Economic quizlet
Which of the following is an example of a seller in a market?
1. multiple choice An airplane passenger buying a ticket. A clothing store selling a blue dress. Correct A student paying tuition. A department store hiring a cashier.
State whether each item is associated with a technological change, globalization, or the evolution of financial markets.
A. Globalization, B. The evolution of financial markets, C. Technological change, D. Technological change
1. If the government safety net were to disappear, which of the following outcomes would be likely to occur?
A. Poor families would be able to by less food, B. The United States government would spend less on health care
1. For each of the following, indicate whether it is more likely to be associated with a laissez-faire economy or a centrally planned economy.
A. The airline industry is deregulated: Laissez-Faire economy, B. Production schedules are arranged by a central bond: Centrally planned bond, C. Laws governing those who can practice dentistry area abolished: Laissez-Faire economy
1. Given the diagram below
A. United States, B. United Kingdom, C. 13.5 trillion dollars, D. 4 trillion dollars
Many people have mixed feelings about financial markets because financial markets
Can experience violent swings
Economic activity around the world is mainly organized by
Market transactions
One benefit of globalization is
Lower prices for most consumers
At its extreme, a laissez-faire approach to the economy means no government regulation at all. Suppose we got rid of the rule that you need a medical degree to practice medicine. One disadvantage of such a change would be
A lower quality for most medical care
1. Given the following scenarios, determine whether the statement conforms to the idea of the safety net, economic competition, deregulation, or government intervention.
A. Economic competition, B. Deregulation, C. Government Intervention, D. Safety net
State whether each item is associated with a technological change, globalization, or the evolution of financial markets.
A. Globalization, B. Technological change, C. The evolution of financial markets, D. Technological change
If the quantity supplied doesn't change much even if the price changes a lot
multiple choice supply is inelastic. Correct supply is elastic. demand is elastic. demand is inelastic.
When a person becomes unwilling to consume more of a good even at a zero price, he or she has reached
multiple choice the market price. ceteris paribus. satiation. Correct the sale price.
If the quantity supplied doesn't change very much, even if the price doubles, then
multiple choice · supply is inelastic. Correct · supply is elastic. · demand is inelastic. · demand is elastic.
Suppose interest rates rise from 3% to 5% and businesses reduce their spending on goods and services by $100 for each 1% increase in the interest rate. By how much will businesses decrease their spending?
$200 Answer: Less, $200
Is the following statement true or false?
1. Most economists agree that spending money to reduce class size has little impact on educational achievement. True
Is the following statement true or false?
1. Reputable economists agree that the response to the Great Recession was the appropriate level of intervention. False
Social security, supplemental Nutrition assistance program (SNAP), and Medicaid are all examples of a
1. Safety net
Given the graph that follows:
A change in the technology of harvesting oranges results in multiple choice · a shift from supply B to supply A. · a movement from point 3 to point 4. · a movement from point 4 to point 3. · a shift from supply A to supply B. Correct
Given the graph that follows:
A decrease in the price of automobile mufflers from $30.00 to $25.00 represents multiple choice · a shift from new demand to original demand. · a movement from point 4 to point 3. · a movement from point 3 to point 4. Correct · a shift from original demand to new demand.
Many people have mixed feelings about financial markets because financial markets
A. protection against unsafe drugs: Government Intervention, B. Rapid innovation: Economic competition, C. Help for poor families: Government Intervention, D. Strong economic growth: Economic competition.
If businesses change their spending habits by $140B for every 1% change in the interest rate, how much will spending change? 420$ B
Answer: Less, 420B
. Below is the total supply and total demand schedule for apples. Quantity Supplied Price Quantity Demanded 100 $100 20 90 $90 30 80 $80 40 70 $70 50 60 $60 60 50 $50 70 40 $40 80 30 $30 90 20 $20 100
At a price of $100 the market for apples is experiencing multiple choice · excess supply. Correct · excess demand. · equilibruim. 14. Given the graph below Which of the following will move the demand curve from Demand A to Demand B? multiple choice · The cost of producing smartphones increases. · A new techonology is developed in the production of smartphones. · An increase in income and smartphones are a normal good. Correct · The price of smartphones decreases.
