ECO MIDTERM

A quota is A. A limit placed on the quantity of goods that can be imported into a country B. A tax imposed by the government on Goods imported into a country C. A subsidy granted to importers of a vital input D. A health and safety restriction imposed on an imported product

A

In New York City about 1 million apartments are subject to rent control by the government. Rent control A. Puts legal limits on the rent that landlords can charge for an apartment B. Only applies to those apartments which are owned and rented out by the legal government C. Is a government policy which limits Apartments rental to those people whose incomes are less than $50,000 per year D. Is a price for which sets a minimum rent for apartments

A

Select the phrase that correctly completes the following statement. An increase in input prices cause a decrease in supply of baseballs. As a result____________. A. The price of baseballs increase in the quantity demanded of baseballs decreased B. The equilibrium quantity of baseballs increased C. The price of baseballs increase. The higher price cause the supply of baseballs to increase D. The price of baseballs increase in the demand for baseball's decreased

A

Suppliers will be willing to supply a product in all of the following situations except when A. The price received is less than the additional cost of producing the product B. The price received is greater than the additional cost of producing the product C. The price received is at least equal to the additional cost of producing the product D. The price received is equal to the additional cost of producing the product

A

The term market in economics refers to A. A place where Money Changes hands B. A group of buyers and sellers of a product and Arrangement by which they come together to trade C. In organization which sells goods and services D. A legal institution where exchange can take place

A group of buyers and sellers of a product in the arrangement by which they come together to trade

In 2004 hurricanes damaged a large portion of Florida's orange crop as a result of this many Orange Grove orders were not able to supply fruit to the market if following the hurricane the price for made at its pre hurricane level what would we expect to see

A shortage of oranges

What is the difference between an increase in Supply and an increase in quantity supplied A. An increase in Supply means that the supply curve has shifted to the right while an increase in quantity supplied refers to a movement along a given supply curve in response to an increase in price B. An increase in Supply means the supply curve has shifted to the right while an increase in quantity supplied means at any given price supply has increased C. There is no difference between the two terms they both refer to a movement along a given supply curve D. There is no difference between the two terms they both refer to a shift to the supply curve

A. An increase in Supply means the supply curve has shifted to the right while an increase in quantity supplied refers to a movement along a given supply curve in response to an increase in price

Which of the following will not shift the demand curve for a good? A. An increase in the price of a good B. an increase in population C. An increase in consumer incomes D. a decrease in the price of a substitute good

A. An increase in the price of a good

Which of the following is the correct way to describe equilibrium in a market A. At equilibrium quantity demanded equals quantity supplied B. At equilibrium Market forces no longer apply C. At equilibrium demand equals Supply D. At equilibrium scarcity is eliminated

A. At equilibrium quantity demanded equals quantity supplied

Microeconomics is the study of A. How households and firms make choices B. The global economy C. The economy as a whole D. Topics such as unemployment inflation and economic growth

A. How households and firms make choices

Economic models do all of the following except A. Portray reality in all its minute details B. Answer economic questions C. Simplify some aspect of economic life D. Make economic ideas explicit in concrete for more used by decision-makers

A. Portray reality and all its minute details

Let D =demand S= Supply P=equilibrium price and Q=equilibrium quantity. What happens in the market for electric vehicles if the government offers incentives for manufacturers to produce more electric vehicles A. S increases, D no change, P decreases, Q increases B. D no change, S increases, P decreases, Q decreases C. D and S increases, P and Q decrease D. The increases, S no change, p and Q increases

A. S increases, D no change, P decreases, Q increases

A decrease in the price of GPS systems will result in A. Smaller quantity of GPS systems supplied B. A decrease in the demand for GPS systems C. An increase in the supply of GPS systems D. A larger quantity of GPS system Supplied

A. Smaller quantity of GPS systems supplied

The law of demand implies, holding everything else constant, that as the price of bagels increases A. The quantity of bagels demanded will decrease B. The demand for bagels will decrease C. The quantity of bagels demanded will increase D. The demand for bagels will increase

