Title: QUIZ: Equilibrium -- Economic Lowdown Video Series
Course: Andria Testing FRE2 > Section: Equilibrium -- Economic Lowdown Video Series

Q: In a market economy, choices about what goods and services will be produced and at what prices they will be sold are made by
- the Federal Agency on Production and Prices (FAPP).
- consumers and producers.
- The Federal Reserve.
- Congress.
A: consumers and producers.

Q: The Law of Demand states that
- as price increases, quantity demanded increases.
- as price increases, quantity demanded decreases.
- price changes have no effect on quantity
- price changes shift the demand curve left or right. 
A: as price increases, quantity demanded decreases.

Q: The Law of Supply states that
- as price increases, quantity supplied decreases.
- as price increases, quantity supplied increases.
- price changes have no effect on quantity.
- price changes shift the supply curve left or right. 
A: as price increases, quantity supplied increases.

Q: At market equilibrium, the
- quantity of a good buyers are willing to buy is greater than the quantity sellers are willing to sell.
- quantity of a good sellers are willing to sell is greater than the quantity buyers are willing to buy.
- quantity of a good buyers are willing to buy is the same quantity that sellers are willing to sell.
- supply of a good is equal to the demand for the good.
A: quantity of a good buyers are willing to buy is the same quantity that sellers are willing to sell.

Q: A decrease in the demand for a good causes a
- temporary shortage of that good.
- temporary surplus of that good
- permanent shortage of that good.
- permanent surplus of that good.
A: temporary surplus of that good

Q: A decrease in the supply for a good causes a
- temporary surplus of that good.
- temporary shortage of that good.
- permanent shortage of that good.
- permanent surplus of that good.
A: temporary shortage of that good.

Q: An increase in demand shifts the demand curve to the right resulting in a new equilibrium with a
- higher price and a lower quantity.
- higher price and a higher quantity.
- lower price and lower quantity.
- lower price and higher quantity. 
A: higher price and a higher quantity.