question
Law of demand
answer
A decrease in price will increase quantity demanded.
question
Demand Curve
answer
is a graphical representation of the relationship between price and quantity demanded.
question
Shift on demand curve
answer
1. College students purchase many more energy drinks during finals week
2. Students eat out more often as the federal government increases how much grant money it provides students
2. Students eat out more often as the federal government increases how much grant money it provides students
question
Movement on demand curve
answer
1. College students reduce how much detergent they use for each load of laundry in response to high detergent prices
2. College students rush and buy discount furniture to take advantage of a one day sale
2. College students rush and buy discount furniture to take advantage of a one day sale
question
Normal good:
answer
1. Billy\'s mom increases his weekly allowance by $5. As a result, Billy increases the number of apps he downloads on his smartphone. Smartphone apps are a(n):
2. Hair stylist Molly loses a few of her clients. Molly cuts back on the number of smoothies she buys during the week. Smoothies are a(n):
2. Hair stylist Molly loses a few of her clients. Molly cuts back on the number of smoothies she buys during the week. Smoothies are a(n):
question
Inferior good
answer
1. Susan gets a 15 percent performance bonus at work. She can finally stop eating so many frozen pizzas and eat something more tasty. Frozen pizzas are a(n):
2. Mike is an appliance salesman. Refrigerator sales in his store have fallen and so has his commission. Mike decides to switch from name brand cereal to generic cereal. Generic cereal is a(n):
3. Professor Jones is an oceanographer. She finds that college students eat less sushi when their incomes rise. Sushi is a(n):
2. Mike is an appliance salesman. Refrigerator sales in his store have fallen and so has his commission. Mike decides to switch from name brand cereal to generic cereal. Generic cereal is a(n):
3. Professor Jones is an oceanographer. She finds that college students eat less sushi when their incomes rise. Sushi is a(n):
question
Shift of supply curve:
answer
1. Grocers are selling more gluten free pasta, even though the price has dropped substantially
2. amplitude decides to join the smartphone market
2. amplitude decides to join the smartphone market
question
Movement along supply curve:
answer
1. Wages for igloo builders increased as igloos became more popular
2. Americans put up their gold and silver jewelry for sale as a result of rising prices
3. Soap company produces less of its quality soap as a result of lower soap prices
2. Americans put up their gold and silver jewelry for sale as a result of rising prices
3. Soap company produces less of its quality soap as a result of lower soap prices
question
Typically when the supply curve for a service shifts to the right (price on the vertical axis), the equilibrium price for that service drops. But the price of medical services (doctor visits) often does not decline if the supply curve for medical services shifts to the right. Choose the answer that is both correct and most informative.
answer
These two statements are correct. The explanation for the second is that doctors often create demand for their services.
question
Consider Wilbur\'s demand curve (entry fee on the vertical axis) for sun-bathing trips to the beach at the Boulder Reservoir. The City of Boulder (they own the Boulder Reservoir) raises the entry fee from $5 to $7. This will
answer
not shift Wilbur\'s demand curve for sun-bathing trips to the \"Res.\"
question
Consider the demand function Edward assumed for the number of trips an angler would take to the North Fork river (price on the vertical axis) .He assumed in that specification that demand for trips to the North Fork would depend how the catch rate for fish at the South Fork. Given that, which of the following conjectures is the most reasonable and the most explanatory.
answer
An increase in the catch rate at the South Fork will shift the demand curve for the North Fork to the left
question
What would an economist say about the relationship between dating and travel costs. (Choose the alternative that is correct and most informative as to how economists think.)
answer
The cost of going out with someone is an increasing function of how far away they live, unless you are only into texts, chat, and Skyping.
question
The price of hot dog buns skyrockets. This will cause the______curve of hot dogs to shift______.
answer
Demand, left
question
Nak Bum graduates from college and gets a job. He stops buying low-quality Ramen Noodles and starts buying all natural high quality organic noodles. This means that for Nak, Ramen Noodles are a(n) ______ good and Ramen and organic noodles are _______.
answer
Inferior, substitutes.
