustrated as a change from
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line A to C.
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An "increase in the quantity supplied" suggests a
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movement up along the supply curve.
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Use the following diagram for the corn market to answer the question below. If the price in this market is at $4 per bushel, then there will be a
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surplus and the price will tend to rise.
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A higher price reduces the quantity demanded for a product because
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individuals can afford less of the product and will switch to substitutes.
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Which of the following is the best synonym for "marginal" in economics?
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additional
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There is an excess demand in a market for a product when:
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the current price is lower than the equilibrium price.
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In the circular flow model, households earn their incomes in the
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resource markets.
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Use the following graph of the demand to answer the question below.Refer to the above diagram of three demand curves for steak. Which of the following would cause a shift in steak demand from D1 to D3 if steak is a normal good?
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a decrease in consumer incomes
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In understanding and analyzing "demand," we focus on how much of a product the buyers are
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willing and able to buy.
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A government will create a surplus in a market when it sets a price
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floor above the equilibrium price.
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If a tax is placed on the production of good X, this will shift the
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supply curve for X to the left.
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Steve went to his favorite hamburger restaurant with $3, expecting to buy a $2 hamburger and a $1 soda. When he arrived he discovered that hamburgers were on sale for $1 each, so Steve bought two hamburgers and a soda. Steve's response to the decrease in the price of hamburgers is best explained by
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the income effect.
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Which of the following will cause a decrease in market equilibrium price and an increase in equilibrium quantity?
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An increase in supply.
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In analyzing human decision and action, economists assume that
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people's behavior reflects rational self-interest.
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When the price of Nike soccer balls fell, Ronaldo purchased more Nike soccer balls and fewer Adidas soccer balls. Which of the following best explains Ronaldo's decision to buy more Nike soccer balls?
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The substitution effect.
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Use the following circular flow diagram to answer the question below.If box A represents businesses or firms, B the resource market, and C households, and if flow (7) represents goods and services, then flow (6) would represent
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consumption expenditures
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Use the figure below to answer the following question. A decrease in supply is depicted by a
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shift from S2 to S1.
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In order to derive the market supply curve from individual supply curves, we add up the
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various quantities that individual sellers want to sell at specific price levels.
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