Which of these is the most likely to create a surplus of an item?A. a price floorB. a fixed priceC. a price ceilingD. a market price
A. a price floor
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Which of these is the most likely to create a shortage of an item?A. a price floorB. a fixed priceC. a price ceilingD. a market price
C. a price ceiling
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Which of these is the best description of a normal supply curve?A. Its slope is completely horizontal.B. Its slope goes up when the diagram is read from right to left.C. Its slope goes up when the diagram is read from left to righ...
C. Its slope goes up when the diagram is read from left to right.
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Which of these best describes the influence of high prices on the behavior of producers?A. They are an incentive for producers to produce more. B. They are an incentive for producers to buy less. C. They encourage producers to mod...
A. They are an incentive for producers to produce more.
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Which of these tends to force the price of an item upward?A. a surplus of that itemB. a shortage of that itemC. attainment of an equilibrium price for that itemD. attainment of an equilibrium quantity of that item
B. a shortage of that item
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Which of these best describes prices in a market economy?A. a signal for consumers to purchase lessB. a signal for producers to manufacture lessC. a set of compromises between buyers and sellersD. a set of compromises between the...
C. a set of compromises between buyers and sellers
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To estimate elasticity, compare the _________ of a price change to the __________ of the change in total revenueA. amount, amountB. amount, directionC. direction, amountD. direction, direction
D. direction, direction
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What is the relationship between income and demand?A. A decrease in income increases demand.B. A decrease in price decreases income.C. An increase in price increases income.D. An increase in income increases demand.
D. An increase in income increases demand.
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Which of these can be added to determine total costs?A. fixed costs and overheadB. marginal costs and overheadC. fixed costs and variable costsD. fixed costs and marginal costs
C. fixed costs and variable costs
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Labor in a factory is an example of which of these?A. a marginal productB. a diminishing returnC. a fixed factor of productionD. a variable factor of production
D. a variable factor of production
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Which product most likely has a demand that is inelastic?A. a meal at a restaurantB. green beansC. a vital medicineD. a vacation
C. a vital medicine
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Which would an economist consider a likely substitute for coffee?A. waterB. teaC. chickenD. donuts
B. tea
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Which of these describes an effect of increased government regulation on producers?A. It shifts their market supply curve to the right.B. It shifts their market supply curve to the left.C. It prompts them to increase output at all...
B. It shifts their market supply curve to the left.
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Which of these tends to force the price of an item downward?A. a surplus of that itemB. a shortage of that itemC. attainment of an equilibrium price for that itemD. attainment of an equilibrium quantity of that item
A. a surplus of that item
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Which of these describes the effects of price floors on the U.S. sugar industry?A. They helped sugar farmers while increasing the price of sugar for the consumer.B. They helped sugar farmers while decreasing the price of sugar for...
A. They helped sugar farmers while increasing the price of sugar for the consumer.
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What is the main cause of a change in quantity demanded?A. substitutionB. changes in revenueC. change in priceD. the income effect
