AnswersTX-Economics CRUnit Test

Introduction to Macroeconomics Answers

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The graph shows demand.In order to achieve equilibrium, what else must be included on the graph?

Question illustration
d
disequilibrium
s
supply curve
e
excess supply
e
excess demand
42
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The graph shows a point of equilibrium.What does "Q” represent on the graph?

Question illustration
A
the point where equilibrium is achieved
B
the quantity at the equilibrium point
C
the average cost of goods sold
D
the point where supply and demand drop
43

This graph shows a supply curve.What happens when the price of a good increases?

Question illustration
A
The quantity of goods that are produced increases.
B
The producer of the good is certain to make less money.
C
The quantity of goods that are produced decreases.
D
The quantity of goods that are produced stays about the same.
44

The chart shows a combined supply and demand schedule.

Question illustration
A
The cost to make a pair of shoes will rise.
B
A scarcity of shoes will result.
C
Profits from selling shoes will increase.
D
Consumers will want to buy fewer pairs of shoes.
45

When prices for homes rise, why might construction companies decide to build more homes?

A
to increase employment
B
to make a profit
C
to create a need for more resources
D
to boost name recognition
46

Microeconomics is the study of the economic interactions between

A
producers and their suppliers.
B
Consumers and the government
C
Consumers and producers ✓ Correct
D
Producers and the government
47

Consumers create demand for

A
goods and services. ✓ Correct
B
sales and low prices.
C
goods and income.
D
services and low prices.
48

The degree to which quantity demanded changes after a price change is called

A
elasticity of demand. ✓ Correct
B
a substitute good.
C
a complementary good.
D
consumer demand.
49

In pure competition, producers compete exclusively on the basis of

A
selling identical items.
B
advertising heavily to promote their good.
C
producing the unique features of their good.
D
focusing on maintaining a positive image.
50

The graph shows a demand curve.The graph shows the demand curve shifting from D (orange) to D₁ (blue), with the new curve located to the left of the original curve.Which statement best explains this change?

Question illustration
A
A decrease in quantity demanded caused by an increase in the product's price.
A
A decrease in demand caused by a fall in income or a fall in the price of a substitue good.
A
An increase in demand caused by higher consumer income.
A
A movement along the demand curve caused by a price change.
51

Read the scenario below and then answer the question. Sample scenario:Scientists have created a new grass seed that stops grass growth at a specific length, eliminating the need to mow the lawn. The price of this seed is high, but many consumers still want to use it. As a result, several different producers supply a large amount of this seed to consumers. In order to attract consumers to their product, some producers lower their prices and supply fewer bags of seeds. What is the best description of the grass seed that is described in this scenario?

A
a good with a low price
B
a good with a high price
C
a good with an inelastic supply
D
a good with an elastic supply
52

Which explains the connection between the law of demand and excess demand?

A
The law states that decreases in price leads to greater quantity demanded and limited supply, which occurs during excess demand.
B
The law states that increases in price increases leads to greater quantity demanded and limited supply, which occurs during excess demand.
C
The law states that decreases in price leads to greater supply and equilibrium, which occurs during excess demand.
D
The law states that increases in price leads to greater supply and equilibrium, which occurs during excess demand.
53

The graph shows the price of a good compared to the quantity demanded and the quantity supplied.On this graph, what does the green arrow represent?

Question illustration
a
an ineffective price floor set above equilibrium causing a surplus.
a
an effective price floor set below equilibrium causing a shortage.
a
an ineffective price ceiling set above equilibrium causing a surplus.
a
an effective price ceiling set below equilibrium causing a shortage.
54

In the market, actions known as incentives affect

p
producers only.
c
consumers only.
c
consumers or producers.
n
neither consumers nor producers.
55

The graph shows excess demand.Which explains why the price indicated by p2 on the graph is lower than the equilibrium price?

Question illustration
A
As prices fall, quantity demanded goes up.
B
As prices fall, quantity demanded goes down.
C
As prices fall, quantity demanded stays the same.
D
As prices fall, quantity demanded disappears.
56

Question is locked

Question illustration
Answer not available
57

Tasty Treat Tea is a popular iced tea drink. When the manufacturer begins to use imported tea leaves, the price rises by 10%, and the quantity demanded falls by 20%.The fact that quantity demanded changed by more than the price change suggests that

A
The consumer no longer prefers the iced tea drink.
B
The demand for Tasty Treat Tea is elastic.
C
The demand for Tasty Treat Tea is inelastic.
D
The consumer no longer shops at Tasty Treat Tea.
58

The graph shows excess supply.Which needs to happen to the price indicated by p2 on the graph in order to achieve equilibrium?

Question illustration
A
It needs to be increased.
B
It needs to be decreased.
C
It needs to reach the price ceiling.
D
It needs to remain unchanged.
59

A supply schedule shows how prices affect the

A
quality of a good.
B
overall economy of a country.
C
quantity of a good supplied by a producer.
D
unemployment rate.
60

Maria purchases a premium brand of coffee at the grocery store for $8. Which would be considered a substitute good?

A
a coffee pot
B
a bottle of coffee creamer
C
a lower-priced brand of coffee
D
a pound of sugar

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