econ final

according to your textbook authors, economics is generally

a method rather than a body of settled conclusions

a unit of output whose production and sale adds less to cost than in generates in additional revenue is

a profitable unit to produce and sell

other things constant, which of the following would tend to decrease the demand for disney world vacations

a rise in income, if disney world will raise its price after the is summer

price searchers

actions of theses firms affect price so consider the mc and mr connection

the high- schools dropout rate usually declines in an economic recession becasue

adecline in job opportunities lowers the opportunity cost of remaining in highschool

to economize means to

allocate available resources in a way that yields the oat value to the economizer

according to your text the "market economy" can best be understood as

an extremely complex institution that emerged out of individuals specializing and trading with others

which of the following would tend to increase the demand for college textbooks

an increase in the number of enrolled college students

according to your textbook, which of the following best explains the fact that income inequality has increased in the us since 1980

an increases in the supply of less- skilled 2workers combined with an increase in demand for more highly-skilled workers

the federal trade commission act of 1914 was charaxctized best by creating

an independent agency

if nation-states are abe to extend effective control over ocean resources from 3 milise to 200 miles of their costs valuable marine animals are more likely to be harvested

at a rate consistent with their long run preservation

a national taco chain offers in-house costumers free refills on drinks. it is clearly

attempting to increase its total profit

your text suggests if the price of insulin were to significantly increase, more diabetics will likely

avoid refilling their prescriptions as regularity, turn towards substitutes such as a better diet and exercise, adopt holistic healthcare, organic medicines, and other perceived substitutes

the textbook cautions against speaking of the people as wanting a particular good

because it is not clear in what sense collectives as distinct from individuals can even have wants

if the ncaa prohibits college and universities form offering more than room, board, and tuition to outstanding high school football and basketball players the recruitment practies of athletic department will

become constantly more complex and costly

according to your text, there are substitutes for any scarce good

but it often takes time for consumers to seek out useful substitutes

retailers and other middlemen provide benefits to patrons

by lowering the cost to their costumers of acquiring valuable information

according to an economic explanation, social interactions are the result of

calculated choices by individuals

the problem of free riders arise in a society when goods

can be scarce

until recently cd ripoff was the only music store selling compact disks in the small town of backs ager isa. now the internet cable has reahed backwater, allowing households there to download music. over time

cd ripoff's consumers will be more price sensitive than before

according th our author, economics is the study of ____ and it's ___

chocie, uninteded consiquences

no one can make a pencil this statement highlights

cooperation and complex set of markets

suppose consumers view the George foreman girl and the weber charcoal girl as close substitutes. other things constant a fall in price of the George Forman grill would tend to

decreased the demand for the weber grill

restraunts catering to a lunch and dinner trade are likely to mark their prices up above the cost of food more for dinner than for lunch because the

demand is less elastic at dinner

how is a politician similar to an entrepreneur

each advances a project only if the expected marginal benefits exceed to excepted marginal costs

which of the following characteristics has the single greatest impact on a household's income

education

a professor who posts the course syllabus and encourages students to select an alternative class or section during the first week is providing the opportunity for students to ____

either buy in or to buy out as advance, informed consent

the economic way of thinking

explains how social order and cooperation emerge from the actions of individuals

public goods are characterized by

free- riding

rank the following goods from least to most elastic gasoline, uncoil gasoline, , gasoline at murhpy's unocal station

gasoline, uncoal gasoline, gasoline at murphy's uncoal station

elastic demand sike was able to increase net revenue by charging different prices to different buyers b/c

his marginal costs declined as his sales increased

people who come to fear that their wealth is going to be confiscated will acquire a relatively greater incentive to invest in

human capital

a business can operated profitably at a loss for an indefinite period of time

if it is unable to meet all their obligations but to cover operating costs

from the economic point of view, why will an avid downhill skier devote many hours to reading comparing, and testing a new pari of ski boots but only a few hours to deciding who to vote for in the state snator race

in his estimation being highly informed about ski boots is better use of his time compared to being highly informed about potential state senators

if costco reduced its grocery prices below cost in a particular metropolitan are and kept them there until all other grocery stores in the area had been forced into bankruptcy, costco would almost certainly sustain huge net losses

in the shot and long run because grocery stores would reappear quickly when costco subsequently set high prices

which of the following measures shows the most equlity

income after taxes and transfers

a truly voluntary exchange

is not an exchange of equal value

people use water for trivial, unimportant purposes because

its relative price is very low

government failure occurs when

lobbyists have increased influence.

cost plus reconsidered

look again for this persistent rationale

the HHI is a measure that uses the

market share of each firm square and summed across 50 firms

market fialure refers to the continuing difficulty of a market to hanged which of the following

monopoly, spill overcosts and spill over benefits public goods

_____ people will seek medical care when the price of a doctor's visit_____

more: falls

price discrimination by sellers usually result in

new and additional opportunities for some buyers

consider a tragic and hart-wrenching case in which a cancer patient is told he needs chemotherapy in order to live three more years at best, but the patient's final three years will be filled with all the terrible side0effects of the treatment. WSithout it, he will surely die within a year. but his quality of live would be better. Suppose he chooses to quit chemotherapy. the economic way of thanking would conclude

none of these are true

do costs determine prices?

