ECON 1010 Review Chapters 1-5

Match the statements to the appropriate category. Each category will contain two statements and each statement is used only once. Assume that pens are a normal good and that apples and oranges are substitute goods.

Change in quantity demanded The price of pens decreases If the price of apples changes, Billy will change how many apples he buys. Change in demand Since Annie got a raise, she buys more pens. The price of oranges rises , the price of apples does not change. Therefore, billy buys more apples.

Which statements connects the expenditure measure of the gross domestic product (GDP) to economic well‑being?

People who live in an economy with a high level of GDP tend to have access to better health and education, which can lead to better economic well‑being.

Which statement about Canada's economy is false?

There is not much of a relationship between the growth rate of real GDP (gross domestic product) and the business cycle.

If the price of basketballs goes up from $7.99 to $14.99, what can be expected from suppliers of basketballs as a result?

There will be an increase in quantity supplied.

Which of the statements is the best description of a business cycle?

alternating periods of increasing and decreasing economic output

Economic growth is most accurately measured by changes in which variable? For living standards to rise, what must occur?

real GDP Output must grow faster than the population.

As part of a healthy lifestyle, Alex likes to do yoga. Unfortunately, he works for a firm that has fallen on hard times. As a result, Alex sees his salary cut by 12%. Assuming that yoga is a normal good, shift Alex's demand curve for yoga to illustrate the effects of the salary cut.

Moves to left

Economics is characterized by many statistics and measurements. Suppose that an analyst is interested in comparing the economy of today with the economy ten years ago. Which term is least likely to be useful for this purpose?

Nominal GDP

Consider the table. Shirts Pants Year Price Quantity Price Quantity 2013 $5.00 2000 $15.00 3000 2014 $8.00 1900 $20.00 2500 The table contains prices and output for a two good economy. Nominal and real GDP in 2013 are both $55,000. Use the information in the table to answer the questions. What is nominal GDP in 2014? What is real GDP in 2014? Use 2013 as the base year. Real output from 2013 to 2014 has

65200 47000 Decreased

Given information about the economy of Pakistan, calculate Pakistan's GDP. Note that the currency of Pakistan is the rupee. Assume that the values are all current and no conversions need to be made. The government spends 2.50 trillion rupees. Individuals consume 10.20 trillion rupees. Individuals save 5.40 trillion rupees. Businesses invest 1.40 trillion rupees. Foreigners invest 0.51 trillion rupees. Pakistan imports 1.91 trillion rupees. Pakistan exports 1.21 trillion rupees. What is Pakistan's GDP?

10.2 + 1.4 + 2.5 + (1.21-1.91) = 13.4

Use the table to answer the questions. Round your answers to the nearest cent. Country GDP Population Country A $1.5 trillion 100 million Country B $5 trillion 400 million What is the GDP per person (per capita) for country A? What is the GDP per person for country B? Which country has the largest average GDP per person?

15000 12500 Country A

The table shows the units of output a worker can produce per month in Germany and Korea for two different goods: televisions and personal computers. Use this table to answer the question. Number of televisions per month Number of personal computers per month One worker in Germany 40 10 One worker in Korea 16 8 Which of the statements is true? Korea has a comparative advantage in the production of televisions, while Germany has a comparative advantage in the production of personal computers. Korea has a comparative advantage in the production of both goods. Germany has a comparative advantage in the production of televisions, while Korea has a comparative advantage in the production of personal computers. Germany has a comparative advantage in the production of both goods.

Germany has a comparative advantage in the production of televisions, while Korea has a comparative advantage in the production of personal computers.

The table shows the units of steel and personal computers a worker can produce per month in Germany and South Korea. Use this table to answer the question. Tons of steel Personal computers (PCs) Germany 40 10 South Korea 16 8 Which statement about absolute advantage is true? South Korea has an absolute advantage in the production of both steel and PCs. South Korea has an absolute advantage in the production of steel, whereas Germany has an absolute advantage in the production of PCs. Neither country has an absolute advantage in the production of either good. Germany has an absolute advantage in the production of both steel and PCs. Germany has an absolute advantage in the production of steel, whereas South Korea has an absolute advantage in the production of PCs.

Germany has an absolute advantage in the production of both steel and PCs.

"Italy includes cocaine, prostitution and black market alcohol in GDP figures" (The Independent, October 30, 2014). How would you expect the inclusion of these previously excluded underground activities to impact the value of Italy's GDP? Select ALL of the statements that correspond to a deficiency in real GDP per capita as an accurate reflection of the well-being of a nation.

Increase the value of GDP. It does not consider the quality of the environment. It does not value production that is not intended for sale. It does not put importance on physical health.

Suppose there are only two goods produced in an economy: phones and meals. Maria is adept at assembling electronics but has poor skills at preparing food. Mike is an accomplished chef but is not very skilled at assembling electronics. Currently Mike and Maria each work independently, and they each produce both meals and phones. However, they are considering trading some of their respective output with each other, but only if that would allow each person to become more prosperous. Which statement is not true? Mike and Maria will both gain only if they trade the same number of phones for the same number of meals. Customers will gain if Mike and Maria decide to specialize in what they do best and trade their output. Mike should produce more food and fewer phones, and Maria should produce more phones and fewer meals. Mike and Maria would gain by using their time making only the one good that they are best at producing.

Mike and Maria will both gain only if they trade the same number of phones for the same number of meals.

A student is giving a presentation to his class on the advantages of trading the current benefits of the production of consumption goods for the future benefits that economic investment expenditures will yield. The graph shows a hypothetical production possibilities frontier (PPF) to illustrate this concept. Move the point to the combination of goods that represents an increase in investment expenditures that is also efficient. In this case, economic investment expenditures implies increasing the production of

Move Up/Left on line Capital goods relative to consumer goods

What is the difference between real and nominal gross domestic product (GDP)?

Nominal GDP for a given year is measured in dollars of that year, whereas real GDP is measured in dollars of some base year.

Suppose the country of Altaria only produces one style of good, pink tutu. Last year, nominal GDP was $50,000 and this year it is $200,000. What can be definitively concluded?

None of the statements are necessarily true.

Which production possibilities frontier (PPF) reflects increasing opportunity costs? PPF 1 PPF 2 PPF 3 PPF 4 Determine what causes the PPF to take that shape. Factors of production used to produce widgets cannot be used to produce gizmos, and vice versa. Factors of production can be shifted from widget production to gizmo production with no change in productivity. Factors of production can be used in either widget or gizmo production, but some are more productive at producing widgets and some are more productive at producing gizmos. There is only one factor of production and it cannot be used in both sectors at the same time.

PPF 4 Factors of production can be used in either widget or gizmo production, but some are more productive at producing widgets and some are more productive at producing gizmos.

Which is NOT an example of a behavior exhibited in a market economy? For their wedding, Alex and Erika choose Matte Photography instead of Pro Finish Photography, since Matte Photography is cheaper. Despite the advice of its business partners, Puna discontinues its most popular lines of clothing, and chooses instead to produce retro jean jackets and purple sweatpants, thinking that jean jackets and sweatpants are bound to make a fashion comeback. Nettoyer decides to introduce a soap scent, Pomegranate, in response to Schoon's new soap scent, Blood Orange, and Sauber's award-winning scent, Tangerine. The president of the European country of Semolina decrees that pasta must be consumed at all meals in an effort to help domestic pasta makers.