. Below is the total supply and total demand schedule for apples. Quantity Supplied Price Quantity Demanded 100 $100 20 90 $90 30 80 $80 40 70 $70 50 60 $60 60 50 $50 70 40 $40 80 30 $30 90 20 $20 100
At a price of $70 the market for apples is experiencing multiple choice 1 excess supply. Correct excess demand. equilibrium. At a price of $30 the market for apples is experiencing multiple choice 2 excess supply. excess demand. Correct equilibrium. At a price of $60 the market for apples is experiencing multiple choice 3 excess supply. excess demand. equilibrium. Correct
One indicator of prosperity is a gross domestic product. Gross domestic product measures the economy by
Counting the dollar value of the total output of national economy over a year
Disagreements among economists are
Frequent when considering the appropriate degree of government intervention
In the ten years after the Great Recession, the labor market and housing market recovered
In most areas of the Unites States but not everywhere
20. One of the forces driving our economy today is changes in financial markets. For every percentage change in the interest rate, spending by consumers and businesses will move in the opposite direction.
If interest rates change from 1% to 4%, will businesses purchase more or less equipment? Less
1. One of the forces driving our economy today is changes in financial markets. For every change in interest rates, spending by consumers and businesses move in the opposite direction.
If interest rates rise from 3% to 5%, will businesses purchase more or less equipment? Less
Technological change
Moves faster in some industries than others
A local car dealership notices the sale of new cars seem to move in the opposite direction of interest rates for car loans. That is, if the interest rate for car loans increases, sales will decrease at each price level or, if the interest rate for car loans decreases, sales will increase at each price level. Assume that the interest rate for car loans increases from 4% to 5% and the quantity demand for new cars decreases by 2,000 cars at each price level. Complete the new demand schedule below. New Quantity Demanded(in thousands) Original Quantity Demanded(in thousands) Price (in thousands)
New Quantity Demanded(in thousands) Original Quantity Demanded(in thousands) Price (in thousands) 4 Numeric ResponseEdit Unavailable. 4 correct. 6 30 6 Numeric ResponseEdit Unavailable. 6 correct. 8 28 9 Numeric ResponseEdit Unavailable. 9 correct. 11 26 11 Numeric ResponseEdit Unavailable. 11 correct. 13 24 13 Numeric ResponseEdit Unavailable. 13 correct. 15 22 Graph the original demand curve, D, and the new demand curve, D1.
The following table reports spending on food in 2017 by households with incomes of less than $70,000 and by households with incomes greater than $150,000. "Food eaten at home" refers mainly to food that is purchased at supermarkets and brought home. "Food eaten away from home" refers mainly to food eaten at restaurants, though it also includes college dining rooms and similar situations
Source: Bureau of Labor Statistics (rounded to the nearest $100)a) How much do households with incomes of less than $70,000 spend on food eaten at home? $3,400 CorrectThey spend more on food eaten at home Correct.b) How much do households with incomes greater than $150,000 spend on food eaten away from home? $7,300 CorrectThey spend more on food eaten away from home Correct.c) From this table, you can conclude that,Food eaten away from home is a luxury good. Correct.Food eaten at home is a normal good. Correct
The store down the street increases the price of bananas by $2 per pound. As a result, most customers switch to buying candy instead.
This is an example of elastic demand. Correct
In December 2013, the new versions of the Microsoft Xbox and Sony Playstation 4 game consoles were in short supply. Many retailers ran out of stock, and especially around the holiday season, parents ran from store to store hoping to find a new game console to give their kids as a present.
a) At the time, the game console market was facing a situation of excess demand Correct.b) The list price for the Playstation 4 unit was $400. What was the equilibrium price? The equilibrium price was higher than $400 Correct.c) Sony sold 4.2 million Playstation 4 units in the United States in 2013. What was the equilibrium quantity? The equilibrium quantity was higher than 4.2 million
A tax is imposed on tennis shoes.
