Macroecomics chapters 1,2,3,4
which product is most likely to be most price elastic
automobiles
among competing issues, the most important concern of economics is with the
efficient use of limited productive resources to satisfy economic wants
an increase in the price of a good will cause total revenue to fall if price elasticity of demand is
elastic
which would not be a characteristic of a capitalist economy
government ownership of the factors of production
to economists, the main differences between "the short run" and "the long run" are that:
in the long run all resources are variable, while in the short run at least one resource is fixed
the term "scarcity" in economics can refer to the fact that
no country can produce enough products to satisfy everyone's wants
the law of demand states that
price and quantity demanded are inversely related
the idea that desires of resource suppliers and producers to further their own self-interest to further their own self-interest will automatically further the public interest is known as:
the invisible hand
Henry wants to buy a book. The economic perspective suggests that Henry will buy the book if
the marginal benefit of the book is greater than its marginal cost
the term "consumer sovereignty" means that:
the marginal benefit of the book is greater than its marginal cost
what best describes a command economy
the production and allocation of goods and services is determined primarily through government
what best describes a capitalist economy?
the production and allocation of goods and services is determined primarily through markets
at the point where the demand and supply curves for a product intersect
the quantity that consumers want to purchase and the amount producers choose to sell are the same
what is not a determinant of the price of elasticity
the slope of the demand curve for a product
opportunity cost is best defined as
the value of the best forgone alternatives
If two goods are complements
a decrease in the price of one will increase the demand for the other
demand can be said to be inelastic when
a reduction in price results in a decrease in total revenue
which of the following would not shift the demand curve for beef
a reduction in the price of cattle feed
Decreases in products prices causes the consumer's
budget line to shift outward from the origin
in the circular flow model, households:
buy products and sell resources
This macroeconomic study is the study of the effect of
changing government spending to increase employment
_______ __ ______ is necessary to make a trade in a barter economy
coincidence of wants
the term "dollar votes" means:
consumers "vote" for certain products to be produced by how they spend their incomes
an increase in the price of a product will reduce the amount its purchased because:
consumers will substitute other products for the one whose price has risen
if demand for farm crops is inelastic, a good harvest will cause farm revenues to
decrease because of a percentage fall in price greater than the percentage increase quantity sold
the relationship between quantity supplied and price is _____ and the relationship between quantity demanded and price is
direct, inverse
the process in which workers do specialized tasks to make a product is referred to as
division of labor
state government wants to increase the taxes on cigarettes to increase tax revenue. This tax would only be effective in raising new tax revenues if the price elasticity of demand is
inelastic
the branch of economics that focuses primarily on aggregates is
macroeconomics
the study of how a single business firm sets its prices would fall under the study of
microeconomics
the law of supply indicates that
producers will offer more of a product at high prices that they will at low prices
the price elasticity of demand is a measure of the
responsiveness of quantity demanded to a change in price
Sony is considered a 10 percent price reduction on its LCD television sets. If the demand for sets in this price range is inelastic:
revenues from LCD sets will increase
Over half of US consumer expenditures are for:
services
what is an inferior good
used clothing
the utility of a specific product
varies from person to person using the product
