Macroeconomics midterm
Monique buys a new television for $795. She receives consumer surplus of $355 from the purchase. How much does Monique value her television?
$1150
If the market price is $3.00, what is the consumer surplus on the first ice cream cone?
$.50
Paul goes to Dick's sporting goods to buy a new tennis racquet. He is willing to pay $200 for a new racquet, but buys one on sale for $125. Paul's consumer surplus from the purchase is
$75
If an increase in income leads to an increase in the demand for sushi, then sushi is
A Normal good
A supply curve
A curve that shows the relationship between the price of a product and the quantity of the product supplied.
________ means the supply curve has shifted to the right, while ________ refers to a movement along a given supply curve in response to an increase in price.
An increase in supply; an increase in quantity supplied
comparative advantage means the ability to produce a good or service
At a lower opportunity cost than any other producer
product efficiency is achieved when firms produce goods and services
At the lowest cost
refers to the reduction in economic surplus resulting from not being in competitive equilibrium
Deadweight loss
A(n) _____ is represented by a rightward shift of the demand curve while a(n) ______ is represented by a movement alone a given demand curve.
Increase in demand; increase in quantity demanded
perfectly competitive market, there are _____ buyers and ____ sellers.
Many;many
A____ demand curve for shampoo would be caused by a change in the price of shampoo
Movement along the
If a minimum wage of $10.50 is mandated there will be a
Surplus of 60,000 units of labor
oppurtunity cost
The highest-valued alternative that must be given up to engage in an activity.
The unattainable points in a production possibilities frontier are
The points outside the production possibilities frontier
The law of demand implies, holding everything else constant, that as the price of the bagel increases
The quantity of bagels demanded will decrease
Which of the following will not shift the demand curve for a good
an increase in the price of the good
Economists assume that individuals
are rational and respond to incentives
An outward shift of a nation's production possibilities frontier represents
economic growth
______ occurs when economic benefits are distributed fairly.
equity
In economics, the term ________ means "additional" or "extra."
marginal
Economic decline (negative growth) is represented on a production possibilities frontier model by the production possibility frontier
shifting inward
economic growth is represented on a production possibilities frontier model by the production possibilities frontier
shifting outward
allocative efficiency is achieved when firms produce goods and services
that consumers value most
The demand curve shows the relationship between:
the price of a product and the quantity of the product demanded.
If in the market for peaches the supply curve has shifted to the left,
the supply of peaches has decreased.
marginal analysis involves undertaking an activity
until its marginal benefits equal marginal costs.