Term
All economic are about
a. how to make money
b. what to produce
c. how to cope with scarcity
d. how to satisfy all our wants |
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Definition
| c. how to cope with scarcity |
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Term
In broad terms the difference between micro and macro eco is that
a. they use different sets of tools and ideas
b. microecoonomics studies decisions of individual people and firms and macroeconomics studies the entire national economy
c. macroeconomics studies the effects of government regulation and taxes on the price of individual goods and services whereas microeconomics does not
d. microeconomics studies the effects of government taxes on the national unemployment rate |
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Definition
| b. microeconomics studies decisions of individual people and firms and macroeconomics studies the entire national economy |
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Term
The production possibilities frontier represents
a. the amximum amount of labor and capital available to society
b. combinations of goods and services amont which consumers are indifferent
c. the maximum levels of production that can be attained
d. the maximum rate of growth of capital and labor in a country |
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Definition
| c. the maximum lavels of production that can be attained |
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Term
The fact of increasing opportunity costs means that a production possibilities frontier will
a. be a straight line
b. reach a maximum and then gradually decrease
c. bow outward
d. shift outward over time |
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Definition
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Term
Marginal cost is
a. the opportunity cost of producing one more unit of a good and increases as production of the good increases.
b. the opportunity cost of producing one more unit of a good and decreases as production of the good increases.
c. the benefit from consuming one more unit of a good and increses as consumption of the good increases.
d. the benefit from consuming one more unit of a good and decreses as consumption of the good increases |
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Definition
| a. the opportunity cost of producing one more unit of a good and increases as production of the good increases |
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Term
A marginal cost curve
a. is upward sloping
b. show that as more of a good is produced, opportunity costs of producing another unit increase
c. is bowed inward so that its slope can become negative.
d. Both answers A and B are correct |
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Definition
| d. Both answers A and B are correct |
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Term
Marginal benefit is
c. the benefit from consuming one more unit of a good and increases as consumtion of the good increases.
d. the benefit from consuming one more unit of a good and decreases as consumption of the good increases |
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Definition
| d. the benefit from consuming one more unit of a good and decreases as consumtion of the good increases |
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Term
As you consme more and more of a good
a. the marginal benefit increases
b. the marginal benefit decreases
c. the marginal benefit increses and decreases depending where you are or are not on the PPF.
d. the price of the good falls. |
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Definition
| b. the marginal benefit decreases |
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Term
Opportunit cost is expressed in a production possibilities frontier (PPF) by
a. a movement form the region within the PPF to a point of the PPF
b. a movement from the region within the PPF to the region outside of the PPF
c. a movement from the region outside of the PPF to a point of the PPF
d. a movement along the PPF where to gain more of one good it is necessary to give some of another good |
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Definition
| d. a movement along the PPF where to gain more of one good it is necessary to give some of another good |
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Term
In the production of goods and services, tradeoffs exist because
a. not all prodction is efficient
b. society has only a limited amount of productive resources
c. buyers and sellers often must negotiate prices
d. human wants and needs are limited at a particular point in time. |
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Definition
| b. society has only a limited amount of productive resources |
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Term
Which of the two equations represents and demand curve?
P= 15- Q
P= 9 + 2Q
a. equation 1
b. equation 2
c. connot determine from the provded information
d. none of the above |
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Definition
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Term
Which of the two equations represents a supply curve?
p= 15-Q
p= 9 + 2Q
a. equation 1
b. equation 2
c. cannot determine from the provided information
d. none of the above |
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Definition
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Term
Given the two equations the equilibrium is given by
a. P= 15, Q= 10
b. P= 13, Q= 2
c. P=2, Q= 13
d. cannot determine from the provided information |
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Definition
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Term
If the market price is $11, then
a. the market is in equilibrium
b. the market is not in equilibrioum and the price is higher than the equilibrium price
c. the market is not in equilibrium and the price is lower than the equilibrium price.
d. the market is in equilibrium in terms of price, but not the terms of quantity |
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Definition
| c. the market is not in equilibrium and the pice is lower than the equilibrium price. |
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Term
You observe that the price of a good rises and the quantity decreases. These observations can be the result of the
a. demand curve shifting rightward
b. demand curve shifting leftward
c. supply curve shifting rightward
d. supply curve shifting leftward |
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Definition
| d. supply curve shifting leftward |
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Term
When supply decreases and demand does not change, the equilibrium quantity............ and the equilibrium price ............
