ECON 1123 - Exam 1

Pataasin ang iyong marka sa homework at exams ngayon gamit ang Quizwiz!

1.25

a fall in the price of lemons from $11 to $9 per bushel increases the quantity demanded from 35 to 45 bushels. the price elasticity of demand is

zero elasticity

a good with a vertical demand curve has a demand with

1.6

a rise in the price of cabbage from $14 to $18 per bushel increases the quantity supplied from 8,000 to 12,000 bushels. the elasticity of supply is

fully utilizing all of its productive resources

a society that is producing on its production possibility fronteir is

20 units

according to the diagram of the figure above, an allocatively efficient use of resources requires that production and consumption be

command

allocating resources by the order of someone in authority is a _______ allocation method

an opportunity cost

because we face scarcity, every choice involves

the ability to perform an activity at a lower opportunity cost than anyone else

comparative advantage is

cross elasticities are negative

if goods are complements, then their

the demand curve for a normal good shifts leftward

if income decreases or the price of a complement rises

A and B are substitutes

if the cross elasticity of demand between goods A and B is positive

is an inferior good

if the income elasticity of demand for spaghetti is -1.3, then spaghetti

the way things ought to be

in economics, normative statements are about

$45,000

in the above figure, when the efficient quantity of gloves is produced, the total surplus is

1 video tape

in the figure above, at point A what is the opportunity cost of producing one more audio tape

marginal benefit of a computer exceeds the marginal cost of a computer, so more computers

in the figure above, if 1 million computers are produced per year, then the ________ should be produced to achieve efficient resource use

10 ties and 12 shirts

in the figure above, if Maria and Ana both completely specialized and traded with one another, their joint output would be

less production efficient than point C not production efficient and point B is production efficient

in the figure above, point A is

3 audio tapes

in the figure above, the marginal cost of the third computer is

$4 million

in the figure above, what is the total consumer surplus from all the milk bought if the price of milk is $3 per gallon

from point A to point D

in the figure above, which movement reflects an increase in demand

highest-valued alternative forgone

opportunity cost means the

price received for a good minus its marginal cost

producer surplus is the _____ summoned over the quantity sold

people cannot satisfy all their wants

scarcity is a situation in which

make choices

scarcity requires that people must

figure A

the above figure shows the market for oranges. which figure shows the effect of a new government program that provides each public school child with an orange to start the day

figure A

the above figures show the market for oranges. which figure shows the effect of changing consumer preferences for more orange juice and less coffee in the morning

40,000 and 500

the demand and supply curves for green tea are given by the following equations Q = 50,000 - 20P Q = 25,000 + 30P where P is measured in dollars and Q is the number of t-shirts sold per year the equlibrium quantity is _____ and the equilibrium price is _____

48, 4

the demand and supply curves for t-shirts in touristtown, USA, are given by the following equations Q = 60 - 3P and Q = 40 + 2P where P is measured in dollars and Q is the number of t-shirts sold per year the equilibrium quantity is _____ and the equilibrium price is ____

give up some of good X in order to obtain more of good Y

the figure above illustrates Mary's production possibilities frontier. if Mary wants to move from point C to point B, she must

receives consumer surplus of 20

the figure above shows Clara's demand for CDs. if the market price for a CD is $20, then Clara

smaller the quantity of the good demanded

the law of demand states that, other things remaining the same, the higher the price of a good, the

opportunity cost

the loss of the highest-valued alternative defines the concept of

sum

the market demand curve for jeans is the ______ of all individual demand curves for jeans

marginal benefit

the maximum amount a person is willing to pay for one more unit of a good

substitutes

the price of a pencil increases and people buy more pens. you infer that pens and pencils are

unitarianism

the principle that states we should strive to achieve the greatest happiness for the greatest number is called

depicts the boundary between those combinations of goods and services that can be produced and those that cannot given resources and the current state of technology

the production possibilities frontier

the amount that producers are planning to sell at a particular price during a given time period

the quantity supplied of a good is

the symmetry principle

the requirement that people in similar situations be treated similarly is

property rights

the rights of an owner to use and exchange property are

microeconomics

the study of the decision of individual units in the economy is known as

5.0

the table above gives the demand schedule for snow peas. the price elasticity of demand between $7 and $8 per bushel is

leftward shift in the supply curve

to say that "supply decreases" for any reason, means there is a

the nation can gain from trade

when a nation has comparative advantage in the production of a particular good

inability of society to satisfy all human wants because of limited resources

when an economist talk of scarcity, the economist is referring to the

an inferior good

when people's income increase, the demand for a good decreases. the good is called

increasing

when the opportunity cost of producing more of a good is increasing, the marginal cost of producing more of the good is


Kaugnay na mga set ng pag-aaral

Cycle 2 Global 10 Study Guide Voight

View Set

Chapter 40: inflation and deflation

View Set

10.3- where is agriculture distributed

View Set

RN Learning System: Nursing Care of Children Practice Quiz 1 & 2

View Set

RN Maternity HESI Review Questions

View Set

Chapter 12: Gender and Sexuality

View Set

new economic theories assignment

View Set