Unit Test Review Microeconomics – Flashcards
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Which statements correctly explain price floors and price ceilings? Check all that apply.
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3-Price floors help producers by raising prices.
4-Price ceilings help consumers by lowering prices.
5-Effective price floors are set above equilibrium.
6-Effective price ceilings are set below equilibrium.
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Which statement best explains the role of producers in economics?
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A.
Producers supply goods and services.
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If supply for a product is low but demand is high, what most likely needs to happen to achieve equilibrium?
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C. The supply needs to be raised.
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In which way do producers try to differentiate themselves in monopolistic competition?
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C. product features
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A possible result of disequilibrium is
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A. excess demand.
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The highest amount a landlord can charge for rent is an example of
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C. a price ceiling.
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What most likely will happen if the pie maker bakes a seventh pie?
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B.
The marginal cost will most likely increase to $2.00
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What most likely will happen if the pie maker continues to make additional pies?
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A. The marginal costs will continue to rise, increasing the total cost, while the marginal revenue remains the same, decreasing the profit.
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Look at the chart comparing the price of graphic T-shirts to the quantity supplied.
This chart is an example of a
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D. supply schedule.
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Which quality best describes a producer with an absolute advantage?
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A. efficient
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Motherboards, Inc., manufactures computer parts. The company's total revenue is
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D. the amount the company receives from the sale of all of its computer parts.
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According to the graph, the marginal cost begins to increase when the producer makes
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C. four pies.
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Excess supply is created when price or move away from the equilibrium point.
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quantity
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Which food truck has the absolute advantage?
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D. Lunch on the Go
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Equilibrium occurs when supply and demand coordinate to
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B. set prices and production.