The president of the European country of Semolina decrees that pasta must be consumed at all meals in an effort to help domestic pasta makers.

Below is a table of mortality rates, expressed as the number of children per thousand live births that die yearly, for children in various countries, along with the country's GDP per capita, an economic measure of the relative standard of living in 2005. Country Mortality rate Average annual GDP per capita ($) Sierra Leone 283 600 Nigeria 198 1,000 Zambia 182 900 Ghana 95 2,300 China 37 5,600 Brazil 35 8,100 United States 8 40,100 Korea 5 19,200 Singapore 3 27,800 Based on this information, what conclusion can be made?

The wealthiest countries have the lowest mortality rates.

The statements refer to business cycles. Classify each as either true or false. The point at which an economy turns from expansion to contraction is called a business‑cycle peak. Economic growth is typically steady and occurs without many short term fluctuations between expansion and contraction. Unemployment is typically increasing in the time leading up to a peak. The point at which an economy turns from contraction to expansion is called a business‑cycle depression It is possible that the economic output associated with a nation's most recent business‑cycle trough is higher than the economic output associated with an earlier business‑cycle peak. Recessions are related to GDP, and therefore, are unrelated to business cycles.

True False False False True False

Classify the items according to the expenditure approach to Canada's GDP calculation. Personal Consumption Expenditures (C) Gross Private Domestic Investment (I) Government Consumption and Gross Investment (G) Exports (EX) Imports (IM)

Tyler purchases a latte from his local coffee A local coffee shop buys a new coffee press to help The government builds a new road to accommodate the surge Taking advantage of its growing reputation, a Canadian Colombian coffee beans are sold to Canadian consumers

The accompanying graph represents a demand curve for a bucket of golf balls at the local driving range. Use the graph below to illustrate graphically the effects of an increase in price from $5 per bucket, denoted by the point P★, to $7 per bucket. Based on your movement of the graph, which of the following correctly decribes the law of demand.

Up line left Price and quantity demanded move in the opposite direction.

Suppose that Georgiania was a thriving empire in its golden age. Business was booming and it was the center of international trade under the leadership of Emperor Raphael III. His empire's pride and joy was the trading of green and black tea, and he decreed that their entire economy should be built around it. However, in the mid 1800s, Georgiania experienced a severe economic downturn when the other nations of the world created an embargo on tea from Georgiania, which led to civil strife due to thousands of workers being laid off. A downward fluctuation in the economy like this is known as The correct term is a key component of

a recession. macroeconomics.

Suppose that Paulie and Vinny each can produce ice cream or t-shirts. The table shows the quantity of each good that Paulie and Vinny each can produce in 1 hour, respectively, if they devote all of their time and effort into making the good. Round all answers to two decimal places. Ice cream (cups) T-shirts (quantity) Paulie 3.00 19.00 Vinny 6.00 14.00 a. What is Paulie's opportunity cost of producing a cup of ice cream? b. What is Vinny's opportunity cost of producing a t-shirt? c. Paulie has a comparative advantage in ___________ and Vinny has a comparative advantage in ___________

a. Paulie's opportunity cost: 6.33 t‑shirts b. Vinny's opportunity cost: 0.43 cups of ice cream c. tshirts, icecream

Classify each of the statements as an example of positive or normative analysis. a. The sugar quota in the United States costs consumers $6.08 billion a year. b. Higher tariffs on imported automobiles would decrease the demand for foreign made cars. c. International trade should be be limited because it can cause some workers to lose their jobs. d. International trade makes some people better off and some people worse off. e. The U.S. should impose import quotas in the market for consumer electronics to help domestic workers. f. The sugar quota in the U.S. is good public policy and should be made stronger.

a. Positive b. Positive c. Normative d. Positive e. Normative f. Normative

Please select the economic term that is best described by each statement. a. People have limited resources to satisfy unlimited wants. scarcity business cycle tradeoffs margins entrepreneurship recession b. Everything you do requires giving up something (time, money, etc.). financial capital margins tradeoffs recession budgeting scarcity

a. Scarcity b. Tradeoffs

During the summer, the largest computer game retailer has a massive sale. As prices for computer games fall, consumers purchase more games, ceteris paribus. a. What does the term ceteris paribus mean in this context? allowing all economic variables to change that the basic concepts of economics do not apply holding all else equal (unchanged) that it is an easy to understand statement and does not require complex analysis b. Why, if at all, is the ceteris paribus condition important in economic analysis? It allows the analysis of how changes in every economic variable at once affects an economic environment. It is not important. It allows the analysis of how a single change affects an economic environment.

a. holding all else equal (unchanged) b. It allows the analysis of how a single change affects an economic environment.

Classify each resource used in production as land, labor, capital, or entrepreneurs. a. Ore b. Kendon, a server at Sonic Drive-In c. Farmer Cameron's tractor d. Aunt Sandy's Jammin' Jellies (the business) e. The Rio Grande f. Your coworkers g. Brandon's Taco Truck (the idea) h. Brandon's Taco Truck (the truck itself) i. Lake Tahoe j. Your favorite bartender k. Which resource earns profits?

a. land b. labor c. capital d. entrepreneurs e. land f. labor g. entrepreneurs h. capital i. land j. labor k. entrepreneurs

Classify each scenario according to whether it represents a change in quantity supplied or a change in supply. Each classification matches two of the scenarios. a. If the price of apples decreases to $5 per bushel, Farmer Jack will supply 5 bushels of apples instead of 10 bushels of apples. b. As the price of apples increases, Farmer Jack increases the number of apples he offers for sale c. Johnny, the jeweler, increases his inventory because he expects the price of jewelry to increase at the end of the year. d. Since Johnny is a successful jeweler, Jimmy also becomes a jeweler.

a. quantity b. quantity c. supply d. supply

a. Select the correct definition of the term "comparative advantage." the ability to produce less of a good or service than another over a specified time period a nation offering more favorable trade policy with its allies than with other countries the ability to produce a good or service at a higher opportunity cost than another the ability to produce a good or service at a lower opportunity cost than another the ability to produce more of a good or service than another over a specified time period b. When trading with more developed countries, less developed countries have a comparative advantage in the production of some goods or services. less developed countries do not have a comparative advantage in the production of any goods or services. less developed countries have a comparative advantage in the production of all goods or services.

a. the ability to produce a good or service at a lower opportunity cost than another b. less developed countries have a comparative advantage in the production of some goods or services.

The table presents information about the productivity of digital cameras and personal computers in the United States and Japan. The data are presented in units of output per hour of work. Use this information to answer the question. Digital cameras Personal computers Japan 6 3 United States 8 2 Japan has a(n) ___________________ advantage in producing ______________________ comparative, digital cameras and personal computers comparative, digital cameras absolute, digital cameras absolute, personal computers

absolute, personal computers

Emma wants to sell her motorcycle, and Damarius is looking for a used motorcycle to buy. Damarius takes it for a test drive. Emma knows that the clutch is going out on her motorcycle, the fuel filter is leaking, and the tires will need to be replaced soon. If she does not disclose this information to Damarius and he cannot tell from his test drive, this is an example of

asymmetric information.

