Survey
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
Download Ch 4-6 Econ Study Guide
Document related concepts
Transcript
Unit II Test (Chapters 4-6) Chapter 4: Demand * Define the following… - Demand: - Demand curve: - Demand schedule: - Law of demand: - Elasticity of demand: - Market demand schedule: * If Product A is a substitute for Product B, what happens to Product A when the price of Product B increases? - When the price of Product B decreases? * Explain how prices affect ones income. * What cause the quantity demanded for slices of pizza to increase from 200 slices per day to 250 slices per day? * What happens on the demand curve as the price increases? * What happens on the demand curve as the price Decreases? * Explain the difference between elastic and inelastic demand. * Explain the difference between a normal good and an inferior good. * Draw a generic inelastic and elastic demand curve. Which one increases total revenue with a price increase? Which one decreases total revenue with a price increase? Inelastic Elastic Chapter 5: Supply * Define the following… - Elasticity of supply: - Market supply curve: - Market supply schedule: - Supply: - Supply curve: - Supply schedule: * How do rising prices encourage suppliers? * What happens to the elasticity of supply over time? * What will the addition of new workers do to production? * Identify where marginal product of labor occurs * Identify where increasing marginal returns take place * Identify where diminishing marginal returns occurs * List the fixed costs: * List the variable costs: - * Setup and draw a supply curve and label it S1, then draw a new supply curve and label it S2 for the following situations: - decrease of rent - decrease in the cost of machinery repair - decrease in property taxes - decrease in raw materials - decrease in worker’s salaries Chapter 6: Prices * Define the following… - Disequilibrium: - Equilibrium: - Price ceiling: - Price floor: - Shortage: - Surplus: * When is the market in equilibrium? * When is the market in disequilibrium? * Explain a surplus: - What is greater than what? - What happens to price? * What happens to quantity demanded? * What happens to quantity supplied? * Explain a shortage: - What is greater than what? - What happens to price? * What happens to quantity demanded? * What happens to quantity supplied? * Who establishes price in a free market economy? In a command economy? * Explain the difference between a price ceiling and a price floor * How do prices act as a signal? -
