Download Pierson Econ CH 6 - Hillsdale Community Schools

Pierson Econ CH 6
Question
1. A market in equilibrium that sees an increase in supply where quantity
supplied exceeds demand, will see a _____ in price. 123-124
2. When buyers will purchase exactly as much as sellers are willing to sell, what
is the condition that has been reached? 125-126
3. The point at which quantity supplied and quantity demanded are the same.
125
4. When quantity supplied and quantity demanded are not the same in a
market. 126
5. When quantity demanded is more than quantity supplied there is excess
_____ in the market. 126
6. The kind of goods governments generally place price ceilings on are those
that are essential but too _____ for some consumers. 128-130
7. A maximum amount that can be legally charged for a good or service. 128
8. When quantity supplied is more than quantity demanded there is an excess
_____. 128
9. A minimum price for a good or service. 128
10. The price ceiling that was used to control the price of housing in New York
City and other cities was called _____ _____. 129-130
11. Rent control is a type of price _____. 129
12. When wages are set above the equilibrium level by law firms will employ
_____ workers than they would at the equilibrium wage. 130-131
13. What is the name of the smallest amount that can legally be paid to most
workers for an hour of work? 130-131
14. When the supply of a nonperishable good is greater than the consumer
wants to buy either the good remains unsold or the price _____. 133-134
15. A surplus is a situation in which quantity supplied is _____ than quantity
demanded. 134
16. Computer printers are an example of a good whose price goes _____
because of improvements in technology. 134
17. A _____ will develop when the market price is below the equilibrium price.
136
18. Fads often lead to shortages because _____ increases so quickly that time
is needed for the quantity supplied and price to increase to reach a new
equilibrium point. 136
Answer
19. Situation in which quantity demanded is greater than quantity supplied. 136
20. The financial and opportunity costs consumers pay when looking for a good
or service. 136
21. A sudden lack of goods. 141
22. A system of allocating scarce goods and services using some criteria other
than price. 141
23. The U.S. government used _____ for some foods during World War II to
guarantee each civilian a minimum standard of living in wartime. 142
24. A situation in which the market can behave _____ is when consumers do not
have enough information to make good choices. 142
25. What is it called when the government uses some tool other than money to
allocate goods? 142
26. Which of these is most likely to lead directly to a black market? A supply
shock or rationing? 142
27. Costs of production that affect people who have no control over how much of
a good is produced. 144
Created by: pierson on 2013-05-06