question
A new government study conclusively proves that smoking cigarettes makes people significantly more sexually attractive. Further assume people like to be sexually attractive. Which of the following is the most likely result. (Assume price of cigarettes on the vertical axis.)
answer
Initially, the supply curve for cigarettes is unchanged
question
Which of the following events would cause a movement upward and to the left along the demand curve for mangos?
answer
Price of mangos
question
The domestic car industry supports a government increase in the \"import\" tax on imported (foreign) cars. What is the likely effect of such a tax increase?
answer
The demand curve for domestic cars shifts to the right.
question
All else equal, if the price of chocolate bars in Boulder increased_______ give this more thought.
answer
The amount of chocolate bars supplied in Boulder would most likely increase.
question
A shift to the left of a supply curve (price on the vertical axis) could be caused by
answer
An increase in the cost of an input
question
If both the demand and supply curves for peanut butter ($ on the vertical axis) shift left
answer
Equilibrium quantity will fall but we cannot say what will happen to equilibrium price
question
Assuming wages and prices are not fixed or sticky, low-skilled workers, most poor, likely want to work than they can at the equilibrium wage for low-skilled labor.
answer
No, they would not like to work more at the equilibrium wage rate.
question
Suppose a car Workers\' Union accepts a pay cut. This causes a _______ the supply curve for cars because the pay cut makes cars _______.
answer
rightward shift of; less expensive to build
question
On game days, homeowners near Middletown University\'s stadium used to rent parking spaces in their driveways to fans at a going rate of $11. Assume a new town ordinance now sets a maximum parking fee of $7. Some fans who used to carpool to the game now drive alone. This effect of the price ceiling does not correspond to which of the following? give it more thought.
answer
A shift in the demand curve
question
Ting, a student in class, does not like to ski so would not ski Vail, no matter the cost. Ting\'s demand function for Vail ski days (dollars on the vertical axis) is
answer
Vertical
question
It is January. There is a market demand function (price on the vertical axis) and a market supply function for hot chocolate, a drink. Price is flexible and the market is in equilibrium. Then there is an unexpected heat wave. The result is that the equilibrium price and quantity to both decline. Which of the following explanations is most likely and most obvious.
answer
The market demand function shifted left because of the heat wave.
question
In the real world, an increase in the number of doctors (more treatment is supplied at every price) typically increases the amount of treatment but does not decrease the cost of treatment. What might explain this?
answer
The presence of each additional doctor increases the demand for treatments. That is, increased supply creates increased demand.
question
In the market place the aggregate demand curve for gubers is Gd=10-2P and the aggregate supply curve is GS=5 P where P is the price of a guber. The equilibrium price of a guber is
answer
5/3
question
Economists say the allocation is efficient when
answer
All opportunities to make some members of society better off with making other members worse off have been taken.
question
An Economy is ________ if it has taken all opportunities to make some of its members ______ off without making other members worse off.
answer
Efficient; Better
question
I have a ton of old newspapers in my home office. I like them there; Sally, my wife, does not. The current situation is inefficient because? Choose the best possible answer.
answer
Sally\'s WTP for their removal is more than my WTA their removal.
question
Would Paul and Robin (the authors of your textbook) agree, or disagree, with the following statement. \"The creation of a second-hand market for our textbook is efficiency increasing even though it makes Paul and Robin worse off.\"
answer
Agree
question
Consider the demand and supply curves for low-skilled workers with the wage rate on the vertical axis. Now assume, as in most developed countries (including the U.S.), that the government has imposed a binding \"minimum wage.\" Choose the statement about the effect of the minimum wage that is both correct and most informative.
answer
From an efficiency perspective, too few of the low skilled will work.
question
Consider the demand and supply curves for low-skilled workers with the wage rate on the vertical axis. Now assume, as in most developed countries (including the U.S.) that the government has imposed a binding \"minimum wage.\" Choose the statement about the effect of the minimum wage that is both correct and most informative.
answer
From an efficiency perspective, too few of the low-skilled will work, and the firms will be hiring all of the low-skilled workers they want to at the minimum wage.
question
T or F: Markets are always the best way to organize economic activity. Any policies that interfere with markets reduce society\'s welfare.
answer
False
Order an Essay Now & Get These Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline
