Quiz2 - 1. The unique point at which the supply and demand...

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Unformatted text preview: 1. The unique point at which the supply and demand curves intersect is called a. market harmony. b. coincidence. c. cohesion. d. equilibrium. ANS: D PTS: 1 DIF: 1 REF: 4-4 TOP: Equilibrium MSC: Definitional 2. The dictionary defines equilibrium as a situation in which forces a. balance. b. are the same. c. clash. d. remain constant. ANS: A PTS: 1 DIF: 1 REF: 4-4 TOP: Equilibrium MSC: Definitional 3. The price at which quantity supplied equals quantity demanded is called the a. coordinating price. b. monopoly price. c. equilibrium price. d. All of the above are correct. ANS: C PTS: 1 DIF: 1 REF: 4-4 TOP: Equilibrium price MSC: Definitional 4. Another term for equilibrium price is a. dynamic price. b. market-clearing price. c. quantity-defining price. d. satisfactory price. ANS: B PTS: 1 DIF: 1 REF: 4-4 TOP: Equilibrium price MSC: Definitional 5. If, at the current price, there is a shortage of a good, a. sellers are producing more than buyers wish to buy. b. the market must be in equilibrium. c. the price is below the equilibrium price. d. quantity demanded equals quantity supplied. ANS: C PTS: 1 DIF: 2 REF: 4-4 TOP: Shortages MSC: Interpretive 6. A decrease in input costs to firms in a market will result in a. a decrease in equilibrium price and an increase in equilibrium quantity. b. a decrease in equilibrium price and a decrease in equilibrium quantity. c. an increase in equilibrium price and no change in equilibrium quantity. d. an increase in equilibrium price and an increase in equilibrium quantity. ANS: A PTS: 1 DIF: 2 REF: 4-4 TOP: Equilibrium | Inputs MSC: Applicative Figure 4-7 7. Refer to Figure 4-7 . Equilibrium price and quantity are, respectively, a. $35 and 200. b. $35 and 600. c. $25 and 400. d. $15 and 200. ANS: C PTS: 1 DIF: 1 REF: 4-4 TOP: Equilibrium MSC: Interpretive 8. Refer to Figure 4-7 . At a price of $35, a. there would be a shortage of 400 units. b. there would be a surplus of 200 units. c. there would be a surplus of 400 units. d. there would be an excess supply of 200 units. ANS: C PTS: 1 DIF: 2 REF: 4-4 TOP: Surpluses MSC: Interpretive 9. Refer to Figure 4-7 . At a price of $15, a. there would be a shortage of 400 units. b. there would be a surplus of 400 units. c. there would be a shortage of 200 units. d. there would be an excess demand of 200 units. ANS: A PTS: 1 DIF: 2 REF: 4-4 TOP: Shortages MSC: Interpretive 10. Refer to Figure 4-7 . At the equilibrium price, a. 200 units would be supplied and demanded. b. 400 units would be supplied and demanded. c. 600 units would be supplied and demanded. d. 600 units would be supplied, but only 200 would be demanded. ANS: B PTS: 1 DIF: 1 REF: 4-4 TOP: Equilibrium MSC: Interpretive 11. Refer to Figure 4-7 . At a price of $35, a. a shortage would exist and the price would tend to fall from $35 to a lower price....
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This note was uploaded on 05/16/2010 for the course ECO BA 521 taught by Professor Dr.bridges during the Spring '10 term at Andrew Jackson.

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Quiz2 - 1. The unique point at which the supply and demand...

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