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econ > unit 2 test > Flashcards

unit 2 test Flashcards

1
Q

A system of allocating scarce goods and services using some criteria other than price?

A

rationing

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2
Q

Why did Communist governments use a command economic system for many years?

A

in an attempt to create a society in which everyone was equal

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3
Q

A sudden lack of goods

A

supply shock

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4
Q

When quantity supplied is more than quantity demanded

A

excess supply

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5
Q

The price ceiling that was used to control the price of housing in NYC and other cities was called

A

rent control

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6
Q

The point at which quantity supplied and quantity demanded are the same

A

equilibrium

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7
Q

What is the name of the least amount that legally may be paid to most workers for an hour of work?

A

minimum wage

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8
Q

What happens to a market in equilibrium when there is an increase in supply?

A

quantity supplied will exceed quantity demanded, so the price will drop

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9
Q

What happens when the supply of a nonperishable good is greater than what consumers want to buy?

A

either the good remains unsold or the price drops

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10
Q

Situation in which quantity demanded is greater than quantity supplied

A

Shortage

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11
Q

A minimum price for a good or service

A

price floor

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12
Q

When quantity supplied and quantity demanded are not the same in a market?

A

disequilibrium

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13
Q

When quantity demanded is more than quantity supplied?

A

excess demand

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14
Q

On what type of goods do governments generally place price ceilings?

A

those that are essential but too expensive for some people

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15
Q

What happens when wages are set by law above the equilibrium level?

A

Firms employ fewer workers than they would at the equilibrium wage

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16
Q

When buyers will purchase exactly as much a suppliers are willing to sell, what condition has the market reached?

A

equilibrium

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17
Q

What are inferior goods?

A

goods for which the demand falls when income rises

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18
Q

What kind of system is the US economy based on?

A

Market

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19
Q

Ceteris Paribus, or “all things held constant” is an assumption that has which of the following effects on a demand schedule?

A

it takes only prices into account

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20
Q

What does it mean when the demand for a product is in elastic?

A

the price has no affect on demand

21
Q

What factor has the greatest influence on elasticity and inelasticity of supply?

A

time

22
Q

What does unitary elastic mean?

A

the percentage change in quantity demanded is exactly equal to the percentage change in price

23
Q

How does a company arrange to sell its products to people who are unwilling to pay the top price for them?

A

by charging different prices according to the group to which the buyer belongs

24
Q

How is current demand related to future price?

A

if the price is expected to drop, current demand will fall

25
Q

Which of the following is a situation that makes the market believe inefficiently?

A

when consumers do not have enough info to make good choices

26
Q

How is the future price related to the current demand

A

if price is expected to rise, current demand will rise

27
Q

what determines how a change in prices will affect the total revenue for a company?

A

elasticity of demand

28
Q

What is a basic principle of the law of demand?

A

when a goods price is lower, people will buy more of it

29
Q

when the selling price of a good goes up, what is the relationship to the quantity supplied?

A

it becomes practical to produce more goods

30
Q

Which of the following is NOT a form of nonprice competition?

A

discounts

31
Q

which of the following is an example of a good with an inelastic supply?

A

apples

32
Q

Which of the following is a good that might not be bought when prices rise?

A

luxury

33
Q

What do sellers do if they expect the price of goods they have for sale to increase dramatically in near future?

A

store the goods until the price rises

34
Q

Which of the following receives government subsidies that are in place to protect the population rather than for economic reasons?

A

small farmers in France

35
Q

A shift in the demand curve means which of the following?

A

a decrease in both price and quantity demanded

36
Q

What shows the quantities of products demanded at each price by all consumers in a market?

A

a market demand schedule

37
Q

How did the existence of the baby boom generation change demand in the united states?

A

Demand was raised for different goods with each age the baby boomers reached

38
Q

What kind of changes would be expected in demand of a country that has an increasing population?

A

a rise in demand for shelter

39
Q

A good that replaces another demanded good

A

substitute

40
Q

When prices rise, what happens to income?

A

it buys less

41
Q

A graphic representation of the quantities of a good that will be bought at each price?

A

demand curve

42
Q

The change in consumption resulting from a change in real income

A

income effect

43
Q

what kind of tables lists the quantity of a good that an individual person will buy at different prices?

A

demand schedule

44
Q

when a consumer is able and willing to buy a good or service s/he creates

A

demand

45
Q

What determines the price and the quantity produced of most goods?

A

interaction of supply and demand

46
Q

Demand for movie rentals is highly elastic. A video store that raises the price of a rental will

A

gain/lose revenue

47
Q

What is the effect of import restrictions on prices?

A

rise in price

48
Q

Which of these are most likely to lead to black market?

A

Rationing

49
Q

In response to rising car traffic….

A

a rise in price for bicycles

econ (5 decks)

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