a) Does this affect the supply curve, the demand curve, or both? multiple choice 1 Both supply and demand Correct Demand Supply b) Identify the corresponding cause of the market shift. multiple choice 2 Government action Correct Technological change Changes in financial markets Change in raw material price Change in taste Change in income Globalization
Bruce belongs to an online book club where he can purchase books at various prices. Over the past year he purchased books according to the following schedule
a) Graph Bruce's demand curve for books. Instructions: Use the plotting tool to plot each point (5 points total) along the curve. b) How many books does Bruce purchase if the price per book is $20? 10 Numeric Response 1.Edit Unavailable. 10 correct.book(s) c) How many books does Bruce purchase if the price per book is $5? 16 Numeric Response 2.Edit Unavailable. 16 correct.book(s)
Hilda delivers bags of groceries weekly according to the following schedule
a) Graph Hilda's supply curve for delivering groceries. Instructions: Use the plotting tool to plot each point (5 points total) along the curve. b) How many bags of groceries will Hilda deliver when the price per bag is $11? 3 Numeric Response 1.Edit Unavailable. 3 correct.bags of groceries c) How many bags of groceries will Hilda deliver when the price per bag is $8? 2 Numeric Response 2.Edit Unavailable. 2 correct.bags of groceries
Indicate whether each of the following is an example of: market price, sale price, volume discount price, advance purchase price, or negotiated price.
a) Hershey chocolate bars are on sale 3 for $2.00. multiple choice 1 Sale price Correct Volume discount price Negotiated price Market price Advance purchase price b) You offer $500 less than the sticker price to purchase a car. multiple choice 2 Sale price Volume discount price Negotiated price Correct Market price Advance purchase price c) You upgrade your cloud subscription and get a lower price per gigabyte. multiple choice 3 Sale price Volume discount price Correct Negotiated price Market price Advance purchase price
Sam lives in a small town with only one restaurant. The restaurant, run by an eccentric old gentleman, offers a dinner menu on which every dish is the same price. Each month he posts the price of the meal in the window. The following table lists the number of times Sam goes out to dinner during the month, according to the posted price of the dinner:
a) Plot the demand curve for meals. Instructions: Use the plotting tool to plot each point (6 points total) along the curve. b) How many times per month does Sam eat at the restaurant if the price per meal is $18? Sam will eat at the restaurant 8 Numeric ResponseEdit Unavailable. 8 correct.times during the month. Explanation a) The demand curve for restaurant meals is a downward-sloping curve between points (2,$36) and (24,$6).b) The demand curve shows the various quantities consumers are willing and able to buy at various prices. When the price is $18, the quantity demanded will be 8 restaurant meals per month.
In a small town there's only one construction company that builds new homes. The following table lists the number of new homes built in a year at different selling prices
a) Plot the supply curve for the new homes. Instructions: Use the plotting tool to plot each point (5 points total) along the curve. b) How many homes are built if the price is $250,000 per home? 16 Numeric ResponseEdit Unavailable. 16 correct.homes Explanation a) The supply curve for new homes is an upward-sloping curve between points (2, $150,000) and (23, $350,000). The supply curve shows the various quantities producers are willing and able to supply at various prices. b) When the price is $250,000, the quantity supplied will be 16 homes.
The following graph represents the market for yachts.
a) The market equilibrium occurs at a price of P2 Correct.b) Suppose there is a sudden increase in the demand for yachts because there are more billionaires in emerging markets. The new equilibrium price will be: P1
In a shorefront tourist town, a hurricane washes away the beach. All of the town's hotels, however, are still intact, but the beach that was an added value to vacationers is no longer available.
a) The supply curve for hotel rooms wouldmultiple choice 1 · stay in the same place. Correct · shift to the left. · shift to the right. b) The demand curve for hotel rooms wouldmultiple choice 2 · shift to the right. · shift to the left. Correct · stay in the same place. c) After the hurricane, the equilibrium price and quantity of hotel rooms wouldmultiple choice 3 · increase. · decrease. Correct · not change. d) Suppose the neighboring town still has its beach. After the hurricane, the market demand curve for hotel rooms in this town wouldmultiple choice 4 · shift to the right. Correct · shift to the left. · stay in the same place.
