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Demand And Supply Analysis Quiz 2 (30 MCQs)

Quiz Instructions

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1. Downward movement along the same demand curve is known as
2. What is a Profit?
3. Parallel shifting of original demand curve is called as
4. The government finally removes a massive excise tax on a popular product, after an election changed the party in power. How will this affect the market price and quantity for that product?
5. Law of demand is .....
6. Consumers will purchase beef if the price of pork increases. Economists would say these two goods are
7. Everything else held constant, a balanced budget increase in government spending (that is, an increase in government spending that is matched by an identical increase in net taxes) will
8. Everything else held constant, an autonomous monetary policy easing ..... aggregate .....
9. A change in government subsidies.
10. The amount of goods or services available is called?
11. What happens if the price in the market is higher than the equilibrium price?
12. Demand curve remain the same, Only shift in equilibrium point due to change in prices is known as
13. What is the term for a situation of excess supply or excess demand?
14. Who is a Producer?
15. A brand new machine cooks, cleans, and never messes up a fast food order. This means we can sell more fast food than ever before, leading to producers cutting cost of fast food. Which supply factor does this most likely relate to?
16. What is the effect of an improvement in technology on the cost of producing cars?
17. A profit maximum is least likely to occur when:
18. When quantity demanded of a commodity changes due to a change in its price, keeping other factors constant is known as
19. What is the function of price in resource allocation?
20. In an attempt to appease the Wagon Wheel Manufacturer's lobby, that is concerned about declining sales and thus declining profits, the government imposes a price floor above the equilibrium price for wagon wheels, prohibiting retailers from selling them at prices below the floor. How will this policy likely impact the market for wagon wheels?
21. What happens to equilibrium price and quantity when both demand and supply curves shift to the right?
22. Suppose the economy is producing at the natural rate of output and the government passes legislation that severely restricts a company's ability to reduce production costs via outsourcing. Everything else held constant, this policy action will cause ..... in the unemployment rate in the short run and ..... in inflation in the short run.
23. Is this True or FalsePrice high O Supply high
24. A product that had been popular is rapidly becoming less popular, as consumer tastes begin to change. How will this affect the market price and quantity for that product?
25. When quantity demanded of a commodity changes due to a change in other factors keeping price constant is known as
26. A permanent negative supply shock leads to ..... output .....
27. A change in the price of complimentary goods.
28. Situation created when the quantity supplied is greater than the quantity demanded.
29. The demand of a product depends on four factors.
30. A change in the cost of inputs.
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