Macroeconomics Quizzes for Test 1

¡Supera tus tareas y exámenes ahora con Quizwiz!

A firm's overall productive capacity; hence, the position of the firm's supply curve on a graph depends on: A. product prices and profitability associated with production alternatives. B. factor prices, including wages, interest, and rent. C. the availability of labor resources. D. All

D

Which of the following are legal forms of business? A. Sole proprietorship B. Partnership C. Corporation D. All

D

Refer to the graph below. (line graph quiz 2) An decrease in supply is shown by a shift from ______ to _______

S2 to S1

The provision of public goods and services is an _____________ function of the government.

allocative

Which of the following would not shift the demand curve for beef? a reduction in the price of ____________ __________

cattle feed

In the ______________ __________ model, producers spend earnings from resource sales on goods and services in the product market.

circular flow

The ________ demonstrates the roles played by households and firms in the market system.

circular flow model

If the demand for product C shifts to the right, this might be caused by a decrease in the price of a product that is _____________________ to C.

complementary

If two goods are _____________________, a decrease in the price of one will increase the demand for the other.

complements

An price increase will reduce the amount of a good demanded because ________________ seek substitutes for that good that is more expensive.

consumers

The flow of ___________ and ____________ is separate from the flows in the circular flow model

costs; revenue

a ____________ curve shows the relationship between price and quantity supplied.

demand

If X is a normal good, an increase in income will shift the ______________ curve for X to the __________

demand; right

The income and substitution effects explain the ________________ ___________ of the demand curve

downward sloping

Other things equal, which of the following might shift the demand curve for gasoline to the left? the development of a low-cost _______________ automobile

electric

Because of unseasonably cold weather, the supply of oranges has substantially decreased. This statement indicates that the supply of oranges has _____________

fallen

A flow in the circular flow includes: the flow of income earned by ________ and the flow of expenditures earned by ________________

firms; households

__________________ sell their labor services in the resource market.

households

When the price of a product falls, the purchasing power of our money income rises and thus permits consumers to purchase more of the product. This statement describes the

income effect

The law of demand states that price and quantity demanded are _____________ related

inversely

The income earned by those who supply ________ is called wages.

labor

A firm's supply curve is upward sloping because of the ____________ of ___________________ _____________

law of diminishing returns

Holding everything else constant, if the price of a key resource used to produce good X falls, the supply curve of X will shift to the _________

left

a decrease in the number of firms participating in the market will shift to the supply curve to the ___________

left

The term ________ in economics refers to a group of buyers and sellers of a product and the arrangement by which they come together to trade.

market

An economist for a bicycle company predicts that (other things equal) a rise in consumer incomes will increase the demand for bicycles. This prediction is based on the assumption that bicycles are ________________ ___________

normal goods

Which of the following will not cause the demand for product K to change? Change in K ____________

price

When you purchase a new pair of jeans you do so in the

product market

As planned output increases within a given productive capacity, which of the following is not held constant?

product price

For a given demand relationship, the most important factor in determining a consumer's planned purchase is:

product price

Households ________ final goods and services in the ________ market.

purchase; product

Land resources used in production are made available in the

resource market

An improvement in production technology will shift the supply curve to the

right

If the price of K declines, the demand curve for the complementary product J will shift to the ____________

right

If the price of product L increases, the demand curve for close-substitute product J will shift to the _____________

right

production technology is a determinant of ____________

supply

the law of _____________ reflects the amounts of output that firms are willing and able to produce at various prices.

supply

The _____________ ____________ shows the relationship between price and planned output (quantity supplied).

supply curve

(line graph quiz 2) Refer to the graph below. An increase in quantity supplied or planned output is depicted by a move from point _____ to _____

x to y


Conjuntos de estudio relacionados

Framework and Financial Reporting

View Set

A33 CH6: QUIZ- INFECTION PREVENTION - MELBENZ

View Set

AP Computer Science Principles Unit 2 Review - Additional Practice

View Set