Unit 2: Understanding Microeconomics — Test Answers

25 verified answers

This chart shows the link between

interest in a product and the price a producer pays.

amount of a product and the price a consumer pays.

amount of a product and the price a producer pays.

interest in a product and the price a consumer pays.

Which statement best explains this passage?

It describes government measures to stimulate demand and bring about a recovery.

It describes a shift in government policies during a peak on the business cycle.

It describes government measures to increase production and bring about a depression.

It describes a shift in government policies during a trough on the business cycle.

What do these graphs indicate about the relationship between employment levels and prices during economic cycles?

Falling prices drive unemployment rates lower.

As unemployment rates rise, average prices fall.

Rising unemployment rates drive prices higher.

There is no link between prices and unemployment.

Time is measured along the x -axis. What is measured along the y -axis?

prices

economic output

employment levels

demand

Based on the graph, which event could cause the change shown?

A product becomes more popular and more customers purchase it.

A product becomes less popular and fewer customers purchase it.

A product sells out of stores and customers can no longer purchase it.

A product is restocked on store shelves and is ready for customer purchase.

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