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Demand And Supply Analysis Quiz 3 (30 MCQs)

Quiz Instructions

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1. A major natural disaster occurs.
2. The amount a producer spends on producing a good or service is the .....
3. What is the meaning of market equilibrium?
4. Assuming the economy is starting at the natural rate of output and everything else held constant, the effect of ..... in aggregate ..... is a rise in both inflation and output in the short-run, but in the long-run the only effect is a rise in inflation.
5. What is the effect of an increase in incomes on the demand for cars?
6. A change in consumer tastes and preferences.
7. Which of the following is not true about AD in a two-sector economy?
8. An individual's demand for onions is given by the following equation:$Q_o^d=3-0.05P_o+0.009I-0.16P_t$ $Q_o^d$ $P_o$ $I$ $P_t$
9. The government has put a ban on all items that are unhealthy. No store can legally sell soda over 24 ounces. The supply of anything over 24 ounces becomes non-existent. What supply factor is this?
10. The quantity of a good or service that producers are able and willing to offer for sale at a specified price in a given period of time is
11. When the selling price is less than the cost, the producer goes in a .....
12. State True or FalsePrice low X Demand high
13. Everything else held constant, when output is ..... the natural rate level, wages will begin to ....., increasing short-run aggregate supply
14. Producers usually price their products .....
15. The minimum price that can be charged for a good or service.
16. The price of coffee beans decreases significantly. How will this impact the supply side of the market for coffee beans?
17. Suppose the economy is producing below the natural rate of output and the government is suffering from large budget deficits. To deal with the deficit problem, suppose the government takes a policy action to reduce the size of the deficits. This policy action will cause ..... in the unemployment rate in the short run and ..... in inflation in the short run, everything else held constant.
18. The production relationship between the number of machine hours and totalproduct for a company is presented below.Diminishing marginal returns first occur beyond machine hour:
19. If the price elasticity coefficient of the demand curve for paper clips is equal to-1, demand is:
20. The expectations-augmented Phillips curve implies that as expected inflation increases, nominal wages ..... to prevent real wages from .....
21. Situation created when the quantity supplied is less than the quantity demanded.
22. Nature of demand curve is .....
23. State True or FalsePrice low X Demand medium
24. The willingness and ability to sell something in a given time period.
25. A company is experiencing economies of scale when:
26. What is the relationship between different markets where one product complements another?
27. What happens when there is a decrease in supply of a product?
28. The maximum price that can be charged for a good or service.
29. In the long run, following a combination of a negative demand shock and a temporary negative supply shock,
30. A change in producer expectations.
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