Econ 1101 final chapters 3 & 19

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Refer to the table. If demand is represented by columns (3) and (2) and supply is represented by columns (3) and (5), equilibrium price and quantity will be:

$8 and 60 units

Macroeconomics is studied from all these perspectives except

economic budgets

Net exports are

exports less imports

Macroeconomics focuses on the following policy(s) within the government

fiscal and monetary policy

which of the following statements is correct

if supply increases and demand decreases equilibrium price will fall

A market is in equilibrium

if the amount producers want to sell is equal to the amount consumers want to buy

the demand curve shows the relationship between

price and quantity demanded

the supply curve shows the relationship between

price and quantity supplied

An effective ceiling price will

result in a product shortage

in presenting the idea of a demand curve economists presume that the most important variable in determining the quantity demanded is

the price of the product itself

Which of the following is not an economic investment

the purchase of 100 shares of at&t by a retired business executive

which two variables, such as in the "law of supply" have a positive correlation

they tend to move in the same direction

the demand for a good or service is determined by

those who buy the good or service

which of the following is most likely to be an inferior good

used clothing

a market

is an institution that brings buyers and sellers together

Refer to the above diagram. A shortage of 160 units would be encountered if the price was

$0.50

Refer to the diagram. The equilibrium price and quantity in this market will be:

$1.00 and 200

Refer to the above diagram. A surplus of 160 units would be encountered if the price was:

$1.60

Answer the question on the basics of the following data. All figures are in billions of dollars: The gross domestic product for the above economy is:

$110

Macroeconomics consider the following the most important goals, except

Balanced Budgets

The rationing function of prices refers to the:

Capacity of a competitive market to equalize quantity demand and quantity supplied

the relationship between quantity supplied and price is_______ and the relationship between quantity demand and price is________

Direct, inverse

Refer to the above diagram. A decrease in quantity demanded is depicted by a:

Move from point y to point x

if the current prices of all goods and services rose, but the quantity produced remained unchanged what would happen to nominal and real GDP

Nominal GDP would rise but real GDP would be unchnaged

The law of demand states that, other things equal

Price and quantity demanded are inversely related

the law of supply indicates that, other things equal:

Producers will offer more of a product at high prices than at low prices

Assume a drought in the great plains reduces the supply of wheat. Noting that wheat is a basic ingredient in bread and potatoes are a consumer substitute for bread, we would expect the price of wheat to

Rise the supply of bread to decrease and the demand for potatoes to increase

Refer to the above diagram. a decrease in demand is depicted by a

Shift from D2 to D1

Suppose that corn prices rise significantly if farmers expect the price of corn to continue rising relative to other crops then we would expect:

The supply to increase as farmers plant more corn

which of the following will not cause the demand for product k to change

a change in the price of k

If two goods are compliments

a decrease in the price of one will increase the demand for the other

A nation's gross domestic product (GDP)

can be found by summing up C + I + G + Xn

Digital cameras and memory cards are

complimentary goods

a shift to the right in the demand curve for product A can be most reasonably explained by

consumer preferences have changed in favor of A so that they now want to buy more at each possible price point

Suppose an excise tax is imposed on product x we can expect this tax to

decrease the demand for complimentary good y and increase demand for substitute product z

Michael rents 5 movies per month when the price is $3 per rental and 7 movies per month when the price is $2 per rental. Michael's action demonstrates the law of

demand

If Z is an inferior good, an increase in money income will shift the:

demand curve for Z to the left

Price floors and ceiling prices

interfere with the rationing function of prices

other things equal, an excise tax on a product will

increase its price

a demand curve

indicates the quantity demanded at each price in a series of prices

an increase in the quantity supplied is depicted by a

move from point y to point x

the term "ceteris paribus" means

other things equal

the location of the product supply curve depends on the

production technology

Camille's creations and julia's jewels both sell beads in a competitive market. If at the market price of $5, both are running out of beads to sell (they can't keep up with the quantity demanded at that price) then we would expect both camille and julia to

raise their price and increase their quantity supplied

a decrease in supply is depicted by a

shift from S2 to S1

a leftward shift of a product supply curve might be caused by

some firms leaving an industry

the forces that make market economies work are

supply and demand

each of the following is a determinant (shifter) of demand except

technology

which of the following would most likely increase the current demand for gasoline

the expectation by consumers that gasoline prices will be higher in the future

Graphically the demand market curve is

the horizontal sum of individual curves


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