Economics review
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Economics Review. Chapter 4-7. When the government sets a maximum price that sellers may charge for a product , this is an example of what?. price ceiling price floor price adjustment. You have recently received a raise at work, which of the following factors would this change ?.

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Economics Review

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Economics review

Economics Review

Chapter 4-7


Economics review

When the government sets a maximum price that sellers may charge for a product, this is an example of what?

  • price ceiling

  • price floor

  • price adjustment


You have recently received a raise at work which of the following factors would this change

You have recently received a raise at work, which of the following factors would this change?

  • market size

  • consumer taste

  • income


The law of demand states that

The law of demand states that:

  • consumers will demand more at low prices and less at high prices

  • consumers will demand more at low prices and more at high prices

  • consumers will provide less at low prices and more at high prices


Economics review

You decide to eat a candy bar, and then you decide to eat a secondbut it doesn’t taste as good. Which economic law are you experiencing?

  • substitution effect

  • elasticity

  • diminishing marginal utility


Why are gas and salt considered demand inelastic

Why are gas and salt considered demand inelastic?

  • there are no substitutes

  • law of marginal utility

  • they are complementary goods


Which of the following is an example of a shortage

Which of the following is an example of a shortage?

  • quantity supplied is greater than quantity demanded

  • quantity supplied is less than quantity demanded

  • quantity supplied is equal to quantity demanded


If the price of pepsi increases and you purchase kool aid instead this is an example of

If the price of Pepsi increases, and you purchase Kool-Aid instead, this is an example of?

  • consumer expectations

  • variable costs

  • substitute goods


If you purchase an item that is considered demand elastic what does that mean

If you purchase an item that is considered demand elastic, what does that mean?

  • quantity demanded is equal to quantity supplied

  • quantity demanded changes significantly as price changes

  • quantity demanded changes very little as price changes


Which of the following companies best illustrates a monopoly

Which of the following companies best illustrates a monopoly?

  • Wal-Mart

  • Exxon-Mobile

  • DeBeersDiamonds


The law of supply states that

The law of supply states that:

  • Businesses will provide more products at higher prices and fewer at lower prices

  • Businesses will provide fewer products at higher prices and more at lower prices

  • Consumers will purchase fewer products when they must buy them at higher prices


Economics review

Economists predict that Madison County will reach a population of 90 thousand by 2015. Which demand factor would this influence?

  • income

  • market size

  • consumer taste


Having a worker work on a particular aspect of production is an example of

Having a worker work on a particular aspect of production is an example of?

  • specialization

  • increasing returns

  • diminishing returns


Which of the following is not a factor in the costs of production

Which of the following is not a factor in the “Costs of Production”?

  • specialization

  • increasing returns

  • diminishing returns

  • government action


Which of the following statements best explains the concept of a monopoly

Which of the following statements best explains the concept of a monopoly?

  • There is only one seller of a product that has several substitutes

  • There is more than one seller of a product that has no close substitute

  • There is only one seller of a product that has no close substitute


Economics review

Fixed costs occur no matter how much a company produces, which of the following would be an example of this?

  • cost of materials

  • shipping

  • mortgages on buildings


Economics review

If you were to hire more workers and they cause more total output, which of the following is this an example of?

  • increasing returns

  • diminishing returns

  • marginal utility


Economics review

When a sports team limits rivals from creating a team in their general area is an example of what type of monopoly?

  • government

  • technological

  • geographical


Economics review

If the government does not want consumers to produce or consume a good, what can they implement to discourage usage?

  • IRA

  • subsidy

  • excise tax


Economics review

If you hire too many workers and it causes your production to decrease, which of the following is this an example of?

  • increasing returns

  • diminishing returns

  • shipping


Economics review

You manufacture cereal that uses raisins, unfortunately the price of raisins increases dramatically, which of the following factors will change supply?

  • input costs

  • labor productivity

  • producer expectation


The usage of robots to manufacture automobiles is an example of what

The usage of robots to manufacture automobiles is an example of what?

  • input costs

  • labor productivity

  • technology


Economics review

The type of clothes that you purchased three years ago are no longer popular and in demand, why is that?

  • market size

  • consumer tastes

  • consumer expectation


Economics review

When the government pays for part of the cost of a good or service to encourage production and consumption, this is an example of?

  • IRA

  • subsidy

  • excise tax


When a business lowers their prices below rival businesses prices this is an example of

When a business lowers their prices below rival businesses prices, this is an example of?

  • input costs

  • market size

  • competitive pricing


Economics review

What is it called when the government pays for part of the cost of a good or service to encourage production and consumption of a good or service?

  • revenue

  • subsidy

  • excise


Which of the following scenarios would justify government rationing

Which of the following scenarios would justify government rationing?

  • nation at war

  • flood in the Midwest

  • drought in the deep south


When does the market experience equilibrium

When does the market experience equilibrium?

  • when quantity demanded is more than quantity supplied

  • when quantity demanded is less than quantity supplied

  • when quantity demanded is equal to quantity supplied


Which of the following is an example of a surplus

Which of the following is an example of a surplus?

  • quantity supplied is greater than quantity demanded

  • quantity supplied is less than quantity demanded

  • quantity supplied is equal to quantity demanded


Who benefits the most from a surplus

Who benefits the most from a surplus?

  • producers

  • suppliers

  • customers


When the government sets a price floor what occurs

When the government sets a price floor, what occurs?

  • shortage occurs because it is set below equilibrium price

  • shortage occurs because it is set above equilibrium price

  • surplus occurs because it is set above equilibrium price


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