chapter 4 assignment quiz macro economics – Flashcards
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If supply increases and demand remains unchanged, equilibrium quantity will _______ and equilibrium price will ______________.
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rise; fall
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When the price is $5
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quantity supplied is greater than quantity demanded and, therefore, price must fall to get to equilibrium.
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When quantity supplied equals quantity demanded,
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the market is cleared
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Which of the following government programs will create a shortage? Support prices. Ceiling prices. None of these choices will create a shortage. Sales tax.
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ceiling prices
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For there to be demand for a good, people must
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be willing and able to buy the good at the market price
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If the price ceiling is set above the equilibrium price,
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quantity demanded will equal quantity supplied.
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Which statement is true?
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Usury laws and rent control are price ceilings.
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Which of the following government programs will NOT create a surplus?
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usury laws
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Usury laws are associated with
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interest
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When price is $8
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quantity supplied is greater than quantity demanded and, therefore, price must fall to get to equilibrium price.
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In the graph shown above, at a price of $3.00
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there is a shortage
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Black markets emerge during times of
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price ceilings
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When the supply of a good increases and the demand stays the same
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the price of the good will fall and quantity will rise.
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As price rises, the quantity ______________ rises.
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supplied
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At equilibrium, each of these is true EXCEPT
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there may be a shortage or a surplus.
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If the government set a price ceiling of 50 cents for a gallon of gasoline, the most likely consequence would be
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a shortage of gasoline
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If the government set a price ceiling of 25 cents for a loaf of bread, the most likely consequence would be
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a shortage of bread
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An increase in the supply of loanable funds will ___________ interest rates.
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lower
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As price rises, quantity demanded
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falls
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The forces of demand and supply ensure that at equilibrium
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there are no shortages or surpluses
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In the graph shown above, equilibrium price is _______.
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30
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The price of $4 in the graph above represents
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price ceiling
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The relationship between quantity supplied and price is __________ and the relationship between quantity demanded and price is ____________.
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direct; inverse
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An increase in equilibrium quantity will result from each of the following except
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a decrease in demand and a decrease in supply.
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If the government set a price ceiling at $8
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the price floor would not have any effect on this market.
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question 125 equilibrium price is
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$6
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if market price is above equilibrium price
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quantity supplied is greater than quantity demanded
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mc question 84 a shift from d1 to d2 causes equilibrium price to ____ and quantity to _______
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rise;rise
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which situation below would represent a shortage in the oil market?
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market price $75.00 per barrel; equilibrium price $81.00 per barrel
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QU 130 if the government set a price floor at $8.00
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there would be a permanent surplus, at least until the price floor was lifted
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most economists feel that price ceilings
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do more harm than good
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as price rises, the quantity _____ rises
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supplied
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an increase in demand occurs when
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the demand curve shifts upward and to the right
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QU 123 in the graph shown above, if the government set a price ceiling of $18
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there would be a permanent shortage, at least until the price ceiling was lifted
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QU 89 if the quantities in the demand schedule in the table above were reduced by 2 units at each price, you would conclude that
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demand decreased
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when quantity demanded is greater than quantity supplied
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price will rise to its equilibrium price
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if the equilibrium price of an hour with a personal trainer is $45 and the market price is currently $55, then there is
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a surplus of personal trainers
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the adjustment of the ____ is the rationing mechanism in market economies
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price
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The US price system is _____ by both price ceilings and price floors
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affected
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according to the law of demand, the
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quantity demanded depends on the quantity supplied
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In general demand curves slope ____ and supply curves slope____
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downward to the right, upward to the right
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QU 109
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ceiling; shortage; 14
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a decrease in equilibrium quantity would result from
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both a decrease in supply with no change in demand and a decrease in demand with no change in supply
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QU 8
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a surplus
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If the government legislates a price ceiling that is above the equilibrium price
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market price and quantity sold will be unaffected.
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The __________ is the price of money (loanable funds).
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interest rate
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When market price is above equilibrium price
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quantity supplied is greater than quantity demanded.
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According to the law of demand, the
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quantity demanded of a good is negatively related to its price.
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Without government involvement, wages and interest rates are set by _______________.
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supply and demand
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"The higher the price of a good or service, the greater the quantity that people are willing to sell" is
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the law of supply
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If quantity demanded is greater at each price, we say that there has been
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an increase in demand
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When supply increases
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price decreases because a excess supply at the original price.
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MC Qu. 19 When demand falls and supply remains the same, equilibrium price _______ and equilibrium quantity ________. rises; falls
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falls; falls
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Demand is defined as
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the quantities that buyers will purchase at different prices.
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QU 131
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The price floor would not have any effect on this market
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Which of the following government programs will create a surplus?
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minimum wage law
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QU 147
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ceiling; shortage; 12
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the law of demand
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stated that price and quantity demanded are inversely related
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rent control is a form of price ___ and is responsible for housing ____
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ceiling; shortages
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as price declines, quantity supplied
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falls
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QU 90
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quantity demanded is greater than quantity supplied and, therefore price must rise to get to equilibrium
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QU 58
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remain at 80cents
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price ceilings keep market price
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below the equilibrium price and create shortages
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QU 83
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an increase in demand
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when the supply of a good increases and the demand stays the same
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the price of the good will fall and the quantity will rise
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QU 29
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all of these are true at equilibrium
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QU 85
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a decrease in supply
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QU 127
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there is a shortage
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if demand rises and supply remains the same, equilibrium price will _____ and equilibrium quantity will ______
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rise; rise
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QU 86
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rise; fall
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when there is a price floor there will be
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surplus
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if the government legislates a price ceiling that is above the equilibrium price
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market price and quantity sold will be unaffected
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if the price system is allowed to function without interference and a surplus occurs, quantity demanded will ______ and quantity supplied will ________ until the price falls to its equilibrium
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rise; fall
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which statement is true
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usury laws and rent control are price ceilings
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if market price is above equilibrium price
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quantity supplied is greater than quantity demanded
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which statement is false
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moving up a demand curve, price rises and quantity rises
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MC Qu. 65 Which statement is true?
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minimum wage is a price floor
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If supply increases and demand remains unchanged, equilibrium quantity will _______ and equilibrium price will ______________.
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rise; fall
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QU 140 If the government set a price floor at $24
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there would be a permanent surplus, at least until the price floor was lifted.
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The demand curve shows the relationship between
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price and quantity demanded.
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MC Qu. 52 If a price ceiling is set above the equilibrium price, then
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prices will remain the same (not rise) when the price ceiling is lifted.
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MC Qu. 4 A decrease in demand means that quantity demanded falls
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at all prices.
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What happens to quantity demanded when price is lowered?
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It rises
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MC Qu. 102 When a price ceiling which had been set below equilibrium price is removed, what happens next? price rises. quantity demanded falls. all of the choices. quantity supplied rises.
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all of the choices
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As price rises, quantity demanded
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falls
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The demand curve slopes
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downward towards the right
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An increase in equilibrium quantity will result from each of the following except
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a decrease in demand and a decrease in supply.
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When the demand for loanable funds rises, the amount of money borrowed will ___________.
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rise
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When a price floor that has an impact is removed, which of the following statements is correct?
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Quantity supplied for that good decreases.
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__________________ states that price and quantity demanded are inversely related
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the law of demand
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When the demand for a product decreases but the supply of the product remains unchanged,
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the price of the product will fall and the quantity will fall.
