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Equilibrium
Price ceilings/floors
Characteristics of a price system
Prices vs. Rations
Misc.
100
Define equilibrium.
What is where demand equals supply?
100
With a price ceiling, is there a shortage or surplus?
What is a shortage?
100
This describes a market that favors neither the producer nor the consumer.
What is Neutral?
100
How is a price system more fair than a ration system?
People are rewarded for hard work and lose privileges for poor work.
100
Define Standard of Living.
What is quality of life based on ownership of necessities and luxuries that make life easier
200
If the supply curve moves to the right, what happens to the equilibrium price?
What is goes down?
200
A price floor creates this...
What is a surplus?
200
This describes a market that can run itself.
What is market driven?
200
What is an advantage of a ration system?
Everyone gets their fair share of goods.
200
If a countries has a 32% literacy rate, does it have a high or low standard of living?
What is low.
300
If the demand increases, what happens to the the equilibrium price?
What is goes up?
300
The milk industry has a price floor. Therefore there is a ____ of milk. What did the milk industry do to move the price closer to equilibrium?
Surplus; Got Milk Ads, Studies on how milk helps you lose weight
300
This describes a market where prices change with conditions.
What is flexible?
300
Ration systems usually occur when there is a _________.
Shortage.
300
When producers have a surplus of a good, what do they do to the price?
They lower the price.
400
If the producer has to pay less in taxes, what would happen to the equilibrium price?
What is goes down/decreases?
400
Price ceilings benefit ______. Price floors benefit _______.
Price ceilings benefit consumers; price floors benefit producers.
400
This describes a market where prices will adjust until the maximum number of goods and services are produced.
What is efficient.
400
During what time period to America utilize a ration system?
What is during WWII?
400
A price floor is located __________ equilibrium price.
Above
500
What happens to the equilibrium price in the following situation: Buyers decide that a product is no longer in style.
What is equilibrium price decreases?
500
In order to overcome the shortage of gasoline, what might be a solution?
What is drill more in the United States?
500
What type of economy does the United States have?
What is a mixed economy?
500
What are the three disadvantages of a ration system?
What is "its not fair, it requires high administrative costs, and workers lack incentive"?
500
Shortages signal producers to do what?
Raise prices.