micro final
one can say with certainty that equilibrium price will decline when supply
increases and demand decreases
if the supply and demand curves for a product both decrease, then equilibrium
quantity must decline, but equilibrium price may rise, fall, or remain unchanged
nation's production possibilities curve is bowed out from the origin because
resources are not generally equally efficient in producing every good.
an effective price floor on wheat will
result in a surplus of wheat
improvement in production technology will
shift the supply curve to the right
Economics may best be defined as the
social science concerned with how individuals, institutions, and society make optimal choices under conditions of scarcity.
a leftward shift of product supply curve might be caused by
some firms leaving an industry
if the income elasticity of demand for store brand macaroni and cheese is -3, this means that
store brand mac and cheese in an inferior good
increase in the excise tax on cigarettes raises the price of cigarettes by shifting the
supply curve for cigarettes leftward
Opportunity costs exist because
the decision to engage in one activity means forgoing some other activity.
other things equal, which of the following might shift the demand curve for gas to the left
the development of a low cost electric automobile
A firm's supply curve is upsloping because
beyond some point, the production costs of additional units of output will rise
an economist for a bicycle company predicts that, other things equal, a rise in consumer incomes will increase the demand for bicycles. this prediction assumes that
bicycles are normal goods
The price elasticity of demand coefficient measures
buyer responsiveness to price changes.
a 3 percent increase in the price of tea causes a 6% increase in the demand for coffee. the cross elasticity of demand for coffee with respect to the price of tea is
+2.0
Which of the following is a microeconomic statement?
The price of smartphones declined 2.8 percent last year.
suppose the income elasticity of demand for toys is +2.00 this means that
a 10 % increase in income will increase the purchase of toys by 20%
if the demand curve for product b shifts to the right as the price of product a declines, then
a and b are complementary goods
in the past few years, the demand for donuts has greatly increased. this increase in demand might best be explained by
a change in buyer tastes
which of the following would not shift the demand curve for beef
a reduction in the price of cattle feed
bc of the cold weather, the supply of oranges has substantially decreased. this statement indicates the
amount of oranges that will be available at various prices has declined
assuming competitive markets with typical supply and demand curves...
an increase in demand with no change in supply will result in an increase in sales
A perfectly inelastic demand schedule
can be represented by a line parallel to the vertical axis
The demand for a product is inelastic with respect to price if
consumers are largely unresponsive to a per unit price change.
the relationship between quantity supplied and price is --- and the relationship between quantity demanded and price is ---
direct; inverse
a market is in equilibrium
if the amount producers want to sell is equal to the a mount consumers want to buy
You should decide to go to a movie
if the marginal benefit of the movie exceeds its marginal cost.
when the price of oil declines significantly, the price of gasoline also declines. the letter occurs because of an
increase in supply of gasoline
a government subsidy to the produces of a product
increases product supply
if there is a surplus of a product, its price
is above the equilibrium level
The Latin term "ceteris paribus" means
other things equal.
The basic formula for the price elasticity of demand coefficient is
percentage change in quantity demanded/percentage change in price.
"Economics is concerned with how individuals, institutions, and society make optimal choices under conditions of scarcity." This statement is
positive and correct.
the law of demand states that, other things equal
price and quantity demanded are inversely related
if the supply of a product decreases and the demand for the product simultaneously increases then equilibrium
price must rise but equilibrium quantity may ruse, fall, or remain unchanged
The assertion that "there is no free lunch" means that
there are always trade-offs between economic goals.