For each of the scenarios, calculate the surplus and indicate if it is a producer surplus or a consumer surplus. Alice is willing to spend $30 on a pair of jeans, and has a coupon for $10 off which she found online. She selects and purchases a $35 pair of jeans which cost $35 pre-discount. Alice has a Alice's surplus: $ Nicole has a hockey puck from the 2010 Winter Olympic Games and puts it up for sale on eBay. She will only sell the puck if the winning bid is greater than or equal to $500. After bidding closes, the last bid stands at $500. Nicole has a Nicole's surplus: $ Claire is trying to sell her used calculus textbook online. She asks for $150 or best offer, and is willing to sell for anything over $100. She is able to sell it for $125. Claire has a Claire's surplus: $ Roy is willing to pay $2.50 for a sports drink. He puts $5.00 into the vending machine and pushes the button for the sports drink without noticing that the price has increased to $2.75 until he counts the change he gets back. Roy has a Roy's surplus: $

consumer surplus 5 producer surplus 0 producer surplus 25 consumer surplus -0.25

Which of the scenarios are examples of free riding? a. Bob can pay to support his local public radio station, which depends on donations to be as effective as possible. Bob listens to the radio station several hours per day but never donates since he suspects that other people will donate enough to keep the station on the air. b. Drew always buys the lunch special for $5 at the restaurant across the street from where he works. If he decided to eat at the restaurant after 3:00 p.m., however, he would be unable to get the lunch special, and would instead have to pay $10 for the same food. c. Jim is working on a group project for a class in which he wants a high grade. However, since the grades are assigned to the group as a whole and he knows that the other group members will pick up most of the extra work, Jim calls in sick and plays video games on his Dream Station 64 d. Karl never drives at night, and gets no benefit from street lamps at all. Street lamps are nonexcludable and nonrival in consumption. When the community group tries to collect money to build street lamps, Karl does not donate any money.

free not free free not free

Milk and cereal are an example of complementary goods. Which definition best describes this relationship? goods related in such a way that an decrease in price of one leads to a decrease in the demand for the other goods related in such a way that an increase in quantity demanded of one leads to a increase in the price of the other goods related in such a way that an increase in price of one leads to an increase in the demand for the other goods related in such a way that an increase in price of one leads to a decrease in the demand for the other

goods related in such a way that an increase in price of one leads to a decrease in the demand for the other

Classify the items as to whether or not they would be included in calculating the GDP for Canada. If a country is not specified, assume the action is done in Canada. A college student buys used textbooks. This transaction _____________ included in Canada's GDP. Mrs. Baird's Bakery buys flour. This transaction _____________ included in Canada's GDP. Canadian Tire sells products in Canada. This transaction _____________ included in Canada's GDP. GM assembles and sells cars in Mexico. This transaction _____________ included in Canada's GDP. The Canadian government issues Old Age Security payments to individuals. These transactions _____________ included in Canada's GDP.

is not is not is is not are not

Answer the two questions relating to supply and the law of supply. Which would cause a shift in the supply curve? This would happen if What would happen if the price of kayaks increased? If the price increased,

one of the determinants of supply changed. sellers would offer more kayaks for sale.

Please determine which economic feature is described by the statements below. A __________ occurs as the result of a significant decline in national output. If such a decline goes on for an especially long time, the period will be considered a __________. A __________ is the highest point before output decline, while the lowest point during the decline is known as a business or economic __________ .

recession depression peak / trough

The table shows the tons of steel or number of computers a worker can produce per month in Germany and South Korea. Use this table to answer the question. Steel Desktop Computer Germany 40 10 South Korea 16 8 Germany should produce both goods because it has an absolute advantage in the production of both goods. produce both goods because neither country has a comparative advantage. specialize in computer production, export computers, and import steel. specialize in steel production, export steel, and import computers.

specialize in steel production, export steel, and import computers.

The following table indicates the labor hours needed to produce one unit of output. Sweater Dress Mary 50 hours 10 hours Kate 90 hours 45 hours Kate has a comparative advantage in ____________ , and Mary has a comparative advantage in ____________.

sweaters, dresses

The price system helps agents allocate resources to satisfy human wants in the most efficient way possible. Prices incorporate information about each statement except the number of firms in a competitive market. how much every individual values a good. the most efficient use of resources. future market conditions. Which statement is not likely to occur in a competitive free market economy? some firms exiting the market because they are unable to compete firms unable to adapt or innovate continuing to operate due to government support suppliers increasing production in response to increased prices firms competing by adjusting their prices

the number of firms in a competitive market. firms unable to adapt or innovate continuing to operate due to government support

Indicate whether each statement is true, false, or uncertain. A. The fact that some cyclists do not buy helmets indicates that life does not have infinite value b. Economists suggest that summing the amount of money a person would earn is one way to measure the value of their life c. If there were no free-rider problem, questionnaires would be more reliable; thus, cost-benefit analysis would be accurate d. Majority voting is an efficient way to decide whether a public good should be provided by the government e. Asking community residents how much they would be willing to pay for a security-camera system is a more accurate way to measure benefits than asking them how much they would value the increase security brought by the system f. When price signals are available, cost-benefit analysis is more reliable

true false false false false true

The new country of GoodBusiness has been tracking its business cycle for the past 10 years. The graph illustrates what has been going on in terms of output or employment every year. They do not have information prior to year 1 or after year 9. Therefore, do not assume that the curves end at those years; they do continue on, data was just not available. What year or years illustrate definitive business cycle peaks? There was a peak in What year or years illustrate definitive business cycle troughs? There was a trough in Between what years were there expansions? Expansions occured from

year 4 / year 7 year 3 / year 5 year 3-4 / year 5-7

Lumber and brick are substitutes in home construction. Consider the market for bricks depicted in the graph. Suppose the price of lumber increases due to new regulations for the logging industry. Shift one or both curves in the graph to illustrate the impact this change will have on the market for bricks. Equilibrium price Equilibrium quantity

Demand up and right increases increases

Considering just the U.S., how are GDP and GNP related?

GDP = GNP - (output of U.S. citizens living abroad) + (output of foreign nationals living in the U.S.)

Determine which situation is not a source of market failure.

Ted's Tennis Shoes goes out of business when a competitor begins selling at lower prices.

