Economics - Unit 2 Test - Loudoun County Public Schools



Name: Period: Unit 2 Test (Ch. 5-7) Study GuideKnow the reasons for each of the shifts below.S1 SDS1SDSDSDD1D1What does the law of demand state? _____________________________________________________________________________________________What is the definition of demand? _____________________________________________________________________________________________What does the law of supply state? _____________________________________________________________________________________________What is the definition of supply? _____________________________________________________________________________________________The price at which supply and demand are in balance is known as What is elasticity? Usually for consumers a product or service is elastic if? _______________________________________________________________Usually for consumers a product or service is inelastic if? _______________________________________________________________When demand exceeds supply, ais created.When supply exceeds demand, ais created.In what ways can the government exert control over supply and demand? _____________________________________________What is the formula of how to find a shortage? ______________________________What is the formula of how to find a surplus? _________________________________Draw and find a shortage. Draw and find a surplus.3794125819150016510013906500Draw a price ceiling. Draw a price floor.0200025003702685317500What is the effect on the market of the government setting a price control of minimum wage? __What is the effect on the market of the government setting a price control of rent control? ______________________What are the four questions/criteria used in determining the market structure of a specific market? Fill in the Chart Below # of ProducersSimilarity of ProductsEase of EntryControl over PricesPerfect CompetitionMonopolistic CompetitionOligopolyMonopolyGive an example of the following: ExamplePerfect CompetitionMonopolistic CompetitionOligopolyMonopolyWhy doesn’t the market provide public goods? What is collusion? Collusion?occurs when producers get together and make agreements on production levels and pricing.What is an externality? ___Example of a positive externality: _________________________________________________________________________Example of a negative externality: ________________________________________________________________________ ................
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