Macro Exam 1

production efficiency

A society that is able to produce goods and services at the lowest cost possible is experiencing

market

An institution that enables buyers and sellers to interact and transact with one another is known as a(n):

Interest

Capital, which includes all manufactured products that are used to produce other goods and services, earns:

shifts the supply curve to the right, reducing the equilibrium price and increasing equilibrium output.

Ceteris paribus, an improvement in production technology:

a good at a lower opportunity cost than another country.

Comparative advantage exists when one country can produce:

normal

If an increase in income leads to an increase in the demand for opera tickets, then operas are a(n) _____ good.

The demand curve for doughnuts will shift to the left.

If bagels and doughnuts are substitute goods, then which scenario is likely to occur if the price of bagels is reduced?

Market;Planned

In a _____ economy, individuals and firms own most resources, and in a _____ economy, the government controls most resources.

1.25 tons of grains

Suppose that in Japan one worker can produce either four cars or five tons of grain per year. What is the opportunity cost of producing one car in Japan?

supply

The maximum amount of a product that sellers are willing and able to provide for sale over a particular period at various prices, ceteris paribus, is called:

Profit

The payment to entrepreneurship is called:

allocative efficiency

When the mix of goods and services produced is just what society desires, then __________ exists.

an increase in the number of sellers in the yogurt market

Which event will cause an increase in the supply of yogurt?

Money

Which of these is NOT an economic factor of production?

Demand

_____ refers to the goods and services people are willing and able to buy during a certain period of time, at various prices, ceteris paribus.

The study of economics

is about peoples decisions regarding their use of scarce resources

Sacarcity is BEST defined as when:

unlimited wants exceed limited resources