The accompanying diagram depict's Alex's demand for shoes. a. If shoes cost $50 a pair, how many pairs of shoes will Alex buy? At $50 a pair Alex buys _________ pairs of shoes b. Alex decides to quit her part-time job working at the student union. Adjust the graph to reflect any resulting change in her demand assuming that shoes are a normal good. c. After quitting her job, if shoes are still $50 a pair, Alex will now buy how many pairs of shoes? At $50 a pair Alex buys _________ pairs of shoes

a. 5 b. Left c. 3

Suppose you have the information about the productivity of industries in the U.S. and Japan. The numbers in the table are the units of output per hour of work. Use the data to answer the questions. Steel (in tons) Desktop computers Japan 12 6 U.S. 8 2 a. The U.S. has an absolute advantage in b. The U.S. has a comparative advantage in

a. Neither b. Steel

Choose the answers which, when strung together, create an accurate definition of nominal GDP. a. The nominal gross domestic product is b. The nominal gross domestic product is c. The nominal gross domestic product is produced d. The nominal gross domestic product is defined within a given e. The nominal gross domestic product is valued at

a. all final goods and services b. produced and legally sold. c. within the territorial boundaries of the country. d. time period. e. the prices at which the goods or services sold.

A ___________ is a person who ____________ a public good that others _____________

free rider, enjoys, pay for

For a good or service to be counted in a given year's gross domestic product (GDP), what four criteria must be met?

have a market value, be a final good or service, be produced within a given country, and be produced within a certain time frame

The law of supply explains

the positive relationship between price and quantity supplied.

The country of Emmental has three firms, whose information is displayed in the accompanying table (in thousands). Assume that no international trade exists, and that each firm sells all goods either to the population of Emmental or as an intermediate good. Happy Cowfeed buys intermediate goods, if any, from Creamy Cheese. Farmers Jon's Dairy buys intermediate goods, if any, from Happy Cowfeed. Creamy Cheese buys intermediate goods, if any, from Farmers Jon's Dairy. Calculate the missing information (also in thousands). Happy Cowfeed Inc Farmer Jon's Dairy Creamy Cheese Co Intermediate goods bought $0 $32 (Feed) A - (Milk) Wages $17 $47 $100 Interest Payment $8 $10 $15 Rent $3 $11 $10 Profit $4 $1 $15 Total Costs and Profit $32 $101 B Intermediate Goods Sold $32 $72 C Finished Goods Sold D $29 E Value added by firm $32 F G What is total GDP in the country of Emmental?

A. 72 B. $72+$100+$15+$10+15=$212 C. 0 D. 0 E. the firm's sales equal their total costs and profit = 212 F. total sales of the firm minus the intermediate goods purchased $101−$32=$69 G. $212−$72=$140 GDP. 241

Which describes the fairness-efficiency trade‑off? Government intervention can increase efficiency in a market. The least efficient economic outcome is the fairest outcome. There is always a more equitable outcome that is also more efficient. Actions intended to make economic outcomes fairer can cause efficiency to decrease.

Actions intended to make economic outcomes fairer can cause efficiency to decrease.

Which of the following scenarios involves no opportunity cost? It's Friday night and you stay up late talking and hanging out with your friends. You eat lunch with the chemistry club, which is giving out free pizza for lunch to all who come to their table to get it. Naomi, age 8, is at a bookstore and chooses to buy a book about a young wizard instead of buying a math textbook that she would probably never open. Chez Moi and Chez Nous, two premiere French restaurants with three Michelin stars, both offer you a full-time sous chef job at the same salary. You are ecstatic because you know it is a win-win scenario and choose to work for Chez Nous. All of these scenarios have an opportunity cost.

All of these scenarios have an opportunity cost.

Below is a supply curve for a slice of gourmet pizza. Illustrate on the graph the impact of a decrease in price from $8 per slice, denoted by point P★, to $5 per slice. Based on your graph, which of the following correctly describes the relationship between price and quantity supplied.

Down line left Price and quantity supplied move in the same direction.

Consider the market for iced coffee. Suppose that the price of an iced coffee falls from $4.25 to $3.50. Assuming that the point on the graph below corresponds to the initial price of $4.25, move the point to a new position on the curve to show the impact of this price change (holding everything else constant).

Follow line down to 3.5

Christine and Paul are deciding how to split their time between writing music and lyrics for their new album. Their PPFs for 72 h of work are shown. Christine and Paul have to write music for 8 songs and lyrics for 12 songs (4 songs already have music). When they are done, they can go to a private island and relax from all their hard work. It is possible that they will use more than 72 h. Once they start writing lyrics and music, assuming their hired help packs for them and their plane is waiting outside their door, in how many hours can they board the plane to their relaxing island getaway?

Hours: 96 Christine will write music for 0 songs Paul will write music for 8 songs Christine will write lyrics for 12 songs Paul will write lyrics for 0 songs

Recently, a series of studies have demonstrated the considerable beneficial health effects of food and drink derived from the amaranth plant. This has affected consumer tastes for amaranth flour, pods, root, etc. At the same time, particularly favorable weather has resulted in a bumper crop of amaranth plants. Show the impact of these changes by properly shifting the appropriate curve or curves in the graph.

Supply right Demand right

Andrew, a college student, loves drinking coffee late at night to study for exams. Having a small income, he is used to buying cheap, bad tasting coffee that he needs to grind and brew himself. The coffee tastes putrid but, with enough cream and sugar, Andrew is able to tolerate it. Occasionally, he does go out to Starbucks when he has spare money. After graduation, Andrew gets a job working at a database firm as a programmer. His income is now a healthy $75,000 a year and he decides he's had enough bad tasting coffee. He ends up buying coffee daily from Starbucks even though it costs significantly more. Andrew's demand for Starbucks coffee changed as a result of a change in a related good or service. a change in technology. a change in income. a change in expectations. a change in the number of consumers.

a change in income

According to the law of demand,

a decrease in price increases quantity demanded.

Select the best definition of a public good.

a good that is nonexcludable and nonrival in consumption

An economic institution that facilitates interaction between buyers and sellers is called A market exists when A market will

a market exchange money for goods/services always tend towards equilibrium

Please complete that statements below to indicate how GDP and living standards are affected in each scenario. a. If unpaid housework were formalized in GDP, GDP would __________, and living standards would __________ b. Given improved production technologies, GDP would __________, and living standards would __________ c. Suppose the black market shrinks because firms shift to the formal sector, but production remains the same. GDP would __________, and living standards would __________ d. If workers worked less but produced the same amount, GDP would __________, and living standards would __________ e. If volunteers cleaened a river used for swimming, GDP would __________, and living standards would __________ f. Assume people dislike inequality. If income inequality decreases, GDP would __________, and living standards would __________ g. If school quality were to increase as a result of parental involvement, GDP would __________, and living standards would __________ h. If school quality increased as a result of the procurement of new equipment, GDP would __________, and living standards would __________.

a. rise/unchanged b. rise/rise c. rise/unchanged d. unchanged/rise e. unchanged/rise f. unchanged/rise g. unchanged/rise h. rise/rise

Choose the multiple choice answers which, when strung together, create an accurate definition of GDP. The U.S. nominal gross domestic product is legally produced within a given and valued at

all final goods and services within the territorial boundaries of the United States time period the prices at which the goods or services are sold.