A. The quantity of bagels demanded will increase

Marginal analysis involves undertaking an activity A. Until it's marginal benefits equal marginal costs B. Only when it's marginal benefits are positive C. Only if the marginal costs are greater than the marginal benefits D. Untill tell it's marginal costs start declining

A. Untill its marginal benefits equal marginal costs

Which of the following would shift the supply curve for MP3 players to the left: A. An increase in productivity of the workers who produce MP3 players B. An increase in the price of an input used to promote MP3 players C. An increase in the number of firms that produce MP3 players D. A decrease in consumer tastes for MP3 players

An increase in the price of an input used to produce MP3 players

If quantity demanded for a product exceeds the quantity supplied, the market price will rise until A. Quantity demanded equals quantity supplied. The equilibrium price will then be greater than the market price B. Quantity demanded equals quantity supplied. The market price will then equal the equilibrium price C. Only wealthy consumers will be able to afford the product D. The quantity demanded equals the quantity supplied. The product will then no longer be scarce

B

To affect the market outcome a price ceiling A. Must be set below the black market price B. Must be set below the equilibrium price C. Must be set below the legal price D. Must be set below the price floor

B

Let D equal demand, s equal Supply, P equal equilibrium price, and Q equal quantity. What happens in the market for walnuts if the Center for Disease Control and prevention announces that consuming a half a cup of walnuts each week helps lower levels of bad cholesterol A. D no change, S increases, P decreases, Q decreases B. D increases, S no change, P and Q increase C. S increases, D no change, P decreases, Q increases D. D and S increase, P and Q increases

B. D increases, S no change, P and Q increases

Productive efficiency is achieved when A. Firms add a low profit margin to the goods and services they produce B. Firms produce goods and services at the lowest cost C. Firms Produce the goods and services that consumers value most D. There are no shortages or surpluses in the market

B. Firms produce goods and services at the lowest cost

The demand by all consumers of a given good or service is the _________for the goods and services A. Law of demand B. Market demand C. Schedule demand D. Quantity demanded

B. Market demand

Who receives the most of what is produced in a market economy A. Those who are willing and able to buy them B. People who earn the highest incomes C. Everyone receives an equal amount D. Text makers in other politically favored groups

B. People who earn the highest incomes

How does the increasing use of digital cameras affect the market for traditional camera film A. The quantity of traditional camera film demanded increases B. The demand curve for traditional camera film shift to the left C. The demand curve for traditional camera film shifts to the right D. The quantity of traditional camera film demanded decreases

B. The demand curve for traditional camera film shifts to the left

If the price of smartphones was to increase then A. The quantity of smartphone apps demanded would decrease B. The demand for smartphone apps would decrease C. The demand for smartphone apps would increase D. The quantity of smartphone apps demanded would increase

B. The demand for smartphone apps would decrease

The principle of opportunity cost is that A. Taking advantage of investment opportunities involves cost B. The economic cost of using a factor of production is the alternative use of the factor that is given up C. The cost of production varies depending on the opportunity for technological application D. In a market economy taking advantage of profitable opportunities involves some money cost

B. The economic cost of using a factor of production is the alternative use of the factor that is given up

Which of the following is evidence of a surplus of bananas A. Firms raise the price of bananas B. The price of bananas is lowered in order to increase sales C. The equilibrium price of bananas Rises due to an increase in demand D. The quantity of bananas demanded is greater than the quantity supplied

B. The price of bananas is lowered in order to increase sales

A change in all of the following variables will change the market demand for a product except A. population and demographics B. the price of the product C. tastes D. income

B. The price of the product

If in the market for peaches the supply curve has shifted to the left A. The supply of peaches has increased B. The supply of peaches has decreased C. The the quantity of peaches supplied has decreased D. The quantity of peaches supplied has increased

