Answers2102320-Economics HONORS - Edgenuity TeacherElasticity and Incentives

Elasticity and Incentives — Unit test Answers

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1
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Both a demand curve and a demand schedule show how

A
prices affect consumer demand.
B
consumer demand affects income.
C
prices affect complementary goods.
D
consumer demand affects substitute goods.
2
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A chart that shows the connection between consumer demand and price is a

A
market schedule.
B
market curve.
C
demand curve.
D
demand schedule.
3

increasesdecreasesstays the same

A
increases
B
decreases
C
stays the same
4

In which way do producers try to differentiate themselves in monopolistic competition?

p
price
a
advertising
p
product features
i
image
5

A possible result of disequilibrium is

e
excess demand.
l
lower demand.
f
fixed prices.
s
stable availability.
6

elasticityqualitytimequantity

A
elasticity
B
quality
C
time
D
quantity
7

The highest amount a landlord can charge for rent is an example of

a
an incentive.
a
a price floor.
a
a price ceiling.
a
an elastic service.
8

Equilibrium occurs when supply and demand coordinate to

A
set excess demand.
B
set prices and production.
C
maintain excess supply.
D
raise prices and production.
9

Which statements correctly explain price floors and price ceilings? Choose four answers.Ineffective price floors tend to be too high.Ineffective price ceilings tend to be too low.Price floors help producers by raising prices.Price ceilings help consumers by lowering prices.Effective price floors are set above equilibrium.Effective price ceilings are set below equilibrium.

I
Ineffective price floors tend to be too high.
I
Ineffective price ceilings tend to be too low.
P
Price floors help producers by raising prices.
P
Price ceilings help consumers by lowering prices.
E
Effective price floors are set above equilibrium.
E
Effective price ceilings are set below equilibrium.
10

The graph shows a supply curve.Which events could cause the change in supply shown on this graph? Check all that apply.A producer goes out of business.A natural disaster causes production to drop.A new company joins the marketplace.A company begins to produce more goods.A resource needed to produce more of the good has became scarce.

Question illustration
A
A producer goes out of business.
B
A natural disaster causes production to drop.
C
A new company joins the marketplace.
D
A company begins to produce more goods.
E
A resource needed to produce more of the good has became scarce.
11

The graph is a marginal cost curve that compares expenses for producing apple pies.According to the graph, the marginal cost begins to increase when the producer makes

Question illustration
t
two pies.
t
three pies.
f
four pies.
f
five pies.
12

most likely

Question illustration
T
The marginal cost will most likely decrease to $1.00
T
The marginal cost will most likely increase to $2.00
T
The marginal revenue will most likely decrease to $8.00.
T
The marginal revenue will most likely increase to $12.00.
13

most likely

T
The store owner would most likely raise the price of the spring jeans to encourage producers.
T
The store owner would most likely lower the price of the spring jeans to encourage producers.
T
The store owner would most likely raise the price of the spring jeans to encourage consumers.
T
The store owner would most likely lower the price of the spring jeans to encourage consumers.
14

Motherboards, Inc., manufactures computer parts. The company’s total revenue is

t
the money the company earns after paying all of its production costs.
t
the total wages the company pays workers in its factories and stores.
t
the amount of money the company earns from selling an individual part.
t
the amount the company receives from the sale of all of its computer parts.
15

A monopoly is a market that has

A
few competing businesses.
B
many sellers of the same item.
C
many sellers of a variety of products.
D
a single supplier of a good or service.
16

Producers hoping to earn profits supply goods and services to

A
debtors.
B
themselves.
C
competitors.
D
consumers.
17

Which scenario is an example of market saturation?

A
The single coffee shop in town usually has a long line of customers and tends to stay busy during business hours.
B
There are three shoe stores on one block in town, and they have trouble finding customers and making a profit.
C
A second health club will open because the only health club in town is too crowded to accept new customers.
D
It can be difficult to get reservations at the only upscale Ethiopian restaurant in town, and it is best to call in advance.
18

The graph shows a point of equilibrium.If quantity demanded exceeds quantity supplied, what most likely needs to happen to achieve equilibrium?

Question illustration
T
The supply needs to increase
T
The price needs to decrease
T
The price needs to increase
T
The demand needs to increase
19

What is the difference between marginal cost and marginal revenue?

A
Marginal cost is the money a producer earns from selling one more unit, while marginal revenue is the money a producer pays for making one more unit.
B
Marginal cost is the money a producer pays for making one more unit, while marginal revenue is the money a producer earns from selling one more unit.
C
Marginal cost is the money a producer actually earns from selling more units, while marginal revenue is the money a producer might earn from one more unit.
D
Marginal cost is the money a producer might earn from one more unit sold, while marginal revenue is the money a producer will earn from one more unit.
20

What does elasticity measure in economics?

h
how the amount of a good changes when the producer hires more employees
h
how the amount of a good changes when the producer uses new materials
h
how the amount of a good changes when its price goes up or down
h
how the amount of a good changes when its distribution expands

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