Which of the events is likely to occur when the business cycle is in a period of recession (contraction)? Which of the events is likely to occur when the business cycle is in a period of expansion?

an increase in unemployment an increase in economic growth

From an economic context, select the correct definition of a market. Select all examples of a market.

an institution that brings together buyers and sellers of goods or services the free‑agent signing period in the NFL where players hoping to sign with a team interact with teams looking for additional players the New York Stock Exchange Trader Joe's: a grocery store frequented by "foodie" types a local farmer's market

Use the accompanying graphs below to answer the questions about the market for Apple's current generation iPhone. a. Move the supply and/or demand curve to illustrate how an across-the-board cut in the price of all apps on the Apple App Store affects the market for iPhones. The shift in a is due to a change in the price of a: b. Move the supply and/or demand curve to illustrate how a decrease in the price of Samsung's current Galaxy smartphone impacts the market for iPhones. The shift in b is due to a change in the price of a:

demand up/right complimentary demand down/left substitute

Label the statements as increasing GDP in either Canada or the United States. Toyota, a Japanese company, manufactures cars in San Antonio, Texas Toyota, a Japanese company, manufactures cars in Toronto, Ontario ATI Technologies, a Canadian company, operates in Alberta Starbucks, a U.S. company, opens stores in New York state Tim Horton's, a Canadian company, opens coffee shops in New England

increases GDP in the United States Increases GDP in Canada Increases GDP in Canada Increases GDP in the United States Increases GDP in the United States

In a market economy, individuals' economic lives are said to be interrelated with many other individuals and firms. almost completely controlled by government regulation. illegal and in violation of government rules on prices and sales. based more on production than on consumption.

interrelated with many other individuals and firms.

Holding everything else constant, producers are willing to offer more units for sale when the price at which they can sell their product increases. This concept is known as the

law of supply

Suppose that a recent study shows that non‑fatal traffic accidents have risen due to an increase in aggressive driving. This information comes after the implementation of mandatory seat belt laws requiring all drivers and passengers to wear seat belts. This relationship could be an example of

moral hazard.

Determine whether each description refers to nominal gross domestic product (GDP) or real GDP. A measure of an economy's output using current prices. A measure of an economy's output using constant prices. A measure of output that is adjusted for inflation. A measure of output that is not adjusted for inflation.

nominal real real nominal

Identify the characteristics that describe each good listed below. Note that each good will be described by two characteristics. "Rivalrous" is also referred to as "rival in consumption." Consider only the immediate benefits and costs, not any externalities. national defense Pay-Per-View cable television a Hot Pocket sandwich private classroom education pajamas a unicycle

nonexcludable, nonrivalrous excludable, nonrivalrous excludable, rivalrous excludable, rivalrous excludable, rivalrous excludable, rivalrous

Consider the maximum amount of a product that sellers are willing and able to provide for sale over a relevant range of prices, holding all other factors constant. Economists call this When the market price of a good increases, the amount that sellers are willing to offer for sale increases. Economists call this

supply law of supply

Aurora Township is asking all of its citizens to chip in and donate money to build a new library. Tommy thinks he already pays enough money in taxes, so he chooses not to donate. He knows that even if he does not contribute he will be able to use the library once it is built. This is an example of

the free rider problem

Vincent and Jean are two cooks who work in a village. Each of them can either bake cakes or make pizzas. Every ingredient is readily available to them, and the only scarce resource is the cooks' time. Vincent can bake 10 cakes or make 5 pizzas in an hour. Jean can bake 12 cakes or make 8 pizzas in an hour. Please answer the four questions. 1. Which cook has the absolute advantage in baking cakes? 2. Which cook has the absolute advantage in making pizzas? 3. Which cook has the comparative advantage in baking cakes? 4. Which cook has the comparative advantage in making pizzas?

1. Jean 2. Jean 3. Vincent 4. Jean

The following table shows the units of output a worker can produce per month in Germany and South Korea. Use this table to answer the following question. Steel (tons) PC (Personal Computer) Germany 80 20 South Korea 32 16 The opportunity cost of one ton of steel in Germany is The opportunity cost of one ton of steel in South Korea is Which country has a comparative advantage in steel production?

1/4 PC 1/2 PC Germany

Use the table to answer the questions. Round your answers to the nearest cent. Country Gross domestic product (GDP) Population Country A $2.5 trillion 100 million Country B $6 trillion 960 million What is the GDP per capita for Country A? What is the GDP per capita for Country B? Which country has the largest average GDP per capita?

25000 6250 Country A

The chart gives prices and output information for the country of Utopia. Use this information to calculate real and nominal GDP for both years. Use 2017 as the base year. 2016 2017 Price Quantity Price Quantity Ice cream $7.00 600 $3.00 400 Blue jeans$70.00 20 $20.00 90 Laptops $300.00 5 $300.00 5 2016 nominal GDP: $ 2017 nominal GDP: $ 2016 real GDP: $ 2017 real GDP: $

7100 4500 3700 4500

Using the graph of a production possibilities frontier (PPF), please answer the questions. Which point demonstrates productive efficiency? D C A B At which point on the graph is it possible to produce more tangerines without reducing the quantity of bananas that are also produced? C B D A

C A

Suppose the local government imposes a price floor equal to $350 on choogaluggas. Move the price floor line to reflect this change, then use the graph to complete the three calculations. Calculate consumer surplus without the price floor (CSwithout). CSwithout: $ Calculate consumer surplus with the price floor (CSwith). CSwith: $ Calculate the deadweight loss (DWL) associated with the price floor. DWL: $

Consumer Surplus without the Price Floor: ($250 x 250) / 2 = $31,250 Consumer Surplus with the Price Floor: ($150 x 150) / 2 = $11,250 DWL: (200 x 100)/2 = 10,000

The figure shows the supply and demand for online music. Suppose that an economic downturn decreases household wealth and erodes consumer confidence. Move the supply and/or demand curves to reflect the primary effect this would have on the market for online music. You can assume that online music is a normal good. Also select the end result of equilibrium price and quantity. Equilibrium price Equilibrium quantity

Demand left/down decreases decreases

To the citizens of the country of Merka, there is no meal better than a hot dog nestled securely in a hot dog bun. Relish is optional, mustard is not. The hypothetical market for hot dogs in Merka is graphed. Suppose that the price of hot dog buns decreases. Illustrate the impact of this change on the market by manipulating the appropriate curve or curves. The equilibrium price of hot dogs The equilibrium quantity of hot dogs

Demand up and right increases increases

Stone and brick are substitutes in home construction. Consider the market for bricks depicted in the graph. Suppose the price of stone increases due to new regulations for the stone quarrying industry. Illustrate the impact this will have on the market for bricks. Equilibrium price Equilibrium quantity

Demand up/right increases increases

Match each definition with the appropriate measurement of economic output. a. the market value of all final goods and services produced by resources owned by citizens of a particular country in a given year b. GDP adjusted to base year prices c. GDP divided by population d. GDP adjusted for differences in the cost of living in different countries e. the market value of all final goods and services produced by resources located in a particular country in a given year

GNP real GDP GDP per capita GDP PPP nominal GDP

In which scenario is an individual's behavior least likely to change? A basketball team manages to sign a trio of famous basketball stars who then clamor for other players to come join their team to win a guaranteed championship. The country of Ravamolk enacts a policy to fine companies 20% of their earnings if the safety standards in their factories do not reach acceptable work conditions. In an effort to make people eat healthier, the city of Bakersville tells its residents to eat wheat bread instead of white bread. The city of Saskatoon chooses to give its residents a penny for each soda can they recycle in an effort to promote environmental awareness.

