Economics Unit 2 (NEW)

Front

Use this diagram to identify which of the following would cause consumers to demand fewer slices of pizza: an increase in the supply of pizza slices, a decrease in the supply of tacos, an increase in the price of pizza slices, a decrease in the price of pizza slices.

Back

an increase in the price of pizza slices

Front

Which of the following BEST restates the point made in the statement below?
"The most famous law in economics, and the one that economists are most sure of, is the law of demand. On this law is built almost the whole edifice of economics."
—David Henderson, “Demand,” The Concise Encyclopedia of Economics
Options: The way markets respond to a change in price is highly predictable., The laws of demand and supply are easy to understand., Economists rely on laws as much as any other profession., Economic theory rests almost entirely on speculation about how consumers behave.

Back

The way markets respond to a change in price is highly predictable.

Front

Based on this diagram, which of the following situations reflects the substitution effect resulting from a special sale on Z-Ball brand golf balls? Options: The price of Z-Balls increases when the demand for them increases. The price of Z-Balls decreases when the demand for them increases. Consumers reject the Z-Balls, assuming they are an inferior product. Consumers purchase Z-Balls rather than the brand they normally buy.

Back

Consumers purchase Z-Balls rather than the brand they normally buy.

Front

How many slices of pizza per day would you expect a pizzeria in this market to sell if it were pricing its slices at $3.50?

Back

175

Front

Jenna is a plant lover. She could afford to buy a new houseplant every three months. Something happened in Jenna's life that caused her demand curve for plants to shift to the right. Using the graphs below, identify which of the following is the most likely explanation for the result. Options: Jenna has decided that she has to sell some of her houseplants., Jenna has switched from buying plants to buying knickknacks, Jenna now buys a new houseplant every six months., Jenna now buys a new houseplant every month.

Back

Jenna now buys a new houseplant every month.

Front

Which of the following is the likely result of a successful advertising campaign for an electronic game? a supply curve that has shifted to the right, a supply curve that has shifted to the left, a demand curve that has shifted to the right, a demand curve that has shifted to the left

Back

a demand curve that has shifted to the right

Front

A wildfire has put a major lumber producer out of business. How might an economist show one consequence of this in a graph?

Back

a supply curve that has shifted to the left

Front

According to the NBER study, what will happen if a major supplier of oil cuts production, causing the price of gasoline to increase greatly?

Back

Gasoline consumption will decrease by a small amount.

Front

What can you say about the Larvines' demand for meals at the Japanese restaurant?

Back

It is elastic; a small increase in price resulted in a large decrease in consumption.

Front

Which of the following price / output points would be found on the market supply schedule used to create the market supply curve below? $2.00 / 150, $5.00 / 300, $5.00 / 3,000, $2.00 / 2,000

Back

$5.00 / 3,000