Economics Quiz Answers

307 Words1 Page
bulb-icon

Recommended: Price elasticity of demand

6. When short-run aggregate supply increases, it means that the short-run aggregate supply curve shifts to the _____ and the quantity of aggregate output that producers are willing to supply _____. A) right; decreases B) right; increases C) left; decreases D) left; increases 7. An increase in the minimum wage would likely: A) cause a movement up the short-run aggregate supply curve from left to right. B) cause a movement down the short-run aggregate supply curve from right to left. C) shift the short-run aggregate supply curve to the right. D) shift the short-run aggregate supply curve to the left. 8. Which of the following will increase short-run aggregate supply? A) a law that requires health insurance for all employees B) an increase in

Show More
Related

  • Relative Scarcity In Australia

    751 Words  | 2 Pages

    These economic models are immensely useful and help us to understand what is going on in the world economically speaking. These particular economic models are usually shown in graph or diagram form as they are clear representations of data. The production possibilities curve is a model used to understand how the economic problem relates to a nation’s productive capacity. The PPC (Production possibilities curve) enables economists to gather information on what level of production is possible when all resources are being used and what will occur when there is no availability or unemployment of particular resources. This particular model, PPC, is represented by a two dimensional diagram, therefore assuming that resources can be used to produce either product on the model. The PPC can clearly visualize opportunity cost between two products as the model demonstrates that to produce more of one good, e.g. vegemite, whilst using the same amount of resources, economies must produce less of the other good, e.g.

    Read More

  • Economics

    596 Words  | 2 Pages

    The Island of Mocha in the video is an example of a traditional economic system evolving into a market system. Every person plays a key role in this traditional system. They had fisherman, coconut collector, melon seller, lumberman, barber, doctor, preacher, brownies seller, and a chief. The Mochans got sick of trading goods all across the island just to get the things that they want or needed. The Chief decided that they would use clam shell for currency instead of trading.

    Read More

  • Agricultural Adjustment Act

    605 Words  | 2 Pages

    this notion of stable supply and demand affected prices of farm commodities. “Low prices on

    Read More

  • Mcguigan, 2014 Price Elasticity And Macroeconomics: Price Elasticity

    1188 Words  | 3 Pages

    Additionally, the equilibrium price, the quantity can be seen on the graph above indicated at the point where the supply and demand curve meets.

    Read More

  • Discussing the Issue of Smoking in Cars

    621 Words  | 2 Pages

    Since various members of society are affected by this negative externality, this next graph displays the surplus between the Equilibrium conditions and the optimum conditions.

    Read More

  • Macro Economics

    4197 Words  | 9 Pages

    Only what to produce and how to produce, since distribution is not the task of economics.

    Read More

  • Essay On Natural Gas Market

    662 Words  | 2 Pages

    The natural gas market, however, is in an upturn as recent figures demonstrate – contracted demand higher gas prices. The relationship between demand and supply, which regulates the market price and quantity, are influenced by various factors (any changes in market other than a change in prices) resulting curves to shift – that is, market price and quantity increases or decreases.

    Read More

  • Irrational Love Analysis

    1068 Words  | 3 Pages

    Another word for this is equilibrium, which is the “state in which opposing forces or influences are balanced” (). By shifting the supply curve, it can adjust the equilibrium price by changing its price and quantity. A shift of a supply curve works the same way as the shift of a demand curve. By referring back to Tim’s life, his supply of labor allows him to receive his income he needed in order to make demands for his desire – or his woman’s desire. When a woman has an expensive taste, it will affect Tim’s supply curve because he will not be able to afford songwriters, singers, and bands. This causes the supply curve to shift to the left resulting an increase in price of Tim’s music and a decrease in quantity of his music. If the supply curve continues to shift to the left, eventually Tim will go out of business, and his girlfriend will ditch him because he can no longer keep up with her wishes. So far, everything is going downhill and the opportunity cost Tim made was not worth because it affected his career and his life. However, if Tim decided to his focus on his career rather than his wife, then the supply curve will shift to the right. This depends on the opportunity cost as well as if he is willing to spend less money on his wife and more towards his profession. By having a right shift of