In an effort to make people eat healthier, the city of Bakersville tells its residents to eat wheat bread instead of white bread.

In Louisiana, the price of beef recently increased due to the popularity of the Keto diet. Leather is a byproduct of raising cattle and producing beef for sale. Show the effect of this event by shifting the appropriate curve in the market for leather shown in the graph

Line down (more product, less expensive)

The graph illustrates the market for hotel rooms in Cancun. Suppose the local government imposes a price floor of $300. Move the P* line to reflect the price floor, and place the triangle on the graph to represent the area of the deadweight loss. Calculate the size of the deadweight loss. size of the deadweight loss: Calculate the decrease in consumer surplus caused by the price floor. decrease in consumer surplus:

Line up, Triangle is $200-$300 and 400-500 5000 22500

What does the price of diesel fuel in Russell, KS have to do with the price of bread in Boulder, CO?

Since farmers in Kansas use diesel fuel‑powered equipment to plant, harvest, and transport grain, an increase in the price of fuel may increase the price of bread.

Consider an economy operating at full employment. Suppose the growth rate of labor productivity remains constant, but there is a decrease in aggregate demand (AD). The decrease in aggregate demand will result in Deviations from full employment that are the result of variations in the growth rate in potential GDP are called

a recession and a decrease in the price level. real business cycles.

In an attempt to increase the consumption of healthy foods, the government offers subsidies to the producers of kale. Show the effect of this subsidy by shifting one or both of the curves in the market for kale shown in the graph.

Supply down

The graph represents the market for breakfast cereals. Now, suppose that one of the industry's major suppliers of breakfast cereal has decided to exit the market to focus on its snack foods. At the same time, the average price of cereal has increased and the total amount of cereal sales has increased. Manipulate the graph to demonstrate these changes in the market for cereal.

Supply left one Demand up two

You are the manager of Frito-Lay's Cheese Puffs account, and you notice that when the price of Cheetos increases, there is an increase in demand for Cheese Puffs. What is the economic relationship between these goods that explains this behavior? The increase in the price of Cheetos causes an increase in the demand for Cheese Puffs; therefore, these goods are complements. The increase in the price of Cheetos causes a decrease in the demand for Cheese Puffs; therefore. these goods are complements. The increase in the price of Cheetos causes an increase in the demand for Cheese Puffs; therefore, these goods are substitutes. The increase in the price of Cheetos causes a decrease in the demand for Cheetos; therefore, these goods are substitutes.

The increase in the price of Cheetos causes an increase in the demand for Cheese Puffs; therefore, these goods are substitutes.

This year is expected to be a great one for selling walking shoes in Georgia. At very low prices, only the most efficient shoemakers are able to sell. There are two shoe producers that operate with the most cost-effective equipment and skilled personnel, each of which can put 1000 pairs of shoes in the market at $10.00. At a higher price, eight more shoemakers will enter the market. Each producer makes 1200 pairs of shoes at $25.00 per pair. If the price goes to $40.00 per pair, the existing firms increase production to 1400 pairs of shoes each, plus four small shops open, each of which produces 500 pairs of shoes. Using the information above, graph the supply curve for walking shoes by dragging the provided red points to the correct coordinates of price and quantity.

The line goes up. 2,000 @ 10 12,000 @ 25 16,000 @ 40

One day, a local theme park charges $40 per person for admission, and 10,000 people visit the park. On another day, the park charges $60 per person, and 20,000 people pay to enter the park. Which explanation best describes why the park sees an increase in attendance when the price is higher? High prices signal a high quality park experience. The low-attendance day falls on an autumn Wednesday, while the high-attendance day falls on a summer Saturday. Theme-park tickets are part of a rare class of goods which do not follow the Law of Demand. The higher price gives the park an incentive to expand capacity and permit more visitors.

The low-attendance day falls on an autumn Wednesday, while the high-attendance day falls on a summer Saturday.

Determine if each of the statements regarding business cycles and how they can impact an economy is true or false. a. The four phases of business cycles are peaks, troughs, expansions, and recessions. b. Business cycles can be described as fluctuations from the economy's long‑term growth trend. c. Business cycles last for approximately nine months. d. When a business cycle reaches the trough, the economy is usually operating at its capacity. e. The peak of a business cycle is followed by a downturn or recession. f. Business cycles are common in emerging economies but not in developed economies.

True True False False True False

Assume Spain and Tunisia can both produce grain and dates and that the only limited resource is the farming labor force, with land, water, and all other resources plentiful in both countries. Each farmer in Spain can produce 10 tons of grain or 5 tons of dates in a season. Each farmer in Tunisia can produce 10 tons of grain or 25 tons of dates. Which country has the absolute advantage in producing dates? Which country has the absolute advantage in producing grain? Which country has the comparative advantage in producing dates? Which country has the comparative advantage in producing grain?

Tunisia Neither Tunisia Spain

The Japanese car maker Honda owns production facilities in Marysville, Ohio. If the cars made there are sold exclusively in the United States, in which category would the cars be counted?

U.S. GDP

Select all of the statements that provide evidence supporting the claim that fighting poverty is a public good.

When poverty is reduced, no one can be excluded from enjoying the benefit to society of having a lower poverty rate. Living in a world with little or no poverty would be a benefit everyone would enjoy without diminishing anyone else's enjoyment of it. If fighting poverty were left to charity, most people would not contribute.

The accompanying table contains the individual demand schedules of dark chocolate for Vanessa and Angela. Assuming they are the only people in the market for dark chocolate, place each of their individual demand curves and the market demand curve at the correct locations on the accompanying graph. Price of dark chocolate(per pound) = $8 $1 Pounds of dark chocolate demanded by Vanessa 1 3 Pounds of dark chocolate demanded by Angela 3 5

You really can't figure this out?

Suppose that the economy of El Paso creates only cowboy boots and pecans. The production possibilities frontier (PPF) per year for El Paso is illustrated in the graph and is currently producing at the point labeled A. Move point B to show the economy efficiently producing one thousand more cowboy boots. Now, determine the opportunity cost of producing an additional 1,000 cowboy boots, i.e., shifting from point A to point B. Enter your answer specified to one decimal place. a. opportunity cost: Shift point C to indicate El Paso increasing production of cowboy boots from point B by another thousand. Determine the opportunity cost of shifting from point B to point C. Enter your answer specified to one decimal place. b. opportunity cost: c. This PPF exhibits what kind of opportunity costs? constant increasing decreasing

a. 1400 pecans b. 3600 pecans c. Increasing

Each scenario illustrates a principle of economics. Classify each scenario according to the principle that best fits it. a. An educational software company wants to expand the number of economics questions that it offers and is considering hiring another economist. The company compares how much adding another worker will improve the product to the additional cost. b. Ava finds that there is not enough time after work to have dinner, exercise, and watch TV, and she must make choices about how to use her limited time. c. On Black Friday, there are huge sales for electronics at many retail stores. David must decide between buying a camera at one store or a flat screen TV at another store.

