Interpreting Graphs
EOCT Prep
In the market seen here, the shift
from P, Q to P1, Q1 was the
result of which effect?
25%
1.
2.
3.
4.
25%
25%
2
3
25%
decreased
supply
increased supply
increased
demand
decreased
demand
1
4
In the market seen here, a
government-mandated price of
$5 would cause?
25%
1.
2.
3.
4.
25%
25%
2
3
25%
price floor with a surplus of
40 widgets
price ceiling with a surplus
of 20 widgets
price floor with a shortage of
20 widgets
price ceiling with a shortage
of 40 widgets
1
4
Which term belongs in the
blank rectangle in the center
of the diagram?
25%
1.
2.
3.
4.
25%
25%
2
3
25%
government
resource market
money
goods and services
1
4
Fastest Responders
Seconds
Participant
Seconds
Participant
Which describes what has
happened in the graph?
25%
1.
2.
3.
4.
25%
25%
2
3
25%
An increase in demand has
caused a decrease in equilibrium
price.
Demand has increased, causing
an increase in equilibrium quantity.
The increase in supply has caused
an increase in equilibrium quantity
Supply has decreased, causing an
increase in equilibrium price.
1
4
Using the market graph seen here,
what will happen over time if Widgets
are initially priced at $5?
25%
1.
2.
3.
4.
Competition will drive the price
of widgets higher.
Demand will increase to meet
the equilibrium quantity of 120.
Market forces will push the
price towards $3.
Supply will decrease because
fewer people will buy widgets.
1
25%
25%
2
3
25%
4
Arrows 1 and 2 on this
circular flow diagram
represent
25%
1.
2.
3.
4.
25%
25%
2
3
25%
money flow
prices
Taxes
goods and services
1
4
If the producer in the PPC seen here
is producing at point X, moving to
point Z would mean an opportunity
cost of
25%
1.
2.
3.
4.
25%
25%
2
3
25%
20 gallons of milk
7 pounds of cheese
3 pounds of cheese
10 gallons of milk
1
4
Fastest Responders
Seconds
Participant
Seconds
Participant
Which statement is true concerning absolute advantage?
Use the data below to answer the question.
JAPAN
Cars
25
Computers 100
1.
2.
3.
4.
U.S.A.
60
45
Japan has absolute advantage
in the production of cars.
Japan has absolute advantage
in the production of both goods
Japan has no absolute
advantage in this scenario.
Japan has absolute advantage
in the production of computers.
25%
1
25%
25%
2
3
25%
4
Which BEST explains the shift
seen in the market graph here?
25%
1.
2.
3.
4.
25%
25%
2
3
25%
cheaper resource prices for
drink producers
bankruptcies by several drink
producers
decreased preference for
energy drinks
increased government taxes on
drink producers
1
4
In the picture below, a price
of .40 represents which
situation?
25%
1.
2.
3.
4.
25%
25%
2
3
25%
A shortage because the price is
below equilibrium.
A shortage because the price is
above equilibrium
A surplus because the price is
above equilibrium.
A surplus because the price is
below equilibrium.
1
4
Which arrows on this diagram would
represent the transaction between Joe
who rents his office to Homework Inc., a
company that provides tutoring services?
25%
1.
2.
3.
4.
25%
25%
2
3
25%
5,6
2,3
4,7
1,2
1
4
In the graph seen here,
equilibrium is represented by
which combination of price
and quantity?
25%
1.
2.
3.
4.
25%
25%
2
3
25%
price of $5, quantity of 80
price of $5, quantity of 120
price of $3, quantity of 80
price of $3, quantity of 100
1
4
Which statement is correct
concerning the PPC seen
here?
25%
1.
2.
3.
4.
25%
25%
2
3
25%
Producing at point X is inefficient
because the farmer loses cheese.
Point Z is unsustainable because it
requires more resources that the
farmer has.
Moving from Z to X incurs an
opportunity cost of 10 lbs of cheese
Moving from Z to X incurs an
opportunity cost of 7 lbs of cheese.
1
4
Based on the PPF, which is
true about countries A and
B?
25%
1.
2.
3.
4.
25%
25%
2
3
25%
Country B has more resources in
general
Country A has fewer resources to
make fish, but more resources to make
coconuts
Country A has more resources in
general
Country B has fewer resources to
make fish, but more resources to make
coconuts
1
4
Arrows 4 and 7 on this
circular flow diagram
demonstrate
25%
1.
2.
3.
4.
25%
25%
2
3
25%
taxes
goods and services flow
prices
money flow
1
4
Which term belongs in the
empty box near the bottom
of the picture?
25%
25%
25%
2
3
25%
1. stock market
2. goods and
services
3. taxes
4. resource market
1
4
Fastest Responders
Seconds
Participant
Seconds
Participant
Which statement is true
about this production
possibilities curve?
25%
1.
2.
3.
4.
25%
25%
2
3
25%
Moving from point X to point Y
incurs an opportunity cost of
guns.
This country does not have to
give up any guns to produce
more butter
At point X, this country is
producing more butter than guns.
Moving from point X to point Y
incurs and opportunity cost of
butter.
1
4
Participant Leaders
Points
Participant
Points
Participant