Download NAME - Jamestown Public Schools

NAME_______________________
DATE_______________________
E
Government & Economics
Ch 3 4 5
Matching
_____1. The amount of a particular good or service that a consumer is willing and able to
buy at each particular price
_____2. A product that can be used to replace the purchase of similar products when
prices rise.
_____3. This exists when a small change in a good’s price has a large impact on the
quantity demanded.
_____4. Examples of these include rent, interest on loans, and salaries
_____5. A product that is commonly used with other products.
_____6. Exists when even a large change in price has little impact on the quantity
demanded
_____7. Examples of these include wages and raw materials
A. elastic demand
B. variable costs
E. inelastic demand
F. fixed costs
C. substitute good
D. income effect
G. quantity demanded H. complementary good
_____8. A demand curve only displays a “snapshot” of a market because
1. prices or products often increase
2. it is based on a demand schedule
3. it represents a specific time period
4. economists cannot make long-term projections
_____9. As income rises, demand for goods
1. decreases
3. remain stable
2. increases
4. fluctuates
_____10. Which direction will the demand curve shift if consumers’ income rise?
1. to the right
3. upward
2. to the left
4. downward
_____11. A products’ demand elasticity is affected by
1. whether or not it has available substitutes
2.whether or not it is a necessity
3. the portion of the consumers’ income that the product’s cost represents
4. all of the above
_____12. The nonprice determinants of demand include
1. income, prices of related goods, demand curves
2. consumer tastes, market size, and supplier expectations
3. demand curves, market size, and income
4. market size, income, and prices of related goods
_____13. If a price of resources fall, supply will
1. increase
3. fluctuate
2. decrease
4. stabilize
_____14. Which of the following is a government tool that can cause the supply of goods
and services to shift?
1. taxes
3. regulations
2. subsidies
4. all of the above
_____15. Nonprice determinants of supply include
1. supplies curves, government tools, & producer expectations
2. prices of resources, government tools, & competition
3. prices of resources, technology, & profit
4. prices of related goods, taxes, & supply schedules
_____16. Competition in a market tends to
1. decrease supply
3. increase supply
2. cause supply to fluctuate
4. have little effect on supply
_____17. According to the law of ______, producers will supply fewer goods at lower
prices and more goods at higher prices
1. depreciation
3. supply
2. demand
4. subsidation
_____18. Gold is an example of a good that has
1. negative returns
3. elastic supply
2. inelastic supply
4. diminishing returns
_____19. A business makes a profit when its costs of production are less then its
1. overhead
3. revenues
2. variable costs
4. fixed costs
_____20. Which of these is not a determinant of supply?
1. government subsidies
3. consumer expectations
2. prices of resources
4. competition
_____21. The lessening in value of capital goods is called
1. depreciation
3. overhead
2. marginal costs
4. revenues
_____22. When a surplus exists in a market, price is
1. above equilibrium
3. higher than quantity supplied
2. below equilibrium
4. lower than quantity supplied
_____23. The minimum wage is an example of a
1. price floor
3. black market
2. price ceiling
4. rationing system
_____24. Which of these is not an example of a limitation of the price system?
1. pollution created by manufacturing
2. national defense
3. natural disasters cause instable in prices
4. the efficiency of the price system
_____25. Which of the following is an example of a public good?
1. malls
3. college education
2. national defense
4. housing
_____26. What is the main form of communication between producers and consumers in
a free-enterprise market?
1. information
3. the media
2. prices
4. market failure
_____27. If a company lowers the price of a good with elastic demand, there will be a
1. slight fall of demand for that product
2. large increase in the quantity demanded
3. large increase in the quantity supplied
4. slight rise in the demand for that good
_____28. The law of ________ states that an increase in a good’s price causes a decrease
in the quantity demanded
1. depreciation
3. supply
2. demand
4. subsidation
_____29. A person not receiving as much satisfaction out of eating their 7th hot dog as
they did eating their 1st hot dog is an example of
1. depreciation
3. rationing
2. diminishing marginal utility
4. elastic supply
_____30. Which of the following is not a determinant of demand?
1. Income
3. Market size
2. Producer expectations
4. Prices of related goods
_____31. What causes producers to vary their supply of goods & services by wanting to
supply more at higher prices?
1. depreciation 2. variable costs 3. profit motive 4. price floors
_____32. Which of the following terms refers to the amount of money consumers have
available to spend on products?
1. marginal power
3. income effect
2. purchasing power
4. substitution effect
_____33. Rent is an example of
1. fixed costs
2. marginal costs
3. variable costs
4. functional costs
_____34. Workers wages are an example of
1. fixed costs
3. variable costs
2. marginal costs
4. functional costs
_____35. Any change in a consumer’s purchasing power resulting from a change in price
is called _______?
_____36 & 37. Give 2 reasons why oil prices have risen so much the last 3 months.
_____38 & 39. Name an advantage and a disadvantage to the Universal Serial Bus.
_____40. What reason did the CEO of Hardees give for their release of such a calorie and
fat laden sandwich such as the Monster Thickburger?