    Read More

  • IB Economics Ib Economics

    651 Words  | 2 Pages

    A price floor is a legally set minimum price for a good or service (Tragakes 92). This is an example of government intervention. The minimum price is set above the equilibrium price in order to reduce quantity demanded. The governments of England and Wales have decided to set a price floor for alcohol. The result will be a surplus or, in other words, an excess in supply of alcohol. Alcohol has a very price inelastic demand. The price elasticity of demand is a measure of the responsiveness of the quantity of a good demanded to the changes in its price (Tragakes 47). This price floor in England and Wales has had an effect on the sales of alcohol as illustrated in the following diagram:

    Read More

  • Rising Inflation in the UK

    1391 Words  | 3 Pages

    In an economy, aggregate demand (AD) accounts for the total expenditure on goods and services. It has five constituents; Consumer expenditure (C), Investment expenditure (I), Government expenditure (G), Export expenditure (X) and import expenditure (M), This gives us: AD= C+I+G+X-M. Aggregate supply (AS) on the other hand is the total supply of goods and services in the economy. Increasing AD and decreasing AS both cause demand-pull and cost-push inflation respectively. Demand pull inflation occurs when aggregate demand (AD) continuously rises, detailed in Figure 1. The AD curve continuously shifts to the right, as demand continuously increases, from point a to b to c. This consequently causes an increase in the price level of goods and services. As prices rise, costs of production also increase, causing producers to reduce output (a decrease in aggregate supply (AS)), shifting the AS curve to the left and leading to yet another increase in prices, (t...

    Read More

  • Economics of the Automobile Industry

    2412 Words  | 5 Pages

    As the supply curve moves in the automobile industry, the equilibrium price and quantity sold will change with this shift. When the automobile manufacturers see this shift in supply, they will then raise their prices and the quantity sold will fall. Car manufacturers will also develop...

    Read More

  • Supply And Demand

    1824 Words  | 4 Pages

    The market price of a good is determined by both the supply and demand for it. In the world today supply and demand is perhaps one of the most fundamental principles that exists for economics and the backbone of a market economy. Supply is represented by how much the market can offer. The quantity supplied refers to the amount of a certain good that producers are willing to supply for a certain demand price. What determines this interconnection is how much of a good or service is supplied to the market or otherwise known as the supply relationship or supply schedule which is graphically represented by the supply curve. In demand the schedule is depicted graphically as the demand curve which represents the amount of goods that buyers are willing and able to purchase at various prices, assuming all other non-price factors remain the same. The demand curve is almost always represented as downwards-sloping, meaning that as price decreases, consumers will buy more of the good. Just as the supply curves reflect marginal cost curves, demand curves can be described as marginal utility curves. The main determinants of individual demand are the price of the good, level of income, personal tastes, the population, government policies, the price of substitute goods, and the price of complementary goods.

    Read More

  • Fiscal Policy Multiplier

    487 Words  | 1 Pages

    The multiplier needs to be determined in order to properly calculate how much the aggregate demand curve shifts. Since the curve shifts “by an amount equal to the initial change in government purchases times the multiplier.” (Rittenberg and Tregarthen, 2012) Without knowing the size of the multiplier, it would be hard to determine how much the aggregate demand curve

    Read More

  • De Beers Case Study

    1246 Words  | 3 Pages

    Diagram - Figure 1.2 shows a rise in prices of diamonds as market supply was limited so demand for diamonds ...

    Read More

  • Microeconomics Reflection

    1401 Words  | 3 Pages

    What is Microeconomics? This question was left unanswered when I initially enrolled in this course. Microeconomics is the social science that studies the implications of individual human actions, specifically about how those decisions affect the utilization and distribution of scarce resources. Microeconomics shows how and why different goods have different values, how individuals create more efficient or more productive decisions, and how individuals best coordinate and cooperate with one another. Microeconomics does not try to explain what should happen in a market, but instead only explains what to expect if certain conditions change. For instance, If the price of the new iPhone 8 is higher than the previous model will the consumer buy it? There are several elements that will play into getting an answer for this question, but gives you a general idea of what microeconomics entails.

    Read More

More about Economics Quiz Answers

Open Document