B. The supply of peaches has decreased

Assume there's a shortage in the market for digital music players which of the following statements correctly describes the situation? A. The price of digital music players will rise in response to the shortage, as the price Rises the quantity demanded will increase in the quantity supplied will decrease B. The demand for digital music players is greater than the supply of digital music players C. Some consumers will be unable to obtain digital music players at the market price and will have an incentive to offer to buy the product at a higher price D. The shortage will cause a decrease in the equilibrium price of digital music players

C

At market equilibrium A. Surpluses are greater than shortages B. Shortages are greater than surpluses C. Quantity demanded equals quantity supplied D. Demand equal Supply

C

Paul goes to sportsmart to buy a new tennis racket, he is willing to pay $200 for a new racket, but buys one on sale for 125. Paul's consumer surplus for the purchase is A. 125 B. 325 C. 75 D. 200

C

The difference between the highest price in consumer is willing to pay for a good and the price the consumer actually pays is called A. The substitution effect B. Producer Surplus C. consumer surplus D. The income effect

C

What is the difference between an increase in demand and an increase in quantity demanded A. There's a difference between the two terms. They both refer to a movement downward along a given demand curve B. An increase in demand is represented by a movement along a given demand curve, while an increase in quantity demanded is represented buy a rightward shift of the demand curve C. An increase in demand is represented by a rightward shift of the demand curve while an increase in quantity demanded is represented by a movement along a given demand curve D. There is no difference between the two terms they both refer to a shift of the demand curve

C. An increase in demand is represented by a rightward shift of the demand curve while an increase in quantity demand is represented by a movement along the given demand curve

The production possibility Frontier Model shows that A. Market economy is more efficient in producing goods and services then is a centrally planned economy B. Economic growth can only be achieved by free market economies C. If all resources are fully and efficiently utilize more of one good can be produced only by producing less of another good D. if consumers decide to buy more of a product its price will increase

C. If all resources are fully and efficiently utilized, more of one good can be produced only by producing less of another

Let D equal demand, s equal Supply, Q equal equilibrium quantity, P equal equilibrium price. What happens in the market for tropical hardwood trees if the government restrict the amount of forest lands that can be logged? A. D and S decrease P and Q increase B. D no change S decreases P increases Q increases C. S decreases D no change P increases Q decreases D. D decreases S no change p and Q decreases

C. S decreases D no change P increases Q decreases

The supply curve for watches A. Is downward-sloping B. Shows the relationship between the price of watches in the quantity of watches supplied C. shows the relationship between the price of watches and the quantity of watched supplied D. Shows the supply of watches consumers are willing and able to buy at any given price

C. Shows the relationship between the price of watches and the quantity of watches supplied

Exports are domestically produced goods and services A. Which are used to produce other goods and services B. Sold at home C. Sold to other countries D. Sold to the government

C. Sold to other countries

Which of the following is a macroeconomics question A. What determines the wage of Auto Workers B. what determines this production of DVDs C. what determines the inflation rate D. what factors determine the price of carrots

C. What determines the inflation rate

Which of the following is a microeconomic question A. What will the level of economic growth be in the entire country B. what determines the average price level and inflation C. What factors determine the price of carrots D. how much will be saved and how much will be produced in the entire economy

C. What determines the price of carrots

Which of the following is a normative economic statement: A. the state of Texas is considering increasing funds for light rail development to promote the use of public transportation B. with Rising mortgage rates and rising unemployment rates the number of unsold homes has increased C. pharmaceutical manufacturers should not be allowed to patent their products so prescription drugs would be more affordable D. Rising Global demand for coal has led to increase in price of coal

C. pharmaceutical manufacturer should not be allowed to Pat and their products of prescription drugs would be more affordable

Rent control is an example of A. A price floor B. A black market C. A subsidy for low-skilled workers D. A price ceiling

D

The revenue reached from the sale of __________ of a product is a marginal benefit to The Firm. A. The total number of units B. No tariffs C. Only profitable units D. An additional unit

D. An Additional unit

Economist assume that individuals A. Behave in unpredictable ways B. Prefer to live in a society that values fairness above all else C. Will never take action to help others D. Are rational and respond to incentives

