Demand, Supply, Equilibrium Created by Educational Technology Network. www.edtechnetwork.com 2009

Command Demand Supply Equilibrium Perfect Competition 10 20 30 40 50

Question 1 - 10 In a centrally-planned economy, this answers the three economic questions.

Answer 1 – 10 What is the government?

Question 1 - 20 Social and political philosophy based on belief that democratic means should be used to distribute wealth evenly throughout a society.

Answer 1 – 20 What is socialism? Bonus 10: What is the difference between communism and socialism?

Question 1 - 30 The author of The Communist Manifesto, this economist is considered the father of communism.

Answer 1 – 30 Who is Karl Marx?

Question 1 - 40 This advantage of centrally-planned economies allows them to focus all of their production on one particular industry as necessary.

Answer 1 – 40 What is the concentration of production? Bonus 10: This has also occurred in U.S. History. Give the example in class we used to demonstrate this.

Question 1 - 50 This is the primary disadvantage of command economies.

Answer 1 – 50 What is concentration of production? Bonus -20 to group of your choice: What example did we use in class to demonstrate this weakness?

Question 2 - 10 The law of demand.

Answer 2 – 10 What is as price increases, quantity demanded decreases? What is as price decreases, quantity demanded increases?

Question 2 - 20 “Where income stays the same, prices increase” describes this effect.

Answer 2 – 20 What is the income effect? Bonus 10: What does the income effect do in terms of your ability to purchase goods? 1 million points because I feel like it.

Question 2 - 30 “When a good becomes too expensive, the consumer will choose an alternative” describes this effect.

Answer 2 – 30 What is the substitution effect? Bonus 10: Give an example.

Question 2 - 40 Using the demand curve on the board, if it turns out that people start to hate Justin Bieber, we can expect the entire demand curve to shift...

Answer 2 – 40 What is left? Bonus 10: Name the cause of this change in demand. Bonus 10: Name another cause of change in demand.

Question 2 - 50 Using the graph on the board, if you were to get a raise at work, your demand for normal goods would cause the entire demand curve to shift...

Answer 2 – 50 What is right? Bonus 10: What is a normal good? Bonus 10: What is an inferior good?

Question 3 - 10 The law of supply.

Answer 3 – 10 What is as price increases, the quantity supplied increases. What is as price decreases, the quantity supplied decreases.

Question 3 - 20 Oil is used to make plastics. The price of oil increases. We can expect that the cost of producing plastics would _____ and shift the supply curve ____.

Answer 3 – 20 What is increase, and what is shift left? Bonus 10: Name this change in supply.

Question 3 - 30 Businesses see a particular industry making a profit and decide to enter the market. Supply would _____.

Answer 3 – 30 What is increase? Bonus 10: Name this change in supply.

Question 3 - 40 The federal government places a tariff on Dutch chocolate. Supply of Dutch chocolate would ____ and cause the supply curve to shift ____.

Answer 3 – 40 What is decrease, and shift left?

Question 3 - 50 A new technology makes iPhones cheaper to make. This would cause supply to _____.

Answer 3 – 50 What is increase?

Question 4 - 10 The point at which quantity demanded and quantity supplied come together.

Answer 4 – 10 What is equilibrium?

Question 4 - 20 In the equilibrium graph on the board, what does line A represent?

Answer 4 – 20 What is a price ceiling? Bonus 10: What do price ceilings cause? Bonus 10: How do we solve what price ceilings cause? Bonus 10: Give an example of a price ceiling.

Question 4 - 30 In the equilibrium graph on the board, what does line B represent?

Answer 4 – 30 What is a price floor? Bonus 10: What do price floors cause? Bonus 10: How do we solve what price floors cause? Bonus 10: Give an example of a price floor.

Question 4 - 40 According to this graph, this is the price per labor given 4 million workers.

Answer 4 – 40 What is $4.50 per hour? Bonus 10: How are the wages of workers found generally according to this graph?

Question 4 - 50 According to this graph, this happened to equilibrium when supply decreased. Think price and quantity.

Answer 4 – 50 What is price increased and quantity decreased?

Question 5 - 10 Perfect competition has ____ of competitors.

Answer 5 – 10 What is lots?

Question 5 - 20 Perfect competition has identical products, true or false.

Answer 5 – 20 What is true? Bonus 10: What is the name for a product that is the same regardless of who sells it or where it is sold?

Question 5 - 30 Perfect competition is difficult to enter into, true or false?

Answer 5 – 30 What is false?

Question 5 - 40 Producers in perfect competition have lots of control over price, true or false.

Answer 5 – 40 What is false? Bonus 10: Why do perfect competitors have no control over price?

Question 5 - 50 A market structure in which a large number of firms all produce the same product.

Answer 5 – 50 What is perfect competition?