nope - not even markups: linked elastic demand and prices of lunch and dinner in text

pick the source good below with the completely inelastic vertical demand curve

nothing

externalities occur

only when the decision maker does not take into account all the benefits or costs from an action

the ability of employers to increase their net revenue by paying low wages in limited primarily by

other opportunities available to employees

according the physicians people should drink eight full glasses of water per day to maintain optimal health,it is now common knowledge. but people don't necessarily follow doctors orders because

people value other goods in addition to optimal health

legislators who must stand for re-election every two years will tend to support

policies promising early benefits and deferred costs

one year after the september 11 2001 terrorist attack, journalist were running stories saying nobody will fly on the anniversary of 09/22 as the one-year anniversary of 09/22 neared, however prices were cut substantially and planes were quite full, which of the following best explains the full plane on 09/11/02

price decreased and quantity demanded increased

if freezing weather in florid destroys a large portion of the current orange crop

price of florid oranges will rise and quantity demanded will fall

jack trades his basketball for jim's baseball glove. This simple trade is

productive, because jacky and jim expect to be better off by trading

suppose Carmen buys romen noodles. To determine whether ramen noodles are a normal or inferior good for her we must observe how carmen

responses to change in her income

price makers

same as price searchers check monopoly, oligolpolistic computation, cartelss

economists fin the notion of people " needing things to be

seriously misleading because they ignore substitutes

in our classroom auction, the role played by intentions in exchanges whom were you trying to help is best summarized by which of the following statements

stated intentions did not matter

in the duepont suran wrap case the us supreme court used the economic concept of ____to conclude________ that the company was _______ a monopolist

subsitutes: correctly: not

evidence of degree of movement among quantiles in the income distribution reveal there ++++ movement

substantial

suppose the market clearing price for apples rises from 200 to 300 per pound and the overall market clearing output decreases form 1million to 1/2 million pounds. how can we explain the increase in price and the decrease in market output?

supply decreased and demand remained unchanged

rational ignorance helps to explain

t eh low level of understanding political behavior

in our auction's ester round with one buyer and three sellers, the result of that round illustrated

that a will-intentioned law closed options that others would have freely chosen

which of the following is the best example of a free good?

the air you currently breathing

suppose the average person needs 8 glasses of water each day to maintain optimal health. What would an economist conclude

the amount the adverse person drinks will depend upon what has to be given up to acquire the additional glasses of water

if a commercial airline starts offering maxi-sever fares at huge discounts to passengers who purchase tickets at least 30 days in advance and agree to stay over a saturday night what is the most likely effect upon first-class passenger service

the demand for first-class service may fail somewhat because the price of a substitute good as decreased substantially

complementary goods are goods people consume together, such as peanut butter and jelly. if the price of peanut butter falls, we predict

the demand for jelly would increase

suppose drug companies come out with a new wonder-drugs capable of curing the common cold

the demand will increase if the drugs can only be obtained with a physician's persciption

percentage markups are characteristically lower in supermarket than in convince stores because t

the dmand curve of customers patronizing supermarkets tend to be more elastic

which of the flowing would be most likely to cause an increases in the demand for gold?

the expectation of future incases int eh price of gold

which of the statements below best express the relationship between the cost of a medical education nd the fees charged by physicians

the greater the expected costs of medical education, the fewer physicians there will be and the higher their fees will be

in our classroom auction th obeyers and sellers having the most difficult time exchanging were

the high cost sellers and those with few $ to buy

according to economists national defense can be supported through taxation because

the people who refuse to pay the cost cannot easily be excluded front eh benefits

the rush - hour traffic example in class i-540 and our text, illustrated

the role of generally accepted norms and adjustments

less demand causes lower price, and owed prices cause more demand the above statement shows

the speaker has confused himself fby saying demand in the second half to the statement when he meant quantity demanded

the demand for a good is inelastic if when its price rises,

the totla dollars expenditure on the good increases

from the economic point of view, what does a professor who posts her syllabus on the internet

they are expanding the range of opportunities available to others

according to the textbook income inequality statistics can be misleading because

they ignore the income mobility of individual families and households through time

oneo well established full - service stock brokerage charges 35$ commission per table. a new online brokerage charges $7.95 per trade, yet many people still elect to use the traditional, full service broker why?

they might perceive the low commission to be a sign of low reliability

buisness executives who think the demand fro their product is very elastic at the current price are assuming

they will sell more units and receive more dollars in sales revenue at a lower price

which group below will generally have a difficult time finding employment if a nations minimum wage were increased

those who are among the younger job seekers

economic considerations presume that people want

to advance to projects in which they are interested.

price discriminations

to possibly increased by pricing the elastic demand

lifetime income reflects__ paptterns

traditional

in the economic way of thinking a tax on pullutants

tries to alter relative money costs to reflect new decisions about who has which rights

comparing the profile of families in the upper 20% of income recipients with the lowest 20% reveals that the highest income families are characterized by

two income aults

which of the following statements is true

two of the choices are true

in chapter 1 your authors marveled at the way highway traffic is orderly and self-regulating in chapter 6 haowerever they discuss a growing problem on urban roadways- congestion. what is the cause of roadway congestion

typically road use is a scarce good with a zero price tag

the tax foundation report of november 11 2013 indicated that the overall redistribution of income

was about 2 trillion

WHEN THE PRICE OF PIZZLE TREES INCREASED BY 20 PERCENT LAST YEAR, CONSUMERS ENDED UP SPENIDNG 10 percent more on the purchase of puzzle trees. this shows that the demand for puzzle trees

was inelastic

people use water for many different purposes from drinking and cleaning to filling pools , balloons, and squirt guns. economist acknowledge the multiple uses of water when they point out that

water is a good with many alternatives uses at the margin

wealth consists ultimately of

what ever people value

suppose you hear professor 1.m. dismal say, there is no substitute fro carefully reading your textbook. in the real world students

will often find what they believe are useful substitutes for reading the text.

the substitution of machines for labor

will proceed more rapidly in a society the more rapidly the cost of hiring workers rise

Test D from here

Test D form here