Econ
In the economy of Talikastan in 2015, consumption was $1000, GDP was $1950, government purchases were $500, and investment was $700. What were Talikastan's net exports in 2015?
$-250
A farmer sells five pounds of pecans to a Smith's Fresh Pecans for $10. Smith's Fresh PEcans resells three pounds for $4.50 per pound. The remaining pecans are shelled and canned and sold for a total of $8.00. Taking these transactions into account, how much is added to GDP?
$21.50
The following table contains the demand schedule and supply schedule for a market for a particular good. Suppose sellers of the good successfully lobby Congress to impose a price floor $2 above the equilibrium price in this...
$3
The effective price sellers receives after the tax is imposed is
$3.00
In 2015, GDP per person in the US was almost
$56,000
The effective price received by sellers after the tax is imposed is
$8
Which of the following is the correct formula for the GDP deflator?
(Normal GDP - Real GDP)/ Real GDP x100
If nominal GDP is $10 trillion and real GDP is $12 trillion, then the GDP delator is
83.33, and this indicates that the price level has deceased by 16.67 percent since the base year
Which of the following situations will total revenue increase?
All of the above are correct.
If macaroni and cheese is an inferior good, what would happen to the equilibrium price and quantity of macaroni and cheese if consumers' incomes rise?
Both the equilibrium price and quantity would decrease
As price falls from Pa to Pb, we could use the three demand curves to calculate three different values of price elasticity of demand. Which of the three demand curves would produce the smallest elasctity?
D3
At a price of $20, which of the following statements is not correct?
Equilibrium price is equal to equilibrium quantity.
"If all economists were laid end to end, they would not reach a conclusion." Who made this whimsical observation?
George Bernard Shaw
Which demand curve is unit elastic?
None of the above.
Which of the following movement would illustrate the effect in the market for orange juice of an announcement by the American Dental Association that orange juice erodes tooth enamel?
Point C to Point B
What would happen to the equilibrium price and quantity of peanut butter if the price of peanuts went up, the price of jelly fell, fewer firms decided to produce peanut butter, and health officials announced that eating peanut butter was good for you?
Price will rise, and the effect on quantity is ambiguous.
Which of the following was not a reason OPEC failed to keep the price of oil high?
The agreement OPEC members signed allowed each country to produce as much oil as each wanted.
What would happen to the equilibrium price and quantity of lattés if the cost to produce steamed milk, which is used to make lattes, increased, and scientists discovered that lattes cause heart attacks?
The equilibrium quantity would decrease, and the effect on the equilibrium price would be ambiguous.
For a particular good, a 3 percent increase in price causes a 10 percent decrease in quantity demanded. Which of the following statements is most likely applicable to this good?
There are many close substitutes for this good.
Net exports equal
Y-(C+I+G)
Minimum-wage laws dictate
a minimum wage that firms may pay workers
Suppose roses are currently selling for $20 per dozen, but the equilibrium price of roses is $30 per dozen. We would expect
a shortage to exist and the market price of roses to increase
If both member and non-members are allowed to purchase tickets to this year's celebrity golf tournament and the country club sets the ticket price to $30, then there will be
a surplus of 300 tickets
If a binding price floor is imposed on the video game market then
all of the above are correct
If binding price ceiling is imposed on the baby formula market, then
all of the above are correct
When a tax is placed on the sellers of a product the
all of the above are correct
Suppose the equilibrium price of a tube of toothpaste is $2, and the government imposes a price floor of $3 per tube. As a result of the price floor,
all of the above are correct.
Rent controls can cause
all of these are possible results of rent controls
Consider the market for portable air conditioners in equilibrium. When a heat wave strikes the equilibrium price
and quantity both increase
A price ceiling set at $5 will
be binding and will result in a shortage of 250 units
Suppose a tax of $2 per unit is imposed on this market. How much will buyers pay per unit after the tax is imposed?
between $5 and $7
Suppose the demand for macaroni is inelastic, the supply of macaroni is elastic, the demand for cigarettes is inelastic, and the supply for cigarettes is elastic. If a tax were levied on the sellers of both of these commodities, we would expect that the burden of
both taxes would fall more heavily on the buyers than on the sellers.
If demand is price inelastic, then
buyers do not respond much to a change in price
Price ceilings and price floors that are binding
cause surpluses and shortages to persist because price cannot adjust to the market equilibrium price.
A legal maximum on the price at which a good can be sold is called a price
ceiling
Which of the following is an example of depreciation?
computers becoming obsolete
If a tax is levied on the sellers of a product, then there will be a(n)
decrease in quantity demanded.
A tax on the sellers of coffee mugs
decrease the size of the coffee mug market.
The government removes a binding price floor from a market, then the price received by sellers will
decrease, and the quantity sold in the market will increase.
A newspaper article informs you that most business reduced production in the last quarter but also sold from their inventors during the last quarter. Based on this information GDP likely
decreased.
When a tax is imposed on the buyers of a good, the demand curve shifts
downward by the amount of the tax
Holding all other forces constant, if increasing the price of a good leads to a decrease in total revenue, then the demand for the good must be
elastic.
Which of the following is likely to have the most price inelastic demand?
gasoline in the short run
Congress intended that
half the FICA tax be paid by workers, and half to be paid by firms.
A minimum wage that is set below a market's equilibrium wage will
have no impact on employment
For prices below $5, demand is price
inelastic, and raising price will increase total revenue.
When demand is perfectly inelastic, the price elasticity of demand
is zero, and the demand curve is vertical.
Which of the following is likely to have the most price inelastic demand?
lightbulbs
The price elasticity of demand measures the
magnitude of response in quantity demanded to a change in price.
Total revenue will be at its largest value on a liner demand curve at the
midpoint of the curve
If the government imposes a price ceiling of $6 on this market, then there will be
no shortages
A perfectly inelastic demand implies that buyers
purchase the same amount as before when the price rises or falls
If the price is $10, then there would be a
shortage of 600 unites, and price would rise.
Suppose roses are currently selling for $40 per dozen, but the equilibrium price of roses is $30 per dozen. We would expect a
surplus to exist and the market price of roses to decrease.
Which government entity computes US GDP every three months?
the Department of Commerce
US firm produces nail guns in the first quarter of 2010 and adds them to its inventory. In the second quarter of 2010 the firms sells the nail guns to a US construction company. In which quarters does these transactions raise investment?
the first but not the second
Assume the market for tennis balls is perfectly competitive. When one tennis ball producer exists the market,
the price of tennis balls does not change.
Years ago, thousands of country music fans risked their lives by rushing to buy a ticket for a Willie Nelson concert at Carnegie Hall. This behavior indicates
the ticket price was below equilibrium price.
The Earned Income Tax Credit is an example of a
wage subsidy
