E2SF GRADE A
Which of the following situations could cause aggregate demand curve AD1 to shift to
AD0 - (correct answer)an increase in consumer saving
Aggregate demand will decrease - (correct answer)if consumers save more and spend
less
Bonds - (correct answer)are contracts to repay borrowed money at regular intervals
The par value of a bond is - (correct answer)the total amount borrowed
price - (correct answer)monetary value of a product
price ceiling - (correct answer)maximum legal price that can be charged for a product
market equilibrium - (correct answer)prices are relatively stable, and quantity supplied to
equal to quantities demanded
shortage - (correct answer)quantity demanded is greater than quantity supplied
surplus - (correct answer)quantity supplied is greater than quantity demanded at a given
price
equilibrium price - (correct answer)price that produces neither a surplus nor a shortage
What does the movement shown on this graph represent? - (correct answer)a change in
quantity supplied
,The movement shown in this graph represents a change in what? - (correct
answer)supply
Which of the following choices could cause the movement shown in this graph? -
(correct answer)technology improves production
Which of the following choices could cause the movement shown in this graph? -
(correct answer)a decrease in the price of Blu-ray players
What does the movement from b' to b on the graph represent? - (correct answer)a
decrease in demand
What market structure does the letter "r" in the table represent? - (correct
answer)perfect competition
A decrease in competition within an industry often results in - (correct answer)a firm
wielding economic and political power
The Sherman Antitrust Act - (correct answer)outlawed restraints and monopolies that
hindered trade
An example of a Price Ceiling would be - (correct answer)rent controls
On the graph, suppose that demand for gold stands at D1D1. Then the opening of a
new gold stand shifted the supply curve from S1S1 S2S2. How does this shift affect
price? - (correct answer)Price declines from 400 to 280
Perfect competition is characterized by all of the following EXCEPT - (correct
answer)sellers acting together to set prices
, A monopoly that is based not he ownership or control of a manufacturing method or
practice is a - (correct answer)technological monopoly
When a major car company lowers its prices, other car makers will probably - (correct
answer)lower their prices
In the passage, the term "price supports" refers to a - (correct answer)price floors
In the table, market equilibrium will occur at what price? - (correct answer)$14
Prices enable a market economy to adult to unexpected events by - (correct
answer)adjusting consumption and production
If a competitive market is at equilibrium, and if there is a sudden increase demand -
(correct answer)shortage will occur ad the price will increase
The theory of competitive pricing - (correct answer)is a set of ideal conditions and
outcomes
Suppose the demand curve shifts from D1 to D2, as shown on the graph. How does
supply and quantity supplied and quantity demanded change at the new equilibrium
price? - (correct answer)Both quantity supplied and quantity demanded increase
Market equilibrium is the situation in which the quantity of output supplied is equal to the
quantity of output demanded - (correct answer)True
The amount of a price change is affected by the elasticity of both the supply and
demand - (correct answer)True
Which of the following situations could cause aggregate demand curve AD1 to shift to
AD0 - (correct answer)an increase in consumer saving
Aggregate demand will decrease - (correct answer)if consumers save more and spend
less
Bonds - (correct answer)are contracts to repay borrowed money at regular intervals
The par value of a bond is - (correct answer)the total amount borrowed
price - (correct answer)monetary value of a product
price ceiling - (correct answer)maximum legal price that can be charged for a product
market equilibrium - (correct answer)prices are relatively stable, and quantity supplied to
equal to quantities demanded
shortage - (correct answer)quantity demanded is greater than quantity supplied
surplus - (correct answer)quantity supplied is greater than quantity demanded at a given
price
equilibrium price - (correct answer)price that produces neither a surplus nor a shortage
What does the movement shown on this graph represent? - (correct answer)a change in
quantity supplied
,The movement shown in this graph represents a change in what? - (correct
answer)supply
Which of the following choices could cause the movement shown in this graph? -
(correct answer)technology improves production
Which of the following choices could cause the movement shown in this graph? -
(correct answer)a decrease in the price of Blu-ray players
What does the movement from b' to b on the graph represent? - (correct answer)a
decrease in demand
What market structure does the letter "r" in the table represent? - (correct
answer)perfect competition
A decrease in competition within an industry often results in - (correct answer)a firm
wielding economic and political power
The Sherman Antitrust Act - (correct answer)outlawed restraints and monopolies that
hindered trade
An example of a Price Ceiling would be - (correct answer)rent controls
On the graph, suppose that demand for gold stands at D1D1. Then the opening of a
new gold stand shifted the supply curve from S1S1 S2S2. How does this shift affect
price? - (correct answer)Price declines from 400 to 280
Perfect competition is characterized by all of the following EXCEPT - (correct
answer)sellers acting together to set prices
, A monopoly that is based not he ownership or control of a manufacturing method or
practice is a - (correct answer)technological monopoly
When a major car company lowers its prices, other car makers will probably - (correct
answer)lower their prices
In the passage, the term "price supports" refers to a - (correct answer)price floors
In the table, market equilibrium will occur at what price? - (correct answer)$14
Prices enable a market economy to adult to unexpected events by - (correct
answer)adjusting consumption and production
If a competitive market is at equilibrium, and if there is a sudden increase demand -
(correct answer)shortage will occur ad the price will increase
The theory of competitive pricing - (correct answer)is a set of ideal conditions and
outcomes
Suppose the demand curve shifts from D1 to D2, as shown on the graph. How does
supply and quantity supplied and quantity demanded change at the new equilibrium
price? - (correct answer)Both quantity supplied and quantity demanded increase
Market equilibrium is the situation in which the quantity of output supplied is equal to the
quantity of output demanded - (correct answer)True
The amount of a price change is affected by the elasticity of both the supply and
demand - (correct answer)True
