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Questions and Answers
What is the result of a minimum price fixed above the equilibrium price in an agricultural market?
What is the result of a minimum price fixed above the equilibrium price in an agricultural market?
- Increase in the demand for the product
- Surplus in the market (correct)
- No change in the market equilibrium
- Shortage in the market
In a free-market economy, what is one of the advantages?
In a free-market economy, what is one of the advantages?
- State ownership of businesses
- Reduction in consumer prices
- Incentives to be efficient (correct)
- Monopolistic practices
What is one of the problems of a free-market economy?
What is one of the problems of a free-market economy?
- Reduced environmental pollution
- High unemployment
- Lack of government intervention
- Increased inequality (correct)
What is a type of intervention in a mixed economy?
What is a type of intervention in a mixed economy?
What is the name of the economy that combines elements of free-market and government intervention?
What is the name of the economy that combines elements of free-market and government intervention?
What is the purpose of a price ceiling?
What is the purpose of a price ceiling?
What happens to the demand curve when there is an increase in consumer income if the good is normal?
What happens to the demand curve when there is an increase in consumer income if the good is normal?
What is the effect of a minimum wage on the labor market?
What is the effect of a minimum wage on the labor market?
What is the result of a market equilibrium?
What is the result of a market equilibrium?
What is the difference between a movement along a supply curve and a shift of the supply curve?
What is the difference between a movement along a supply curve and a shift of the supply curve?
What is the purpose of a price floor?
What is the purpose of a price floor?
What happens to the quantity supplied when the price of a good increases, according to the law of supply?
What happens to the quantity supplied when the price of a good increases, according to the law of supply?
What is the term for the study of the change in competitive equilibrium when one of the variables affecting demand or supply changes?
What is the term for the study of the change in competitive equilibrium when one of the variables affecting demand or supply changes?
What is the result of an increase in supply?
What is the result of an increase in supply?
What is the term for the point at which the quantity supplied equals the quantity demanded?
What is the term for the point at which the quantity supplied equals the quantity demanded?
What is the purpose of the price mechanism in a free market?
What is the purpose of the price mechanism in a free market?
What happens to the price in a free market when there is a surplus?
What happens to the price in a free market when there is a surplus?
What is the term for a situation in which the quantity supplied is greater than the quantity demanded?
What is the term for a situation in which the quantity supplied is greater than the quantity demanded?
What happens to the price in a free market when there is a shortage?
What happens to the price in a free market when there is a shortage?
What is the graph that shows the relationship between the price of a good and the quantity supplied?
What is the graph that shows the relationship between the price of a good and the quantity supplied?
What is the term for a change in the quantity supplied in response to a change in price?
What is the term for a change in the quantity supplied in response to a change in price?
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