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