Chapter 5:
Supply
1.
High prices are signals for producers to produce __________and for buyers to buy __________.
a.
more; the same amount
b.
the same amount; less
c.
less; more
d.
more; less
2.
Problems regarding fairness, high administrative costs, and diminished incentives to work and produce can be the result of __________.
a.
nonprice allocation systems
b.
price allocation systems
c.
supply
d.
demand
3.
Advantages of using __________to allocate goods and services include freedom of choice, no administrative costs, neutrality, flexibility, and efficiency.
a.
tariffs
b.
prices
c.
rationing
d.
marginal product
4.
Economist often use a(n) __________, a set of assumptions and/or relationships that can be listed in a table, illustrated with a graph, or even stated algebraically, to help analyze behavior and predict outcomes.
a.
cost-benefit analysis
b.
economic model
c.
decision making grid
d.
variable proportion model
5.
In a competitive market, if the price is too high, a temporary __________appears until the price goes down.
a.
shortage
b.
price ceiling
c.
surplus
d.
price floor
6.
The actual price changes in any given market are likely to be greater if both supply and demand are __________.
a.
cross elastic
b.
unit elastic
c.
elastic
d.
inelastic
7.
A __________ is a check sent to producers that makes up the difference between the actual market price and the target price.
a.
ration coupon
b.
deficiency payment
c.
target payment
d.
market coupon
8.
If the fixed price is a __________, as in the case of rent controls, a shortage usually appears for as long as the price remains fixed below the equilibrium.
a.
price ceiling
b.
price floor
c.
price surplus
d.
fixed shortage
9.
When economists say "markets talk," they mean _____________.
a.
deficiency payments are needed
b.
prices are too low
c.
prices in markets move up or down significantly
d.
price floors prevent markets from reaching equilibrium
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Unit 1
Unit 2
Unit 3
Unit 4
Unit 5
Chapter 1
Chapter 2
Chapter 3
Chapter 4
Chapter 5
Chapter 6
Chapter 7
Chapter 8
Chapter 9
Chapter 10
Chapter 11
Chapter 12
Chapter 13
Chapter 14
Chapter 15
Chapter 16
Chapter 17
Chapter 18
Chapter 19
Chapter 20
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