Econ midterm quizlet
A decrease in the demand for eggs due to changes in consumer tastes, accompanied by a decrease in the supply of eggs as a result of an outbreak of Avian flu, will result in?
A decrease in the equilibrium quantity of eggs; the equilibrium price may increase or decrease.
Which of the following would shift the supply curve for energy drinks to the left?
A decrease in the number of firms that produce energy drinks.
If an increase in income leads to an increase in the demand for sushi, then sushi is?
A normal good.
Which of the following would increase gross private domestic investment in an economy?
An increase in the level of Apple's inventory.
Which of the following would cause an increase in the supply of cheese?
An increase in the number of firms that produce cheese.
Which of the following will not shift the demand curve for a good?
An increase in the price of the good.
Macroeconomics, as opposed to microeconomics, includes the study of what determines the?
Average price levels of goods and services in the economy.
What is the largest component of spending in the United States?
Consumption spending.
Let D = demand, S = supply, P = equilibrium price, Q = equilibrium quantity. What happens in the market for sushi if the Surgeon General announces that a majority of the raw fish that is imported to make sushi contains high levels of toxic mercury?
D decreases, S no change, P and Q decrease.
Gross domestic product in the economy is measured by the?
Dollar value of all final goods and services produced in the economy.
In the circular flow model, the value of total production for an economy ________ the value of total expenditures on final goods and services?
Equals.
A country in which a significant fraction of domestic production takes place in foreign-owned factories and facilities is most likely a country where?
GDP is much larger than GNP.
Suppose that when the price of hamburgers increases, the Ruiz family increases their purchases of hot dogs. To the Ruiz family
Hamburgers and hot dogs are substitutes.
The ________ effect of a price change refers to the impact of a change in the price of a good on a consumer's purchasing power.
Income.
A sharp increase in the number of medical errors increases the number of lawyers hired to determine medical malpractice settlements. This will?
Increase GDP and decrease well-being in the economy.
Suppose there is some unemployment in the economy and society decides that it wants more of one good. Which of the following statements is true?
It can increase output without giving up another good by employing more resources.
If GDP calculations included measurements of pollution and environmental damage, GDP values would most likely be?
Less than their values without these measurements.
The income effect of a price change results in a?
Movement along the demand curve due to a change in purchasing power brought about by the price change.
The purchase by a foreign government of an airplane produced in the United States is included in U.S?
Net exports.
Which of the following headlines would be more closely related to what macroeconomists study than what microeconomists study?
Real GDP grows by 2.3% in the second quarter.
________ exists because unlimited wants exceed the limited resources available to fulfill those 12) wants.
Scarcity
Buyers scrambled to secure stocks of Australian wool following a forecast of an 11 percent decline in wool production. What happens in the Australian wool market as a result of this announcement?
The demand curve for Australian wool shifts to the right in anticipation of higher prices in the future.
If the price of propane-fueled gas grills was to decrease, then?
The demand for propane would increase.
When Toyota introduced its 2010 Prius, it announced that the average retail price of the 2010 model would be lower than the average retail price was for the equivalent 2009 model. Which of the following would explain the price differential?
The demand for the Prius had decreased, and the supply of the Prius had increased.
Several studies have shown promising links between green tea consumption and cancer prevention. How does this affect the market for green tea?
The green tea demand curve shifts to the right because of a change in tastes in favor of green tea.
Assume that there is a surplus in the market for hybrid automobiles. Which of the following statements correctly describes this situation?
The price of hybrid automobiles will fall in response to the surplus; as the price falls the quantity demanded will increase and the quantity supplied will decrease.
If prices in the economy rise, then?
The purchasing power of a dollar declines.
Home Depot sells new and used doors to contractors who build new homes. Home Depot also sells new and used doors to homeowners. Which of the following would be counted in GDP?
The sale of a new door to homeowner.
If in the market for apples the supply has decreased, then?
The supply curve for apples has shifted to the left.
Individuals who have never been the best at doing anything
can still have a comparative advantage in producing some product.
Households
purchase final goods and services in the product market.
All of the following are considered intellectual property except
shares of stock.
Which of the following are represented by the same flow in the circular flow model?
the flow of costs and the flow of revenue
The unattainable points in a production possibilities frontier are?
the points outside the production possibilities frontier.
The resource income earned by those who supply labor services is called?
wages and salaries.
