MECO Exam 1
Increases amount of labor supplied, decreases labor demanded, decrease employment
Above market wage
Modern Economis
Adam Smith
Shift of the demand curve to the left
After widespread reports of "mad cow disease" by consuming beef from Canada, the likely economic effect on the U.S demand curve for Beef from Canada is?
Opportunity Cost
Attending college is a case where " " exceeds monetary cost?
economic agents' behavior is purposeful. goal directed and economic agents match means to ends in their minds
In economics the assumption of rationality is equivalent to assuming that:
Cuba
In which of the following countries will the national government have the greatest influence with respect to the nation's economy?
Luxury and Normal Good
Income elasticity of demand of a particular product is 1.5
Macro economics
Keynes
Marginal Utility
Menger, Walras, William Stanley
None of these
A decrease in the supply and an increase in demand will definitely result in
Quantity Demanded
A demand curve shows the relationship between price and " " on a graph
No effect
A minimum wage set below equilibrium market wage will?
Classical Economics
Favors free trade and free markets
lower costs of production
If a firm faces ________________________, while the prices for the output the firm produces remain unchanged, a firm's profits will increase.
Goods X and Y are complement goods
If an increase in the price of Good X causes a decrease in the demand for Good Y, can conclude that:
Equals 1
If the demand curve is a straight line, total revenue will be at its maximum when the elasticity of demand is
Increases wages
Improvements in the productivity of labor will tend to:
Is the area above the supply curve under the market price and is maximized when there are no restrictions on
Producer surplus
increase price in raw materials
Supply to the left
improvement in tech discovery of a new source of materials
Supply to the right
Lower
The lower the point on a straight line demand curve the " " the price elasticity of demand.
.12/-.2 = .6
The price elasticity of demand for good is -.2 By how much must the price of the good decrease in order for sales to rise 12%
any situation involving the allocation of scarce means to alternative uses.
The subject matter of economics is suited for the study of?
Price Floor
These are enacted when discontented sellers, feeling that prices are too low, appeal to legislators to keep prices from falling.
The plans of buyers to buy match the plans of sellers to sell
Which of the following best describes a situation of market equilibrium?
Collection Costs
Which of the following determines the point of collection of a per unit tax
Both subsidies and taxes have deadweight losses
Which of the following is true?
Increase in labor productivity
Which of the following will not result in a rightward shift of the market supply curve for labor?
An increase in demand for the firm's product
Which of the following will result in a rightward shift of the market demand curve for labor?
Because our unlimited wants exceed our limited resources
Why is there scarcity?
Inferior Good
e < 0
Necessity
e < 1
Normal
e > 0
Luxury
e >1
Private property and rule of law
most important precondition for economic development