A sudden discovery of an enormous gold mine in Florida would mean a
multiple choice rightward shift in the supply curve for gold. Correct rightward shift in the demand curve for gold. leftward shift in the supply curve for gold. leftward shift in the demand curve for gold.
Which of the following is an example of a buyer in a market?
multiple choice A student paying for a textbook. Correct A museum selling annual passes. A theater selling movie tickets. An airline offering low fares for seats on a flight.
Which of the following is an example of a buyer in a market?
multiple choice An airline offering low fares for seats on a flight. A student paying for a haircut. Correct A restaurant selling a meal. An amusement park selling admissions to a ride.
Which of the following is an example of a global market?
multiple choice The market for crude oil. Correct The market for haircuts in New York City. The market for homes in Dallas. The market for dry cleaning in St. Louis.
Which of the following is an example of a global market?
multiple choice The market for steel. Correct The market for grocery stores in a town. The market for homes in Dallas. The market for haircuts in New York City.
The first true smartphone, the iPhone, was introduced in 2007. Since then, billions of smartphones have been sold globally. Which of the following statements is true?
multiple choice The rise of the smartphone created many new markets, including the market for smartphone applications (apps). Correct The rise of the smartphone did not lead to any new markets. The only new market created is the market for smartphones. The price of smartphones is lower than the price of the phones they replace.
The cost of an economic choice in terms of what was chosen and what was not chosen is know as opportunity cost.
multiple choice True Correct False
In 2015, the average income was $56,516 and in 2017, the average income was $61,372. The percentage change in income was 8.6 percent. Consumer spending on "Owned Dwellings" during that time increased from $6,210 to $6,947. The percentage change in expenditures on "Owned Dwellings" increased 11.9%. Therefore, spending on "Owned Dwellings" is considered
multiple choice a normal good. Correct an inferior good. a luxury good.
The market for new automobiles has excess demand if
multiple choice car dealers have more autos than they can sell at the market price. potential buyers don't have to wait for the car they want. car dealers temporarily run out of autos to sell at the market price. Correct
The link between the price of the good and the quantity demanded is called the
multiple choice demand schedule. Correct quantity supplied. supply schedule. quantity demanded.
The demand curve is the graphical representation of the
multiple choice demand schedule. Correct supply schedule. opportunity cost. sale price.
Other than meaning "all other things equal," ceteris paribus
multiple choice determines the effect of a single change on a complex system. Correct is the law of supply. is the law of demand. is the market price.
At a price of $90, where quantity supplied is 90 and quantity demanded is 20, the market is in
multiple choice excess supply. Correct excess demand. equilibrium
All other things being equal, when the price of a good increases, the quantity supplied typically
multiple choice increases. Correct decreases. stays the same
If the price of soda increases 20 percent, and you do not change the amount of soda you purchase, then your demand for soda is
multiple choice inelastic Correct elastic
The typical price at which a good or service sells in a market is the
multiple choice market price. Correct sale price. negotiated price. volume discount.
In the early days of the Internet, relatively few Americans had online access. Now more than three-quarters of Americans have access to the Internet. That suggests Internet access turned from a
multiple choice normal good into a luxury good. luxury good into an inferior good. luxury good into a normal good. Correct
If the price of a good increases then quantity demanded
multiple choice 1 decreases. Correct increases. remains unchanged. If the price of a good decreases then quantity demanded multiple choice 2 increases. Correct decreases. remains unchanged. This is known as multiple choice 3 the law of demand. Correct the law of supply. opportunity cost.
If the price of a good increases then quantity supplied
multiple choice 1 increases. Correct decreases. remains unchanged. If the price of a good decreases then quantity supplied multiple choice 2 increases. decreases. Correct remains unchanged. This is known as multiple choice 3 the law of supply. Correct the law of demand. opportunity cost.
