question
Economics is the study of ____________ people make to attain their goals, given their ___________.
answer
choices
scarce
scarce
question
The cost incurred from the production of an additional unit of a product
answer
is a marginal cost to the firm
question
If the marginal cost of producing a television is constant at $200, then a firm should produce this item
answer
as long as the marginal benefit it receives is just equal to or greater than $200
question
Ted quits his $60,000-a-year job to be a stay-at-home dad. What is the opportunity cost of his decisions?
answer
at least $60,000
question
In a market economy, ____________ interact in markets to decide the answers to the fundamental economic questions.
answer
households and firms
question
Which of the following is a problem inherent in centrally planned economies?
answer
Production managers are more concerned with satisfying government's orders than with satisfying consumer wants
question
When every good or service is produced up to the point where the last unit provides a marginal benefit to society equal to the marginal cost of producing it, ______________ occurs.
answer
allocative efficiency
question
Which of the following is a positive economic statement?
answer
If the price of gasoline rises, a smaller quantity of it will be bought
question
Which of the following is a normative economic statement?
answer
Fashion designers should be allowed to copyright designs to promote innovation
question
Which of the following is a macroeconomic statement?
answer
What determines the minimum wage?
question
A _______________ is represented by a rightward shift of the demand curve while a _______________ is represented by a movement along a given demand curve.
answer
increase in demand;
increase in quantity demanded
increase in quantity demanded
question
If in response to a decrease in the price of coffee, the quantity of coffee demanded increases, then economists would describe this as
answer
an increase in quantity demanded
question
The table above shows the demand schedules for Kona coffee of two individuals (Luke and Ravi) and the rest of the market. At a price of $6, the quantity demanded in the market would be....
answer
89 lbs
Add up all quantity demanded
Add up all quantity demanded
question
The ____________ effect of a price change refers to the impact of a change in the price of a good on a consumer's purchasing power.
answer
income
question
The substitution effect of a price change refers to
answer
the change in quantity demanded that results from a change in price making a good more or less expensive relative to other goods that are substitutes
question
If the price of pork rinds falls, then the substitution effect due to the price change will cause
answer
an increase in the quantity of pork rinds demanded
question
If a decrease in income leads to a decrease in the demand for ice cream, then ice cream is
answer
normal good
question
An increase in the price of a complement would be represented by a movement from
answer
D2 to D1
question
If the product represented is an inferior good, a decrease in income would be represented by a movement from
answer
D1 to D2
question
According to a recent study, "Stricter college alcohol policies, such as raising the price of alcohol, or banning alcohol on campus, decrease the number of students who use marijuana." On the basis of this information, how would you describe alcohol and marijuana?
answer
The two goods are complements in consumption
question
If the price of propane-fueled gas grills was to decrease, then
answer
the demand for propane would increase
question
Last month, the Tecumseh Corporation supplied 400 units of three-ring binders at $6 per unit. This month, the company supplied the same quantity of binders at $4 per unit. Based on this evidence, Tecumseh has experienced
answer
an increase in supply
question
Which of the following would cause an increase in the supply of cheese?
answer
an increase in the number of firms that produce cheese
question
A decrease in the price of substitutes in production would be represented by a movement from
answer
S1 to S2
question
Farmers can plant either corn or soybeans in their fields. Which of the following would cause the supply of soybeans to increase?
answer
a decrease in the price of corn
question
Let D = demand, S = supply, P = equilibrium price, Q = equilibrium quantity. What happens in the market for sushi if the Surgeon General announces that a majority of the raw fish that is imported to make sushi contains high levels of toxic mercury?
answer
D decrease, S no change, P and Q decrease
question
Assume that the demand curve for DVD players shifts to the left and the supply curve for DVD players shifts to the right, but the supply curve shifts more than the demand curve. As a result
answer
the equilibrium price of DVD players will decrease, the equilibrium quantity will increase
question
An increase in the equilibrium price for a product will result
answer
when there is a decrease in supply and an increase in demand for the product
Order an Essay Now & Get These Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline
