Econ
what does the idea of a two sector circular flow of income depend on
what is made being sold to people in the same economic system as those who are paid to make it
the ''equilibrium price'' in a competitive market
will tend to be reached, although not necessarily immediately because of the competitive forces set up whenever price is at any other level other than equilibrium
the bank of england was found in
1694
if the tax code exempts the first $20,000 of income from taxation a $50,000 has an average tax rate of_____ percent and a marginal tax rate of_____percent
15,25
A peck is 1/4 of a bushel. if the price elasticity of demand for oats is -0.6 when oats is measured in bushels, then when oats is measured in pecks, the price elasticity of demand for oats will be
DNE
which of the following would not cause a shift in an individuals demand curve for commodity Z
a change in the price of Z
the "invisible hand" argument is that
a contraction in the quantity demanded of the other good
If two goods are complements, a decrease in the price of one of them will result in
a shift to the right in the other goods demand curve
along a society's production possibilities frontier
available resources are being used efficiently
if demand for a good is perfectly elastic then an increase in supply of the good will cause
bot the equilibrium quantity and sellers total revenue to rise
when private costs differ from social costs the resultant problem is called
externalities
if the price elasticity of supply is much greater than the (absolute value of) price elasticity of demand, a tax imposed on sellers will
cause the buyers to incur a greater burden of the tax than sellers
for an economic model to be 'well recieved' it must
generate hypotheses that have survived many attempts to falsify them
under perfect competition, rivalry is
impersonal
if peas and beans are substitutes normally an increase in the price o peas will
increase the price of beans and the quantity sold
the tax principle that takes the most amount of tax from a richer person
involves equal marginal sacrifice
the basic economic problem is essentially one of deciding hot to make the best use of
limited resources to satisfy virtually unlimited wants
if average cost rises as a firm increases its output level
marginal cost is greater than average cost
a monopolist will expand its output when
marginal revenue exceeds marginal cost
which of the following is not a potential principle for running an economy
national product or output
the firms cost functions are determined by
none of the above (the price of its product, its assets, the age of the firm, the level of demand for the product)
the type of economics which contains statements about what ought to be is called
normative
the market demand curve for a good in general shifts to right when
population rises
Hypotheses
propositions about behavior in the knowable world
which of the following is not one of adam smith's 'canon's of taxation'
smoothness so that the balls fired by the canons are perfect spheres
an externality can best be described as
the incidental production of a benefit or cost for which compensation cannot be extracted in the market
if a sales tax of $t per unit is imposed on shirts
the net revenue producers receive from each shirt will decrease
if sales tax is imposed on automobiles
the supply curve will shift upward and the market price will increase
We say capital formation occurs in an economy whenever
the supply of machinery, factories, and equipment increases
