macro final review
any point on the production possibilities curve represnts
all of the above ( full employement and full production, productive efficiency, potential gdp )
which of the following represents a characterisitc of capitalism
all of the above ( private property, competition, freedom of choice)
which of the following contributes to ecnomic growth
an increase in a nations resources over time
one factor that has resulted in an increase in the demand for health care services in the US is
an increase in the number of people over the age of 65
improved technology in the production of steel will result in
an increase in the supply of steel
a point outside the PPC indicates
an unattainable GDP
_____ determine on how the goods should be produced in a capitalist system
businesses
which of the following economic systems can respond faster to a change in consumer tastes/preferences for goods and services
capitalism
athletic footwear and athletic apparel are
complementary goods
Which of the following represents capital as an economic resource:
construction equipment
which nation best reflects a command system
cuba
A decrease in the price of Shell gasoline will:
decrease the demand for Exxon gasoline
an increase in the price of household appliances will
decrease the demand for extended service warranty contacts for household appliances
An increase in the price of salmon will:
decrease the quantity of salmon demanded.
ecnomic theories are based upon
ecnomic facts
the study of ecnomics revolves around the concept of
efficiency
_______ represents individuals who set the strategy, combine the resources, advance innovation and bear financial risk if their firms fail
entreprenuers
in a command system economic resources are primarly
owned by the government
which of the following would be a likely target for a price ceiling
prescription drugs
anti-price gouging laws would be an example of a
price ceiling
Which of the following is a characteristic of a capitalist economy
private property
______ effi8ency refers to producing products at the lowest cost and _________effienceny refers to producing the products that are most wanted by society
productive, allocative
the labor makret represents a
resource market
opportunity cost in an economy exists because
resources are limited
Which of the following statements applies to microeconomics:
sales of household appliances declined in 2008.
crest toothpaste and colgate toothpaste are
substitute goods
which of the following is true about the rationale for trade
the buyer and seller benefits from the trade
an increase in the number of medical clinics will
increase the supply of medical services
the law of demand reflects a ______ relationship between price and quanity demanded
inverse
the economic philsopher who promoted communism was
karl marx
A nation faces tradeoffs because of
limited resources
Society faces economic choices because of:
limited resources
which of the following best decribes the study of ecnomics
limited resources versus unlimited wants
which of the fololoowing economic principles explains the rationale behind decision making
marginal analysis
A _______________ represents the interaction between buyers and sellers and where an exchange of products occurs for a specific price.
market
an ecnomic study of the US automobile industry would reflect
microeconomic analysis
a wage floor is referred to as the
minimum wage
you drive to a retail store that is 20 miles from your home and purchase a shirt on sale for $30. how much did the shirt cost you
more than $30
Which of the following will cause an increase in the demand for health care services:
An increase in buyer income
Which of the following will increase the demand for European travel?
An increase in buyer income
Qd Price Qs 10 $5 40 20 $4 33 28 $3 28 34 $2 24 39 $1 21 A shortage of 10 units will occur at:
$2
Qs Price Qd 200 $23 150 175 $20 175 120 $18 210 90 $14 300 The equilibrium price and quantity in this market will be:
$20 and 175
Qs Price Qd 200 $23 150 175 $20 175 120 $18 210 90 $14 300 A surplus would occur at a price of:
$23
Qd Price Qs 10 $5 40 20 $4 33 28 $3 28 34 $2 24 39 $1 21 the equilibrium price and quanity is
$3 and 28
Qd Price Qs 100 $1 20 80 $2 40 60 $3 60 40 $4 80 20 $5 100 the equilibrium price and quanity is
$3 and 60
Which of the following will increase demand for a firm's products?
A firm that opens new stores in different geographic markets
Which of the following will cause an increase in the supply for apples.
A government subsidy to apple growers
The minimum wage is an example of
A price floor on wage rates for unskilled labor
Which of the following would increase the price of milk?
A price floor placed on milk
Which of the following products would be a likely target for a price ceiling?
All of the above Answers: a. Gasoline b. Prescription drugs c. Rental housing units d.
