Answers2102320-Economics HONORS - Edgenuity TeacherElasticity and Incentives

Elasticity and Incentives Answers

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1
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Price controls on goods can be set by

A
consumers.
B
economists.
C
governments.
D
producers.
2
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In economics, if a good is inelastic,

A
consumers have lost an interest in purchasing it.
B
producers have lost an interest in manufacturing it.
C
its supply or demand is too sensitive to price changes.
D
its supply or demand is not sensitive to price changes.
3

In the market, actions known as incentives affect

p
producers only.
c
consumers only.
c
consumers or producers.
n
neither consumers nor producers.
4

The lowest amount a manufacturer can pay factory workers is an example of

A
an incentive.
B
a price floor.
C
a price ceiling.
D
an elastic service.
5

Goods that are considered to be needs tend to be

A
elastic when the price changes.
B
inelastic when the price changes.
C
elastic when the supply changes.
D
inelastic when the supply changes.
6

The graph shows the price of a good compared to the quantity demanded and the quantity supplied.On this graph, what does the green arrow represent?

Question illustration
a
an ineffective price floor set above equilibrium causing a surplus.
a
an effective price floor set below equilibrium causing a shortage.
a
an ineffective price ceiling set above equilibrium causing a surplus.
a
an effective price ceiling set below equilibrium causing a shortage.
7

Which is an example of a negative incentive for producers?

A
a chance to make more money
B
a special sale at a department store
C
a coupon clipped from a newspaper
D
a sharp increase in production costs
8

A pair of stylish sneakers could be considered a because it is not a necessity.

Answer:

want

9

Which is an example of a product that is considered a need?

A
breakfast food
B
music player
C
sports equipment
D
video game
10

The government has set a price floor on bread. Manufacturers cannot sell loaves for less than $5.00, which is a dollar above the market price. What will most likely result from this price control?

T
The quantity demanded for bread will decrease, and the quantity supplied will increase.
T
The quantity demanded and quantity supplied for bread will increase.
T
The quantity demanded for bread will increase,and the quantity supplied will decrease.
T
The quantity demanded and quantity supplied for bread will decrease.
11

Which statement best explains how elasticity and incentives work together?

A
An elastic good, such as a game, is more likely to respond to incentives.
B
An inelastic good, such as a game, is more likely to respond to incentives.
C
An elastic good, such as a game, is less likely to respond to incentives.
D
An inelastic good, such as a game, is less likely to respond to incentives.
12

The government has set a price floor on bread. Manufacturers cannot sell loaves for less than $5.00, which is a dollar above the market price. What will most likely result from this price control?

A
The quantity demanded for bread will decrease, and the quantity supplied will increase.
B
The quantity demanded and quantity supplied for bread will increase.
C
The quantity demanded for bread will increase,and the quantity supplied will decrease.
D
The quantity demanded and quantity supplied for bread will decrease.
13

On this graph, what does the green arrow represent?

Question illustration
A
an ineffective price floor set above equilibrium causing a surplus.
B
an effective price floor set below equilibrium causing a shortage.
C
an ineffective price ceiling set above equilibrium causing a surplus.
D
an effective price ceiling set below equilibrium causing a shortage.
14

The graph shows the price of green tea compared to the amount supplied by producers.What does this graph suggest about green tea? Choose two answers.

Question illustration
A
Green tea is elastic in terms of supply.
B
Green tea is inelastic in terms of supply.
C
Green tea is neither elastic nor inelastic.
D
The supply of green tea changes sharply with the price.
E
The quantity supplied of green tea does not change sharply with the price.
15

In the market, actions known as incentives affect

A
producers only.
B
consumers only.
C
consumers or producers.
D
neither consumers nor producers.
16

A consumer might respond to a negative incentive by

A
purchasing more of the products.
B
buying the good at a cheap price.
C
receiving a discount.
D
decreasing use of the product to save money.
17

Which statement best describes incentives?

A
Incentives are mostly positive.
B
Incentives are mostly negative.
C
Incentives can be positive or negative.
D
Incentives are neither positive nor negative.
18

Which is an example of a product that is considered a need?

A
breakfast food
B
music player
C
sports equipment
D
video game
19

Which is an example of a negative incentive for producers?

A
a chance to make more money
B
a special sale at a department store
C
a coupon clipped from a newspaper
D
a sharp increase in production costs

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