10/11/22, 9:21 AM Test: Lynch Economics Unit 2 (Trivia Version) | Quizlet

Name: Score:

14 True/False questions

Term Definition 1 of 59
Products that go together are what term? Compliments

True

False

Term Definition 2 of 59
What do we call the OPPOSITE of a Tax when Surplus
the Government GIVES taxpayer money to a
business

True

False

Term Definition 3 of 59
What curve goes from the Upper Left to Lower Demand Curve
Right on a Graph?

True

False

Term Definition 4 of 59
What means that people get less Diminishing Marginal Utility
satisfaction/utility out of products the more
and more we have. So we are less willing to
buy it, unless the price is lower and lower.

True

False

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Term Definition 5 of 59
What are the 2 Basic Forces that can cause
When Demand Shifts LEFT (Decrease)or

Price to Decrease or

when Supply Shifts Right (Increase)

True

False

Term Definition 6 of 59
What is it called when products are running Price Ceiling
out, making things rare. It happens at prices
below equilibrium and causes prices to go
back up

True

False

Term Definition 7 of 59
What would have to change to cause
More Demand
Price to decrease

Quantity to decrease

True

False

Term Definition 8 of 59
Price Up = Quantity Down OR Price Down = Law of Supply
Quantity up is what Economic Law?

True

False

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Term Definition 9 of 59
If you had a WHOLE PIZZA and were hungry. Shift Demand of BK Right (More Demand)
The first piece would be very valuable (super
high utility), the next piece would be valuable
(high utility) But by the 5th piece you might be
"Bleh" (low utility) and full. By the 8th piece you
might even be "Sick" (negative utility). What
term is this an example of?

True

False

Term Definition 10 of 59
What is QD > QS called? Shortage

True

False

Term Definition 11 of 59
If the cost of resource (say wages you pay Government Regulation Problem

someone, or steel used in cars) increases

Supply Shifts Left

What way does the Supply Curve Shifts

(Less Cars can come to our country)

True

False

Term Definition 12 of 59
Explain how Expectation of Christmas effects Cost of Resource Problem

both Supply and Demand for Toys Supply Shifts Less (Because you can afford to
make less)

True

False

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Term Definition 13 of 59
What happens at prices above equilibrium (Too Surplus
High/Hot) and causes prices to go back down
toward equilibrium

True

False

Term Definition 14 of 59
Taxes are paid by a company. So if taxes go up, Government Regulation Problem

then Supply Curve Shifts what way? Supply Shifts Left

(Less Cars can come to our country)

True

False

15 Multiple choice questions

Term 15 of 59
In Supply, Price & Quantity move same direction. That's why the graph has a positive slope, what
is the "Mathematical" word for describing this relationship?

Diminishing Marginal Utility

Equilibrium Price

Expectations

Direct Relationship

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Term 16 of 59
If your income goes up, but you buy LESS of that good. What would be the term for good?

Equilibrium Price

Inferior good

Price Floor

Equilibrium Point

Term 17 of 59
What are the 2 Basic Forces that can cause

Price to Increase

When Demand Shifts LEFT (Decrease)or

or

when Supply Shifts Right (Increase)

When Demand Shifts Right (Increase)

or

when Supply Shifts LEFT (Decrease)

Less Demand & More Supply

Both cause prices down

Less D = Q down & More Supply = Q up so fight over Q

Law of Demand

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Term 18 of 59
If Prices at Mcdonalds goes up....

What happens to business at Burger King

*Can reverse all of this*

More Demand & Less Supply

Both cause prices up

More D = More Buyers/Qd up & Less Supply = Q down so fight over Q

Producing Technology Problem

Supply Shifts Right

Shift Demand of Cereal Left (Less Demand)

Shift Demand of BK Right (More Demand)

Term 19 of 59
Peanut Butter and Jelly Milk and Cereal would be examples of what term?

Compliments

Substitutes

Normal Good

Expectations

Term 20 of 59
Supply and Demand control the Price of Everything. When does that impact you?

Producing Technology Problem

Supply Shifts Right

Shift Right (More Popular = More Demand = Shift Right)

Shifting Demand Curves

More = Right

Left = Less

When you shop (buy) and when you work (sell)

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Term 21 of 59
What would have to change to cause

Price to Increase

Quantity to Increase

More Demand & Less Supply

Both cause prices up

More D = More Buyers/Qd up & Less Supply = Q down so fight over Q

More Demand

Less Demand

More Demand & More Supply

More D = More Buyers drives up prices & More Supply = Q drives down prices so they fight over
Price

More D & More S means more Buyers & More Seller so Q Increases

Term 22 of 59
Name at least 3 of the 5 Demand Determinents

Supply Determinants

1) Cost of Resources

2) Productivity

3) Producing Technology

4) Govt Taxes or Subsidy

5) Expectations

6) Gov't Regulations

7) Number of Sellers

Substitutes

5 Factors that Shift Demand Curves:

1) Consume Income

2) Consumer Tastes / Preferences

3) Substitutes

4) Compliments

5) Expectations

Compliments

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Term 23 of 59
When you shift the WHOLE Demand Curves moves. What way is MORE Demand?

Shift Right (More Popular = More Demand = Shift Right)

Shift Demand of BK Right (More Demand)

Shifting Demand Curves

More = Right

Left = Less

Shift Demand of Cereal Left (Less Demand)

Term 24 of 59
Burger King & McDonalds, Coke & Pepsi, are examples of what term?