D. Are rational and respond to incentives

In economics the term Equity means A. Everyone has an equal standard of living B. Only elected officials have high standards of living C. The hardest working individuals consumes all they want D. Economic benefits are distributed fairly

D. Economic benefits are distributed fairly

If the Apple watch and Samsung Gear S2 are considered substitutes then other things are equal, an increase in the price of the Apple watch will A. Increase the quantity demanded for the gear S2 B. Decrease the demand for the Apple watch C. Increase the quantity demanded for the Apple watch D. Increase the demand for the gear S2

D. Increase the demand for gear S2

All the following are part of an economic model except A. Data B. Hypothesis C. Assumptions D. Opinions

D. Opinions

At a product's equilibrium price the A. The quantity of the product demanded is greater than the quantity of the product supplied B. The products demand curve is the same as the product supply curve C. The quantity of the product demanded is less than the quantity of the product supplied D. The products demand curve crosses the producers supply curve

D. Products demand curve crosses the product supply curve

Which of the following statements is true about profit: A. Profit is calculated by multiplying price and quantity sold B. Prophet refers to the revenue received from the sale of a quantity of good C. the term accounting profit and economic profit can be used interchangeably D. profit is a difference between revenue and cost

D. Profit is the difference between revenue and cost

Which of the following is a positive economic statement: A. Foreign workers should not be allowed to work for lower wages than the citizens of a country B. the government should mandate electric automobiles C. People should not buy SUVs D. scarcity necessitates that people make trade-offs

D. Scarcity necessitates that people make trade-offs

Which of the following is evidence of a shortage of walnuts A. The price of cashews is lowered in order to make up for the Walnut shortage B. Firms lower the price of walnuts C. The equilibrium price of walnuts fall due to a decrease in demand D. The quantity of walnuts demanded is greater than the quantity supplied

D. The quantity of walnuts demanded is greater than the quantity supplied

In October 2005 the US fish and wildlife service banned the importation of Beluga caviar, the most prized of caviar's, from the Caspian Sea. What happened in the market for caviar in the United States A. The demand curve shifted to the left B. The demand curve shifted to the right C. The supply curve shifted to the right D. The supply curve shifted to the left

D. The supply curve shifted to the left

In economics tangible merchandise is referred to as

Goods

In economics the accumulated skills and training that workers have is known as

Human capital

A tariff is a tax imposed by government on

Imports

What does the term marginal mean in economics

In addition or extra

A supply schedule A. Is a table that shows the relationship between the price of a product and the quantity of the product that producers and consumers are willing to exchange B. Is a table that shows the relationship between the price of a product in the quantity of the product supplied C. Is a curve that shows the relationship between the price of a product in the quantity of the product supplied D. Is the relationship between the supply of a product and the cost of producing the product

Is a table that Shows the relationship between the price of a product in the quantity of the product supplied

The highest valued alternative that must be given up to engage in an activity is the definition of

Opportunity cost

In a modern mixed economy, who decides what goods and services will be produced A. Only the producers B. Only the government C. The government, consumers and producers D. The consumers and producers

Producers consumers and government

In economics activities done for other such as providing house cleaning are dental work or referred to as

Services

When the price of a good Rises consumers buy a smaller quantity because of the effect _____and the ______ effect

Substitution, income

By definition, economics is the study of. A. Supply and demand B. How to makw money in the economy C. The choices people make to attain their goals, given their scarce resources D. How to make Money in market economy

The choices people make to attain their goals given their scarce resources

Macroeconomics is the study of A. How firms make choices B. How households and firms make choices C. How households make choices D. The economy as a whole

The economy as a whole

The three fundamental questions at any economy must address A. How much will be saved, what will be produced, how can these goods and services be fairly distributed B. What goods and services to produce, how will these goods and services be produced, who will receive them C. What will be the price of goods and services, how will these goods and services be produced, and who will receive them D. Who gets jobs what wages do workers earn in who owns what property

What goods and services to produce, how will these goods and services be produced, and who receives them