Econ 101 Caldwell Midterm 1
Exam Questions and Answers
100% Pass
Competitive market - CORRECT ANSWER-Market where there are many buyers
and sellers of the same good/service
Effect of an individual's actions on price in a competitive market - CORRECT
ANSWER-none
Quantity demanded depends on ________ - CORRECT ANSWER-price
Law of Demand - CORRECT ANSWER-As price increases, quantity demanded
decreases
Quantity demanded - CORRECT ANSWER-Amount consumers are willing to
buy at a given price
Strong economies shift demand curves to the _______ - CORRECT ANSWER-
right
Shift of demand curve - CORRECT ANSWER-Due to something that
increases/decreases the demand for that good at any given price
,Movement along demand curve - CORRECT ANSWER-Change in quantity
demanded because of change in price
6 things that cause demand curve to shift - CORRECT ANSWER-Substitutes,
complements, income, fads/changes in taste, expected change in future price,
change in number of consumers
Substitutes - CORRECT ANSWER-Good that serves a similar purpose to another
good. As price of good A increases, demand curve of B shifts right
Complements - CORRECT ANSWER-Good that are often bought and used
together. As price of good A increases, demand curve for good B shifts left
Normal good - CORRECT ANSWER-Demand increases as income rises
Inferior good - CORRECT ANSWER-Demand decreases as income rises
Example of an expected change in future price - CORRECT ANSWER-Seasonal
sales
Quantity supplied - CORRECT ANSWER-Actual amount of a good people are
willing to sell at a given price
Law of Supply - CORRECT ANSWER-As price increases, producers will supply
more of the good because they can generate more revenue
Input - CORRECT ANSWER-Good or service used to produce another good or
service
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, Direction of supply curve shift when price of input increases - CORRECT
ANSWER-Left/up
Substitutes in terms of producers - CORRECT ANSWER-A producer that
produces A&B will shift supply curve of B to the left it the price of A increases
Complements in terms of producers - CORRECT ANSWER-A producer that
produces A&B will supply more of A if the price of B increases
Shift of supply curve after introduction of new technology - CORRECT
ANSWER-Right
Shift of supply curve with change in expectation - CORRECT ANSWER-An
increase in the anticipated future price of a good will lower supply today because
producers will store the good and supply curve will shift to the left
If there are more producers in a market - CORRECT ANSWER-There will be a
higher quantity of a supplied good and the supply curve will shift right
Out of pocket cost - CORRECT ANSWER-$ amount for something
Opportunity cost - CORRECT ANSWER-Sacrifice that was made to do
something
Economic cost - CORRECT ANSWER-Sum of opportunity and out of pocket
costs
Equilibrium - CORRECT ANSWER-A situation in which no individual would be
better off taking a different action
Exam Questions and Answers
100% Pass
Competitive market - CORRECT ANSWER-Market where there are many buyers
and sellers of the same good/service
Effect of an individual's actions on price in a competitive market - CORRECT
ANSWER-none
Quantity demanded depends on ________ - CORRECT ANSWER-price
Law of Demand - CORRECT ANSWER-As price increases, quantity demanded
decreases
Quantity demanded - CORRECT ANSWER-Amount consumers are willing to
buy at a given price
Strong economies shift demand curves to the _______ - CORRECT ANSWER-
right
Shift of demand curve - CORRECT ANSWER-Due to something that
increases/decreases the demand for that good at any given price
,Movement along demand curve - CORRECT ANSWER-Change in quantity
demanded because of change in price
6 things that cause demand curve to shift - CORRECT ANSWER-Substitutes,
complements, income, fads/changes in taste, expected change in future price,
change in number of consumers
Substitutes - CORRECT ANSWER-Good that serves a similar purpose to another
good. As price of good A increases, demand curve of B shifts right
Complements - CORRECT ANSWER-Good that are often bought and used
together. As price of good A increases, demand curve for good B shifts left
Normal good - CORRECT ANSWER-Demand increases as income rises
Inferior good - CORRECT ANSWER-Demand decreases as income rises
Example of an expected change in future price - CORRECT ANSWER-Seasonal
sales
Quantity supplied - CORRECT ANSWER-Actual amount of a good people are
willing to sell at a given price
Law of Supply - CORRECT ANSWER-As price increases, producers will supply
more of the good because they can generate more revenue
Input - CORRECT ANSWER-Good or service used to produce another good or
service
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED
, Direction of supply curve shift when price of input increases - CORRECT
ANSWER-Left/up
Substitutes in terms of producers - CORRECT ANSWER-A producer that
produces A&B will shift supply curve of B to the left it the price of A increases
Complements in terms of producers - CORRECT ANSWER-A producer that
produces A&B will supply more of A if the price of B increases
Shift of supply curve after introduction of new technology - CORRECT
ANSWER-Right
Shift of supply curve with change in expectation - CORRECT ANSWER-An
increase in the anticipated future price of a good will lower supply today because
producers will store the good and supply curve will shift to the left
If there are more producers in a market - CORRECT ANSWER-There will be a
higher quantity of a supplied good and the supply curve will shift right
Out of pocket cost - CORRECT ANSWER-$ amount for something
Opportunity cost - CORRECT ANSWER-Sacrifice that was made to do
something
Economic cost - CORRECT ANSWER-Sum of opportunity and out of pocket
costs
Equilibrium - CORRECT ANSWER-A situation in which no individual would be
better off taking a different action
