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SOPHIA ECON102 Unit 1 Challenge 2 Latest 2022/SOPHIA ECON102 Unit 1 Challenge 2 Latest 2022
Question 1
Movements along the supply curve are a result of changes in __________.
Question 2
When a good is unit elastic, the absolute value of the elasticity is ___________.
Question 3
In 2007, the government attempted to end inflation by enforcing a price freeze on basic commodities such as corn, sugar and eggs. This led to runs on grocery stores and other places that sold such items, since in some cases the prices were rolled back to almost 50% of what they had been. A shortage occurred because people rushed to stock up on these items as much as they could.
In this example, the freeze on prices is known as a government enforced __________, with businesses forbidden to charge more than the price set by the government. These government enforced price constraints are binding because they are lower than the __________.
Question 4
When the government pays money to encourage production, this is known as a __________.
Question 5
The price for borrowing money is known as the __________.
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- Section: Examinations
- Made on: 27-12-2022
- Type: .pdf
- Pages: 3
- Language: English
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