Question 4

The amount of a good or service that buyers would be willing and able to purchase at a specific price is

known as _____.

quantity demanded

demand

supply

quantity supplied

Question 7

All other things being equal, an increase in demand results in a(n) ______.

increase in equilibrium price and a decrease in equilibrium quantity

increase in equilibrium quantity and a decrease in equilibrium price

decrease in equilibrium quantity and a decrease in equilibrium price

increase in equilibrium price and an increase in equilibrium quantity

Question 9

Price discrimination is most likely practiced by a(n) _____.

Monopoly

oligopoly

monopolistic firm

perfectly competitive firm

Question 10

Rival pricing strategies and collisions are typically found in a(n) _____.

monopoly

oligopoly

monopolistic competition

perfectly competition

Question 11

Most products purchased in our daily lives are found in this market:

monopoly

oligopoly

monopolistic competition

perfect competition

Question 12

When the government is involved in regulating the prices sellers are allowed to charge, this often leads

to_____.

unemployment, inflation, and recession

deceptive advertising

price gouging

the quantity of goods available being less than the equilibrium quantity

Question 13

A price imposed by the government below an equilibrium price is called a ____ .

price ceiling

price floor

price carpet

price surplus

Question 15

Profit-maximizing firms produce extra units of output up to the point where:

marginal revenue equals marginal cost

marginal revenue exceeds marginal cost

marginal revenue is less than marginal cost

any of the above

Question 18

When doing research, Economists:

follow the scientific method: observation, theory, and more observation

cannot use experiments, as they are often done in areas like Physics and Chemistry.

have to use whatever data the world happens to give them

all of the above.

Question 19

Economic models_____.

must completely describe every aspect of the economy in order to be useful

are simplified abstract representations of reality

avoid the use of assumptions wherever possible

are ideals that economics agents aspire to achieve

Question 20

A few industry-dominating firms acting as a collective monopoly is known as a:

a trading bloc

a market

a cartel

an industry