a. Marginal analysis b. Resource scarcity c. Opportunity cost

Determine which economic principle is illustrated by each scenario. a. The owner of a snow cone trailer realizes that the demand for snow cones is low during the winter and closes shop until the temperature warms back up near summertime. b. The local river has so much pollution that three-eyed fish are forming. Regulations are therefore enacted to limit the amount of chemicals dumped into the river. c. At a high-end restaurant, the restaurant owner has one chef at a meat station, one chef at a vegetable station, and one chef, who has an artistic eye, plate the food she is given. The result is increased service speed, enabling the kitchen to serve more customers in an evening. d. During the summer, a bumper crop of oranges in Florida causes a surplus in the supply of oranges nationwide. As a result, prices fall to compensate for the surplus, and consumers enjoy the fruits of the farmers' labor.

a. Market efficiency b. Government intervention c. Specialization d. Equilibrium

Indicate whether each event described falls mainly in the field of microeconomics or that of macroeconomics. a. A tax on tires increases the price of tires paid by car owners. b. As a result of a severe recession, the total output, or gross domestic product, of a nation falls by 4 percent. c. Increased consumer spending causes the national unemployment rate to fall. d. Increased consumer spending causes the rate of inflation to rise. e. Optimism about future car sales leads General Motors to hire more auto workers. f. Robotic technology reduces the demand for auto workers.

a. Micro b. Macro c. Macro d. Macro e. Micro f. Micro

Identify the statements as either a microeconomic issue or a macroeconomic issue. a. In January of 2014, a person made a personal budget. b. The Canadian unemployment rate was lower in January of 2014 than it was in January of 2012. c. A person blames inflation for the general increase in prices at the grocery stores throughout British Columbia. d. A person gets a raise at work.

a. Micro b. Macro c. Macro d. Micro

Suppose that, to make bread affordable for low-income consumers, the government imposes a price ceiling on bread. a. In the graph below, adjust the price line to show a binding price ceiling. b. Which of the following are potential consequences of a price ceiling on bread?

a. Move line below equilibrium b. a decline in the quality of bread a shortage of bread the development of a black market in bread

Determine if the following items represent an example of positive economics or normative economics. a. The richest 1% of Americans should pay more taxes than the rest of the 99%. b. A decrease in the supply of coconut will increase the price of German chocolate cake, a good which requires coconut shavings as a key ingredient. c. The higher the minimum wage, the higher the price of goods and services is likely to be. d. Social welfare spending in Sweden occupies too large a portion of the national budget.

a. Normative b. Positive c. Positive d. Normative

Classify the given goods according to whether or not they would be included in calculating the GDP for the United States. If a country is not specified, assume the action is performed in the United States. a. GM's assembly and sale of cars in Mexico b. resale of used textbooks to college students c. sale of wheat to Mrs. Baird's Bakery d. Honda's assembly and sale of cars in the U.S. e. Ocean Spray purchases plastic to make bottles f. Old Navy purchases mannequins to display clothes

a. Not b. Not c. Not d. Included e. Not f. Included

Economists classify resources, or factors of production, into four general categories. Determine whether each statement about resources is true or false. a. The resource category land refers to all natural resources, including fertile land, forests, mineral deposits, solar and wind energy, and water. b. The resource category labor refers to the productive activities of workers. c. The resource category capital refers to financial assets, such as bank accounts, bonds, certificates of deposits, and stocks. d. The resource category entrepreneurial ability refers to business skills such as the management of resources, the drive to innovate, and the willingness to bear risk.

a. T b. T c. F d. T

a. Suppose the University Health Center receives flu vaccinations at the beginning of each flu season and offers these vaccines to students at the market price of $20.00 each. Of course, college students have varying budgets—some have money to spare, while others have difficulty meeting basic needs. Additionally, some students have pre‑existing conditions, such as asthma or diabetes, that place them at high risk for the flu. Who will receive the vaccines if the University Health Center sells them at the $20.00 market price? the students who pay $20.00 for them the students who most want them the students who most need them b. Suppose the school sells all of its vaccines at the market price of $20.00. What does the school maximize? effciency fairness c. Suppose now that the school wishes to ensure that no students with diabetes or asthma go without the drug, owing to an inability to pay for it. Because the Health Center does not know the budget of each student, it decides to offer vaccines free to students who can provide a doctor's note stating that they have a pre‑existing condition. The school is now seeking a greater degree of self‑interest. fairness. efficiency.

a. The students who pay $20 for them b. Efficiency c. Fairness

The day-to-day living conditions of modern Americans are very different from what they were in the 20th century. While doing research for an economics project, Charlie discovers that more households today, as compared to households 100 years ago, have electricity, air conditioning, and a car. a. Which of the following explains why modern Americans enjoy a higher standard of living than Americans 100 years ago? Americans have prospered and earned more money, due to absence of recessions. Market failure has been nonexistent. The invisible hand has guided all nations around the world to prosperity. There has been economic growth in our society. b. In which field do researchers focus on investigating the phenomena described? Sociology Political Science Economics Business

a. There has been economic growth in our society b. Economics

Consider the graph. (PPF) a. According to the graph of the production possibilities frontier, what is the opportunity cost of the third widget? about 0.5 gizmos about 6 widgets about 7.5 widgets about 3 gizmos b. What best explains the shape of the production possibility frontier in the graph? This economy has the capacity to produce different combinations of widgets and gizmos. The production of widgets and gizmos require the same resources to produce. Producers can move from one point to another on the production possibilities frontier in response to consumers' demands. Some resources used to produce one of the goods are not as productive when they are used to produce the other good.

a. about 0.5 gizmos b. Some resources used to produce one of the goods are not as productive when they are used to produce the other good.

Classify each statement as describing productive efficiency, allocative efficiency, or a situation that is inefficient. a. Flour, which can be used to make many products, is used to make waffles and muffins because of the high demand for each product. b. To produce one more bagel, the output of donuts must fall. c. Herb Farmer decides to use his flour and sugar to make three cakes and three loaves of bread, which his customers have demanded. d. Herb Farmer makes two cakes and two loaves of bread but uses enough flour to make three cakes and four loaves of bread. e. If Herb Farmer wants to produce one more cake, he needs to give up two loaves of bread. f. Herb Farmer decides to use his ingredients to make cakes, but his customers prefer donuts.

a. allocative b. productive c. allocative d. not e. productive f. not

As prices of computer games fall, consumers purchase more games, ceteris paribus. a. What does the term ceteris paribus mean in this context? that the basic concepts of economics do not apply allowing all economic variables to change that the statement is easy to understand and does not require complex analysis holding all else equal (unchanged) b. Why, if at all, is the ceteris paribus condition important in economic analysis? It is not important. It enables the analyst to simultaneously ascertain the roles of all relevant variables in producing a given outcome. It enables the analyst to isolate the role of one variable in producing a given outcome.

a. holding all else equal (unchanged) b. It enables the analyst to isolate the role of one variable in producing a given outcome.