a. increases; rises
b. decreses; falls
c. increses; falls
d. decreases; rises |
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Definition
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Term
If both demand and suply increase, what will be the effect on the equilibrium price and quantity?
a. both the price and the quantity will increase.
b. the quanity will increase but the price could either rise, fall, or remain the same
c. the price will fall but the quantity will increase
d. the price will rise but the quantity could either increase, decrease, or remain the same |
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Definition
| b. the quantity will increase but the price could either rise, fall, or remain the same. |
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Term
The equilibrium price will rise and the equilibrium quantity might increase, decrease, or stay the same when the
a. demand and the supply of a good both increase.
b. demand for a good increases and the supply of it decreases
c. demand for a good ecreases and supply of it increases.
d. demand the supply of a good both deacrease |
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Definition
| b. demand for a good increases and the supply of it decreases |
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Term
The equilibrium QUANTITY will decreases and teh rpice might rise, fall or stay the same when the
a. demand and the supply of a good both increase
b. demand for a good increases and the supply of it decreases.
c. demand for a good decreases and the suppply of it increases
d. demand and the supply of a good both decrease |
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Definition
| d. demand sand the supply of a good both decrease |
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Term
Which which of the following definitel leads to a fall in the equilibrium price
a. an increase in both demand and supply
b. a decrease in both demand supply
c. an increase in demand combined with a decrease in supply
d. a decrease in demand combined with an increse in supply |
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Definition
| d. a decrease in demand combined with an increase in suppply |
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Term
In a market, at the equilibrium price,
a. buyers are willing to a pay a highter price, but selers do not ask for hight price.
b. neither buyers nor sellers can do business at a better price
c. buyers are paying the minimum price they are willing to pay for any amount of output and sellers are charging the maximum price they are willing to charge for any amount of priduction
d. none of the above is true |
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Definition
| b. neither buyers nor sellers can do business at a better price |
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Term
When the demand for a good decreases, its equilibrium price...... and equilibrium quantity............
a. falls; decreases
b. falls; increases
c. rises; decreases
d. rises; increases |
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Definition
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Term
The price of a gallon of milk falls. WHich of the following is a possible cause?
a. a decrease in the price of oatmeal, a complement to milk.
b. a discovery that milk cause diabetes.
c. milk is anormal good and peoples incomes rise
d. a drought that reduces supplies of feed grains fed to cows that produce milk. |
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Definition
| b. a discovery that milk cause diabetes |
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Term
Assume that beef and pork are substitues for consumers. There is a drought in the cattle grazing areas. The drought will shift the
a. supply curve of pork rightward
b. supply curve of pork leftward
c. demand curve for pork rightward
d. demand curve for pork leftward |
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Definition
| c. demand curve for pork rightward |
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Term
Leather belts and leather shoes are substitutes in production . If style changes increase the demand for leather belts, the supply curve of leather shoes will shift.
a. leftward and the equilibrium price of leather shoes will fall.
b. leftward and the equilibrium price of leather shoes will rise.
c. rightward and the equilibrium price of leather shoes will fall |
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Definition
| b. leftward and the equilibrium price of leather shoes will rise |
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Term
A technological improvement lowers the cost of producing coffee. At the same time, consumers' preferences for coffee increase. The equilibrium price of coffee will
a. rise
b. fall
c. remain the same
d. rise, fall, or stay the same, depending on the relative size of the shifts in the demand and supply curves. |
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Definition
| d. rise, fall, or stay the same, depending on the relative size of the shifts in the demand and supply curves. |
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Term
Gross domestic product
a. includes all the goods and none of the services produces in an economy in a given time period.
b. measures the value of the aggregate productionof goods and services in a country during a given time period.
d. in generally less than federal expenditure in any time period. |
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Definition
| b. measures the value of the aggregate production of goods and services in a country during a given time period |
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Term
In the circular flow model, consumption expenditures are the spending by
a. firms for factors of production
b. government in financial markets
c. the rest of the world in the goods market
d. households in the goods market |
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Definition
| d. households in the goods market |
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Term
The largest component of GDP in the expenditures approach is
a. personal consumption expenditures
b. gross private domestic investment
c. government expenditure on goods and services.
d. net exports |
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Definition
| a. personal consumption expenditures |
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Term
Which of the following equations is incorrect?
a. Y=C+I+G+NX
b. Y=C+I+G+M-X
c. Y=C+I+G+X-M
d. Y= C+S+T |
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Definition
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