Chapter 3 and 4 Macro

In exhibit, a decrease in price from $10 to $4 leads to:

A decrease in supply

Which of the following will increase the supply of vanilla ice cream

A decrease in the price of milk

The movement in U.S population from the farms to urban areas were caused primarily by

A sharp increases in farm productivity

A public good is one that is supplied to

All people, regardless of whether they pay or not

The difference between normal and inferior goods is that

An increase in income will shift the demand curve for a normal good rightward and the demand curve for an inferior good leftward

Which of the following causes the supply of leather jackets to decrease

An increase in the price of leather

Which of the following is an example of a durable good

Binoculars

Who is Jerome Powell?

Chair of federal reserve

An increase in the price of a good normally increases the

Demand for its substitues

In what way is consumer demand different from consumer wants?

Demand takes into account the ability to pay

The law of demand is illustrated by a demand curve that is

Downward sloping

A demand curve shows how quantity demanded changes as the price changes. It implies that:

Everything else that affects demand is assumed to be constant

Who is Jeremy Bentham?

Father of Utilitarianism

Which of the following statements about a demand curve is true

If a supply curve shifts, therapy changing price, the demand curve will shift as well

If the price of potato chips increase, other things constant, demand for potato chip dips will

Increase because the goods are substitutes

Two good are considered substitutes only if an

Increase in the price of one leads to an increase in the demand for the other

Which of the following statements about the substitution effect of a price change is true?

It is cause by a change in relative prices

Which of the following is a defining characteristic of a public good?

It is freely available to everyone once it is produced

The difference between fiscal policy and monetary policy

Monetary policy involves regulation of the money supply and the fiscal policy involved government spending and taxing

An improvement in technology would shift

Neither the supply not the demand curve; instead, there is a movement along both of them

The law of demand states that:

Other things constant, quantity demanded varies inversely with price

Figure 4.4 shows the supply curve for a good. According to the figure given below, which of these will result when price increases from p to p1

Quantity supplied will increase

If people believe that prices are going to be higher in the future than they are today, they will

Save more today so they will have the income to buy more in the future

If butter and magazine are substitute goods, an increase in the price of butter is most likely to:

Shift the demand curve for margarine rightward

If the price of the good describes in Exhibit 4-1 if $1.40, then there is a

Shortage of 30 units

Which of the following is not a reason why some production continues in households

Some household production requires many specialized resources

If the price of the good describes in Exhibit 4-1 is $1.60, then there is

Surplus of 30 units

Which component of U.S household spending has grown the most over the past ten years

Taxes

Which of the following best defines supply?

The amount of good that producers are willing and able to sell at each possible price, other things constant

A movement along a demand curve can be attributed to a change in:

The demand for the good

Which of the following is true of the relationship between price and quantity supplied?

There is a direct relationship between price and quantity supplied

Which of the following is true of import tariffs and quotas

They benefit domestic producers

Gross domestic product is the market value of

all final goods produced during the course of a year

A cottage industry is one that

carries out production in workers' homes

Externalities are defined as

costs or benefits that fall on third parties

Good a and Good b are complements, then a decrease in the price of good b will

decrease the demand for good a

Jennifer expects the price of chewing gum to go up by 10 percent next week

demand will increase

Households act as demanders when they demand

goods and services from firms and the government

Households act as suppliers when they provide

resources to firms and governments

The term "utility" means:

satisfaction

The term "fiscal policy" refers to

spending and taxing by governments

A tariff is:

tax on imports