Podcast
Questions and Answers
Which factor describes the change in quantity demanded due to a change in price?
Which factor describes the change in quantity demanded due to a change in price?
- Complementary goods
- Substitutes
- Change in income
- Excess demand (correct)
What happens when both supply and demand move in the same direction?
What happens when both supply and demand move in the same direction?
- Market equilibrium is reached
- Predictions about price can be made but not about quantity
- Excess supply occurs
- Predictions about quantity can be made but not about price (correct)
Which principle explains the tendency of individual and market supply curves to be upward-sloping?
Which principle explains the tendency of individual and market supply curves to be upward-sloping?
- Principle of increasing opportunity cost
- Death weight loss principle
- Low-hanging-fruit principle (correct)
- Inferior goods principle
What type of goods see an increase in demand as income increases?
What type of goods see an increase in demand as income increases?
What happens to the market supply curve if both individual supply curves are upward-sloping?
What happens to the market supply curve if both individual supply curves are upward-sloping?
What occurs as producers expand production according to the text?
What occurs as producers expand production according to the text?
What assumption is made about the firms selling goods in perfectly competitive markets?
What assumption is made about the firms selling goods in perfectly competitive markets?
What characteristic defines firms in perfectly competitive markets?
What characteristic defines firms in perfectly competitive markets?
What is considered when determining the socially optimal amount of doing something?
What is considered when determining the socially optimal amount of doing something?
What concept is applied when there are benefits but also costs to taking action?
What concept is applied when there are benefits but also costs to taking action?
Flashcards are hidden until you start studying