A decrease in the price of Nike running shoes will
Decrease the demand for Adidas running shoes
An increase in the price of cell phones will:
Decrease the demand for cell phone cases
An increase in supply with demand constant will:
Decrease the equilibrium price and increase the equilibrium quantity
A decrease in demand with supply constant will:
Decrease the equilibrium price and quantity
If medical research validates the health benefits of eating broccoli we can expect an:
Increase in the demand for broccoli
A decrease in resource costs associated with the production of sushi will:
Increase the supply of sushi
Which economic principle indicates that in order to get something you must give something up?
Opportunity cost
Which of the following will result in an increase in the supply of oysters during the present period:
The expectation that the price of oysters will decline in the near future
Which of the following will cause an increase in the demand for the IPhone during the present period
The expectation that the price of the I-Phone will increase in the near future
Which of the following best describes a price floor:
The government establishes a minimum price which is above the market price
Which of the following defines a price ceiling?
The government sets a maximum price which is below the equilibrium price
Macroeconomics approaches the study of economics from the point of view of:
The national economy
ecnomic theories provide useful information to support
all of the above ( business decisions, governemnt policy decisions, proposed legislation )
The economy of Switzerland is best described as:
a capitalist ecnomy
which of the following would decrease the demand for the apple 1-10
a decrease in disposable income
Which of the following would increase the demand for Nike sports apparel?
a decrease in the price of Nike athletic footwear
a mechanism that brings about an interaction between buyers and sellers is nest described as
a market
which of the following is a likely outcome of a price ceiling
a product shortage
which of the following will decrease the supply of farm raised salmon
a tax levied on salmon farms
The economist who advocated the use of a market system in his classic work "The Wealth of Nations " was
adam smith
Which of the following best illustrates macroeconomic analysis:
all of the above :a.the measurement of U.S. GDP b.measuring the unemployment rate for the U.S. economy c.measuring the total amount of income earned by U.S. households
which of the following represents a land based reosurce
all of the above ( a farm, oil,coffee beans )
the governemnt will impose a price ceiling if it believes that the price of the product is too
high
the ______ determines what goods are produced in a capitalist system
household sector
The various types of consumer goods produced in a capitalist system are determined by:
households
______ represent the buyers in the product market in a pure capitalist system
households
The simple circular flow model shows that:
households are on the demand side of the product market and the supply side of the resource market
the circular flow model of pure capitalism indicates that
households supply the resources
The PPC model illustrates the basic principle that:
if an economy is producing at a maximum level of output more consumer goods can only be produced if less capital goods are produced.
A buyer will purchase a second piece of pizza :
if marginal benefit is greater than marginal cost
the expectation that the price of amazon stock will increase in the near future will result in a
increase in demand for amazon stock
an increase in the price of oranges will result in a
increase in quanity supplied
If medical research indicates that fish oil supplements reduce the risk of heart disease we can expect to see a:
increase in the demand for fish oil supplements
a decrease in supply with demand remaining the same will result in a
increase in the equilibrium price and decrease in the equilibrium quanity
an increase in demand with supply remaining constant will result in a
increase in the equilibrium price and quanity
a decrease in the price of gasoline will result in a
increase in the quanity of gasoline demanded
the expectation of a shortage of bottled water due to an impending hurricane would
increase the demand
The expectation of a product shortage for gasoline will:
increase the demand for gasoline
an increase in the price of kellogs corn flakes will
increase the demand for post corn flakes
which of the following will increase the supply of avacados during the present period
the expectation that the price of avocadoes will decrease in the near future
which of the folloeing best describes a price ceiling
the government sets a maximum price which is below the market price
which of the following best describes a price floor
the government sets a minimum price that is above the equilibrium price
Which of the following is a normative economic statement:
the government should extend unemployment benefits if the unemployment rate is higher than 7%
____ refers to the fact that when an individual pursues their ecnomic self interest he/she also promotes the ecnomic well being of the society to which he/she belongs
the invisible hand
prices for goods and services in a capitalist system are determined by
the market
_____ is a market where goods and services are purchased by households and sold by firms
the product market
a nations standard of living depends upon
the production of goods and services
The rationale for a price floor is based upon the fact that the government believes the price is:
too low
a point inside the PPC indicates
underemployement and unemployement
which of the following represents postive ecnomics
what is the current unemployement rate
