AnswersEAP-Economics and Personal Finance BUnit Test

Unit Test — Unit test Answers

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1
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Which is the best title for this diagram?

Question illustration
A
The Definition of Supply
B
Factors That Affect Supply
C
Elasticity and Competition
D
The Law of Supply
2
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A possible result of disequilibrium is

A
excess demand.
B
lower demand.
C
fixed prices.
D
stable availability.
3

Both a demand curve and a demand schedule show how

A
prices affect consumer demand.
B
consumer demand affects income.
C
prices affect complementary goods.
D
consumer demand affects substitute goods.
4

A chart that shows the connection between consumer demand and price is a

A
market schedule.
B
market curve.
C
demand curve.
D
demand schedule.
5

[BLANK]

A
elasticity
B
quality
C
time
D
quantity
6

Which is likely to occur if there is a price increase for a good which exhibits elastic demand?

A
People might buy a more expensive substitute good.
B
People might buy a less expensive complementary good.
C
People might buy a less expensive substitute good.
D
People might buy a more expensive complementary good.
7

The graph shows a point of equilibrium.If quantity demanded exceeds quantity supplied, what most likely needs to happen to achieve equilibrium?

Question illustration
A
The supply needs to increase
B
The price needs to decrease
C
The price needs to increase
D
The demand needs to increase
8

Equilibrium occurs when supply and demand coordinate to

A
set excess demand.
B
set prices and production.
C
maintain excess supply.
D
raise prices and production.
9

[BLANK]

A
increases
B
decreases
C
stays the same
10

The graph shows a supply curve.Which events could cause the change in supply shown on this graph? Check all that apply.

Question illustration
A
A producer goes out of business.
B
A natural disaster causes production to drop.
C
A new company joins the marketplace.
D
A company begins to produce more goods.
E
A resource needed to produce more of the good has became scarce.
11

Which best describes the relationship between consumers and producers?

A
They usually ignore each other.
B
They interact with each other.
C
They agree on prices.
D
They dislike each other.
12

Producers hoping to earn profits supply goods and services to

A
debtors.
B
themselves.
C
competitors.
D
consumers.
13

A clothing store has ordered a new supply of jeans for the fall season and wants to sell off the remaining items from the previous spring. What action would the store owner most likely take?

A
The store owner would most likely raise the price of the spring jeans to encourage producers.
B
The store owner would most likely lower the price of the spring jeans to encourage producers.
C
The store owner would most likely raise the price of the spring jeans to encourage consumers.
D
The store owner would most likely lower the price of the spring jeans to encourage consumers.
15

Which statements correctly explain price floors and price ceilings? Choose four answers.Ineffective price floors tend to be too high.Ineffective price ceilings tend to be too low.Price floors help producers by raising prices.Price ceilings help consumers by lowering prices.Effective price floors are set above equilibrium.Effective price ceilings are set below equilibrium.

A
Ineffective price floors tend to be too high.
B
Ineffective price ceilings tend to be too low.
C
Price floors help producers by raising prices.
D
Price ceilings help consumers by lowering prices.
E
Effective price floors are set above equilibrium.
F
Effective price ceilings are set below equilibrium.

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