Less Supply

Substitutes

Less Demand

Law of Supply

Term 25 of 59
If Milk suddenly triples to about $10 a gallon, what would happen to Cereal Businesses?

*Can reverse all of this*

Shift Right (More Popular = More Demand = Shift Right)

Shifting Demand Curves

More = Right

Left = Less

Shift Demand of Cereal Left (Less Demand)

Producing Technology Problem

Supply Shifts Right

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Term 26 of 59
If a government STOPS giving a subsidy to US Farmers to help them grow, what way does the
Supply Curve Shift

*Can reverse if you remove/lower subsidy*

Subsidy Problem

Lower Subsidy = Supply Shifts Less

(If the Gov't stops helping them they can afford to make less)

More Demand & Less Supply

Both cause prices up

More D = More Buyers/Qd up & Less Supply = Q down so fight over Q

Shaking Supply Curves

Price Up = Equilibrium Shakes to Upper Right

Price Down = Equilibrium Shakes to Lower Left

Cost of Resource Problem

Supply Shifts Less (Because you can afford to make less)

Term 27 of 59
What TWO changes would have to happen to cause

Price to Decrease

And a Fight (Anything) over Quantity

Less Demand & More Supply

Both cause prices down

Less D = Q down & More Supply = Q up so fight over Q

More Demand & Less Supply

Both cause prices up

More D = More Buyers/Qd up & Less Supply = Q down so fight over Q

More Demand

Government Taxes Problem

Taxes Up = Supply Shifts Less (Because they can't afford to make as many)

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Term 28 of 59
When Consumer Tastes change, +something becomes more popular, demand for that product
shifts what way?

Shifting Demand Curves

More = Right

Left = Less

Cost of Resource Problem

Supply Shifts Less (Because you can afford to make less)

Shift Right (More Popular = More Demand = Shift Right)

Shifting Supply Curves

Right is MORE

Left is LESS

(Especially important to not think up/down here or your wrong!)

Term 29 of 59
What is it called when you set a minimum price by LAW rather than by Supply/Demand.

Ex: Minimum Wage

Price Floor

Demand Curve

More Supply

Less Supply

15 Matching questions

What curve goes from the Lower Left to Upper Right on A. Supply 30-44 of 59

a Graph? Determinants

1) Cost of
Resources

What is the ONLY factor that can change both Demand

2) Productivity

and Supply
3) Producing
Technology

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What is the term for the Legal Limit Govt puts on 4) Govt Taxes or
production? Subsidy

5) Expectations

6) Gov't
Say the Shift or Shake Rhyme
Regulations

7) Number of

What is the Number of Sellers Called? Sellers

B. Quota

What is the fundamental willingness and ability to buy a C. Demand

product. You have to have both
D. Surplus

If your income goes up, and you buy more of that good. E. Expectations
What would be the term for good?
F. More Supply

G. QS or Quantity
Name 4 of 7 Determinents/Factors that can shift Supply
Supplied

H. Supply
What would have to change to cause

Price to Increase
I. Equilibrium Point
Quantity to Decrease
J. Less Supply

If more business enter that market that increases supply K. Number of Sellers

so the Supply Curve shfits RIGHT

L. If a problem
*can reverse when companies close* mentions PRICE

And same product

If you graph Supply Curve and Demand Curve on the TWICE

same graph, What is point is where they cross. It occurs It SHAKES like
naturally scared little MICE

M. Supply
fundamental willingness and ability to produce AND sell Curve/Graph
a product. You have to have both for it to be a Supply.
N. QD or Quantity
Demanded
What is QS > QD called?
O. Normal Good
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What is the Number of Buyers Called?

What would have to change to cause

Price to Decrease

Quantity to Increase

15 Written questions

Term 45 of 59
If the Gov't puts a NEW or LOWER a quota on foreign cars, what happens to the Supply Curve of
Cars?

*Can reverse by removing a quota*

Term 46 of 59
It is a natural compromise between

Sellers trying to sell HIGH

Buyers trying to buy CHEAP

Term 47 of 59
What TWO changes would have to happen to cause

A Fight over Price

And Quantity to Increase

Term 48 of 59
Products that replace each other are called what?

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Term 49 of 59
What TWO changes would have to happen to cause

Price to Increase

And a Fight (Anything) over Quantity

Term 50 of 59
If the line is Shaking on Supply Curve (Really because Demand is Shifting). When Price goes up,
does the Equilibrium Point move to the Lower Left or Upper Right on the Supply Curve

Term 51 of 59
What TWO changes would have to happen to cause

A Fight over Price

And Quantity to decrease

Term 52 of 59
If some new technology your business more productive (say computers) the supply curve shifts
What way?

Term 53 of 59
If something makes your business more productive (say an assembly line or more motivated
employees) What way does the supply curve shifts?

Term 54 of 59
If the line is Shaking on Demand Curve (Really because Supply is Shifting). When Price goes up,
does the Equilibrium Point move to the Lower Right or Upper Left on the Demand Curve

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Term 55 of 59
When you Look at a Demand OR Supply Schedule T-Table, what is different than when when you
look at a Math T-Table?

Term 56 of 59
When you shift the WHOLE Supply Curves moves. What way is MORE Supply?

What way is LESS supply

Term 57 of 59
What is it called when you set a maximum price by LAW rather than by Supply/Demand

Term 58 of 59
In Demand, Price & Quantity move opposite directions. That's why the graph has a negative
slope, what is the "Mathematical" word for describing this relationship?

Term 59 of 59
Price Up = Quantity UP OR Price Down = Quantity Down is what Economic Law?

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