Each of the scenarios occurred this year, but it fails to fit one of the criteria for the definition of Canada's GDP. Please classify the scenarios under the criteria it fails to meet. a. Dr. A. Just trades chiropractic treatments with Kit E. Katz for dog-sitting services. This transaction violates the _____________ criterion. b. Don E. Brook buys only vintage pants because he wants a new look. This transaction violates the _____________ criterion. c. Easton West buys Roots sports gear. Roots is headquartered in Toronto, Ontario but produces in India. This transaction violates the _____________ criterion. d. Joy Rider makes guacamole from avocados that her neighbor, Bea Kind, gave to Joy, from her tree. This transaction violates the _____________ criterion. e. Yum n' Yummy restaurant buys celery, carrots, and tomatoes for use in the famous Yum n' Yummy omelet. This transaction violates the _____________ criterion. f. Trudy Ages buys her dream home that was made in the 1970's. This transaction violates the _____________ criterion.

a. market value b. produced within a certain time frame c. produced within a country's boundaries d. market value e. final good/service f. produced within a certain time frame

Suppose that policy makers are concerned that the price of corn may get too low. The market for corn is depicted in the accompanying diagram. a. What type of price control would policy makers use to keep the price of corn from getting too low? b. Suppose that the government implements the price control that you have selected. Which of these prices would be binding?

a. price floor b. 7

The Salmon River is famous for its abundance of salmon. Because the river is part of the community of Salmon Falls, anyone is able to fish in it. At the most recent town hall meeting, the mayor of Salmon Falls expressed concern that the river was being overused. She said that fishermen had no incentive to use the river sustainably since their goal was to sell as much salmon as possible. This is an example of

common property resource.

Which of the four options best represents specialization and its relationship with trade? absolute advantage economic crises comparative advantage all the above

comparative advantage

The lease on Allison's apartment will expire next month, and she wants to move closer to campus. There are two apartments that she likes. Both are close to campus and in her price range. The first one is next door to a garage where local bands often practice late at night. The second one is next door to a donut shop that opens at 5 a.m. If she likes to stay up late and loves listening to all kinds of music, she will view the bands practicing as a(n) If she is a morning person and loves the smell of donuts, she will view the donut shop as a(n) If her roommate hates loud music, and the smell of donuts makes her sick, she will reject both apartments due to what she sees as

external benefit external benefit external cost

Megan has a 1 hr gap in her course load for the fall semester. There are two courses available for her to take at that time: reading piano sheet music and beginning rock climbing. She does not have any experience with piano or rock climbing. In the end, she decides to enroll in the rock climbing course, despite her fear of heights. Identify which activity exhibits a potential trade-off with enrolling in rock climbing. learning rock climbing skills learning to read piano sheet music overcoming her fear of heights none of the above

learning to read piano sheet music

Answer the two questions relating to demand and the law of demand. a. Which can cause a shift in the demand curve? A change in Which of the choices illustrates the law of demand? Pat

one of the determinants of demand wants to buy more candy bars at $1 than at $2.

In the town of Merryweather, citizens are very serious about their Christmas light displays. Consider each scenario and the type of good described. Bob's Hardware Store stocks a large selection of the most commonly used lights for sale. Bob's lights are Merryweather's courthouse square is well‑known for its elaborate decorations, including a real Santa for the children. Unlike at the mall, parents are not required to buy a photo before their children can talk to Santa, but the line is long and Santa leaves at 8:00 p.m. Santa is a Maple Havens, an expensive gated community, has tasteful light displays sponsored by the neighborhood association. Only those who know the code to unlock the gates are able to drive through the streets and enjoy the lights. Maple Havens's lights are As part of the holiday celebration, the local church bells play carols every evening. The church bells are

private goods common resource club goods public goods

In a competitive market, all of the choices along the production possibility frontier display ________________ efficiency, while the specific choice on the frontier that society picks is the one with _______________ efficiency. productive; allocative allocative; productive allocative; allocative productive; productive

productive; allocative

Determine which economic feature is described by the statements. A __________ occurs as the result of a significant decline in national output. If such a decline goes on for an especially long time, the period will be considered a __________. A __________ is the highest point before output decline, whereas the lowest point during the decline is known as a business or economic __________.

recession depression peak/trough

For each of the scenarios, identify the type of income earned based on the categories of income approach. a. Anita House bought a duplex to earn additional income. b. Mos Quito works as an exterminator for Bugs B Dead, Inc. c. Exterminators Plus is an owner‑operated business. d. Noah Count, Inc., collects $2,000 in sales tax every month. e. Noah Count, Inc., recently paid out dividends to stockholders f. Bugs B Dead, Inc., pays its mortgage promptly every month.

rental income compensation of employees proprietor's income miscellaneous adjustments corporate profits net interest

Classify each of the foods goods according to whether it is rivalrous, nonrivalrous, excludable, or nonexcludable. Rivalrous is also referred to as rival in consumption. a. A sports team t-shirt b. The air we breathe c. Atlantic bluefin tuna in the Mediterranean Sea d. A toll road in normal traffic

rivalrous and excludable nonrivalrous and nonexcludable rivalrous and nonexcludable nonrivalrous and excludable

The table contains the demand and supply schedule for apartments in a city. Suppose the city council feels that the equilibrium rent is too high and imposes a price ceiling of $750/month. Rent/month Quantity demanded Quantity supplied $1,750 300 4800 $1,500 600 2400 $1,250 1200 1200 $1,000 2400 600 $750 4800 300 The price ceiling results in a The city now has a shortage or surplus of how many apartments?

shortage 4500

Which definition best describes real GDP? Consider a simple economy that produces two goods: fries and burgers. The table shows the economy's production over several years. Calculate the real GDP for 2009 using 2007 as the base year. Year Price of fries (in dollars) Number of fries Price of burgers (in dollars) Number of burgers 2007 5.00 3 3.00 3 2008 7.00 3 5.00 3 2009 8.00 4 8.00 6 real GDP:

the production of goods and services valued at constant prices (5.00 * 4) + (3.00 * 6) = 38

Demand is best described as The law of demand says that In a market economy, there is _____________ relationship between the price of a good and the amount of a good that buyers are willing and able to purchase.

the quantity of a good or a service that people are willing and able to purchase at different possible prices. as the price of a good increases, buyers are willing and able to purchase less. inverse or negative

What factors into the opportunity cost for a decision? the difference between the benefits of the first and second best choices the sum of all benefits from all foregone alternatives time spent due to the decision actual financial cost of the decision benefits from the best foregone alternative

time spent due to the decision actual financial cost of the decision benefits from the best foregone alternative

What is the main goal of macroeconomic policy activism? to increase aggregate demand through tax cuts to increase aggregate demand by expanding the size of the federal government to increase government debt to ensure that only politicians that believe in Keynesian economics get elected to reduce the severity of business cycles

to reduce the severity of business cycles

Which is the best definition of efficiency? when everybody is as well off as possible when everyone can be made better off by using resources more wisely when nobody can be made better off without making someone worse off when somebody can be made better off without making someone worse off when the only way somebody can be made better off is by making another better off

when nobody can be made better off without making someone worse off