ECON 2301 FINAL
in exhibit 4-1, suppose that a reduction in the price of an important input used to produce the good causes an increase in quantity supplied of 150 units at every price level. Assuming that demand does not change, the new equilibrium price will be:
$2.00
what is the slope of the line shown in exhibit 1-A
-1/4
a supply curve:
Illustrates the relationship between the price and quantity supplied
the overall size of the united states economy is best measured by
The Real Gross Domestic Product (real GDP), which is currently about $16 Trillion
the opportunity cost of an action is:
The value of the best opportunity that must be sacrificed in order to take the action.
an upward-sloping line or curve is used to illustrate
a direct relationship
which of the following would cause a shift in the relationship shown in exhibit 1A-9
a fall in household incomes
a price ceiling that sets the price of a good below market equilibrium will cause:
all of these (an increase in quantity demanded of the good, a shortage of the good, a decrease in quantity supplied of the good)
The "ceteris paribus" clause in the law of demand does not allow which of the following factors to change?
all of these (prices of other goods, expectations, consumer tastes and preferences)
a price floor would be established in cases where the government believed the market equilibrium price would:
be too low
if there is a surplus in the oil market, then the price of oil will
fall.
which of the following is most likely to shift the demand curve for electricity to the left?
consumers becoming more energy conscious
Capital resources include money and other financial assets.
false
assuming that chicken and beef are substitutes, a decrease in the price of beef, other things being equal, will:
decrease the demand for chicken
when economists say the demand for a production has increased, they mean the:
demand curve has shifted to the right
Factors which determine the price of corn would be studied in macroeconomics.
false
which of the following could cause the supply of carrots to decrease?
fertilizer costs increase
When an inverse relationship is graphed, the resulting line or curve is
downward-sloping
the law of demand is illustrated by a demand curve that is:
downward-sloping
an increase in the demand for tattoos will lead to a:
higher price and a larger quantity sold
an increase in the number of producers will:
increase the market supply, because market supply is the sum of all individual supply curves
which of the following will cause a movement upward along a supply curve?
increases in the market price of a good, other things being equal
a market demand curve:
is the sum of the demand curves of all the individuals in a particular market.
Which of the following would an economist classify as capital?
lawyer's personal computer
Which of the following would eliminate scarcity as an economic problem?
none of these
an inverse relationship exists when
one variable increases and the other variable decreases
an entrepreneur is a(n):
organizer who seeks profitable opportunities and is willing to accept risks.
An increase in consumers' incomes will have what effect on the equilibrium in the restaurant meals market?
price will increase, and quantity will increase
If the supply of a good decreased, what would be the effect on the equilibrium price and quantity?
price would increase, and quantity would decrease
a fall in the price of a good causes an increase in its:
quantity demanded
if tofu is a normal good, an increase in income will:
shift the demand curve for tofu to the right
over time, an increase in a nation's stock of physical capital will:
shift the production possibilities curve outward
the development of new technology typically:
shifts the supply curve to the right
assume that the equilibrium price for a good is $5. if the market price is $10, a:
surplus causes the price to decline toward $5
Bill has $10 to spend on a Superman, Batman, or an X-Men T-shirt. Bill buys the Superman T-shirt and the Batman shirt was a close second choice. What is the opportunity cost?
the batman t-shirt
which of the following is a macroeconomics topic?
the economy's annual growth rate
the production possibilities curve is bowed outward from the origin because of:
the law of increasing opportunity costs
a movement along the demand curve for automobiles is caused by a change in:
the price of automobiles
technological innovations will cause:
the production possibilities curve to shift to the right.
if a shortage of a product currently exists in the market,
the quantity demanded exceeds the quantity supplied at the market price
the law of demand indicates that:
the quantity of a good that people will buy is inversely related to the price of the good.
In the context of the production possibilities curve (when a society decides to move from one point on a ppc to another point on a ppc), opportunity cost is measured in:
the quantity of other goods given up
a decrease in supply means that:
the quantity supplied at every price will decrease
if a surplus of a product currently exists in the market,
the quantity supplied exceeds the quantity demanded at the current price
In addition to (1) technological improvement and (2) capital stock growth, an important contributor to long-term economic growth in the United States during the past century and a half has been
the relatively high levels of education, health, skills and experience of its workers
how would a decrease in the price of the feed grains used to feed cattle affect the market for beef
the supply of beef would increase, decreasing beef prices
exhibit 4-1 shows that at a price of $3.00,
there will be excess quantity supplied
All points on the production possibilities curve represent efficient levels of production
true
every economic choice has an opportunity cost
true
a point outside the production possibilities curve represents a combination of goods that is
unattainable
which of the following correctly lists the three fundamental economic questions?
what to produce? how to produce? for whom to produce?
