Macro/Micro Exam 2
Juanita goes to the Hardware Emporium to buy a new circular saw. She is willing to pay $120 for a new saw, but buys one on sale for $85. Juanita consumers surplus from the purchase is?
$35
Marco goes to the pet store to buy a dozen koi fish for his new joi pound. he is willing to pays $200 for the dozen fish, but buys them for a total of 140. Marcos consumer surplus from the purchase is
$60
Monique buys a new television for $795. She receives consumer surplus of $355 from the purchase. How much does monique value her television
1150
The table above shows the demand schedules for kona coffee of two individuals (luke and ravi) and the rest of the market. At a price of $4, the quantity demanded in the market would be
150lb
if minimum wage is of 9.50 an hour is mandated, what is the quantity of labor supplied
30,000
if minimum wage of 10.00 an hour is mandated what is the quantity of labor supplied?
350,000
if minimum wage is of 9.50 an hour is mandated what is the quantity of labor demanded
360,000
if a minimum wage of 10.00 an hour is manated, what is the quantity of labor supplied
390,000
If the price of peaces a substitute for plums, increases the demand for plums will decrease.
False
Peanut butter and jelly are complements. if the price of peanut butter increases, the demand for jelly will increase
False
The income effect explains why there is a direct relationship between the price of a product and the quantity of the product demand.
False
The income effect of a price change refers to the change in the quantity demanded of a good that results from a change in the price of a substitute product.
False
The substitution effect explains why there is an inverse relationship between the price of a product and the quantity of the product demanded.
False
if the consumers believe the price of the tablet computer will increase in the future, the will cause the demand fro the tablet computers to decrease now.
False
In cities with rent controls, the actual rent paid can be _____ than the legal maximum. one explanation for this is because there is a _____ of apartments tenants are ___________
Higher;shortage; often qilling to pau rents higher than the law allows
The difference between the ________ for a good and the _______ is called consumer surplus
Highest price a consumer is willing to pay; price the consumer actually pays
which if the folowing statements best describes the concept of consumer surplus?
I was going to pay 200 for new sunglasses that i seen at the oakley store but i ended up paying only 140 for the same sunglasses
The table above shows the demand schedules for kona coffee of two individuals (luke and ravi) and the rest of the market. If the price of kona coffee rises from $6 to $4, the market quantity demanded would
Increase by 61 lb.
A technological advancement would be represented by a movement from
S1 to S2
An income in population results in an increase in demand
True
If consumers believe the price of hybrid vehicles will decrease in the future, this will cause the demand for hybrid vehicles to decrease now
True
If the marginal benefit is less than marginal cost, output is inefficiently high
True
What is the equilibrium hourly wage(W*) and the equilibrium quantity of labor (Q*)
W*=
If a decrease in income leads to in a decrease in the demand for ice cream, then icecream is
a normal good
If an increase in income leads to in an increase in the demand for sushi then sushi is
a normal good
The minimum wage is an example of
a price floor
When the marginal benefit equals the marginal cost of the last unit sold in a competitive market
an aconomically effient level of outout is produced
holding everything else constant, an increase in the price of raisins will result in
an decrease in the quantity of raisins demanded
If, in response to a decrease in the price of coffee, the quantity demanded of coffee increases economists would describe this as
an increase in quantity demand
Last month the Tecumseh corporation supplied 4-- units of three-ring binder at $6 dollars per unit. This month the company supplied the same quantity of binders at $4 per unit. Based on this evidence tecumseh has experience
an increase in supply
_____________ 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.
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
Holding everything else constant , a decrease in the price of GPS systems will result in
an increase in the quantity of GPS systems demanded
if the price of pork rinds falls, the substitution effect due to the price change will cause
an increase in the quantity of pork rinds demanded
Economist _____ that price contrils are desiravle
are relucant to state
A black market is a market where buying and selling take plave
at prices that violate government price regulations
Which of the following is a consequence of minimum wage laws?
employers will be reluctant to offer low-skill woekers jobs with training
A change in which variable will change the market demand for a product
expected future prices
Equilibrium in a competitive market results in the greatest amount of economi9.00; Q*=370,00c surplus from the production of a good service
false
The differnece between consumer surplus and priducer surplus is a market is equal to the dead weight loss
false
deadweight loss refers to a loss in revenue resulting from producers having to redue their selling price to remain competitive
fsldr
The ________ effect of a price change refers to the impact of a change in the price of a good on a consumers purchasing power.
income
An ___________ is represented by a rightward shift if the demand curve while an ___________ is represented by a movement along a given demand curve
increase in demand; increase in quantity demanded.
A supply curve
is a curve that shoes the relationship between the price of a product and the quantity of the product supplied
The additional benefit to a consumer from consuming one more unit of a good or service
is equal to marginal benfit
economic surplus is maximized in a competitive market when
marginal benefit equals marginal cost
in a competitive market equilibrium the ______ equals the ____ of the last unit sold
marginal benefit; marginal cost
A ___________ demand curve for shampoo would by a change in the price of shampoo
movement along the
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
To affect the market outcome, a price floor
must be set above the equlibrium price
in order to be binding a price floor
must lie above the free equilibrium price
taxes are what we pay for a civilzed society this statement was made by
olive rwendell holmes
An increase in the expected future pricr of the product would be represented by a movement from
s2 to s1
Which of the following is a result of government price controls?
some people win and som e prople lose
The substitution of a price change refers to
the change in quantity demanded that results from a change in price making a good more or less expensive relative to other goods that are subsitures
if, in a competitive market, marginal benefit is greater than marginal cost A) the net benefit to consumers from participating in the market is greater than the net benefit to producers
the quantity sold is less than equilibrium quantity
deadweight loss refers to
the reducttuin in economic surplus resulting from not being in competitive equlibrium
ecomist have shown that must burden of a tax is
the same whether the tax is collected from the buyer or the seller
If in the market for bananas the supply curve has shifted to the right, then
the supplies of bananas increased
if in the market for apples the supply has decreased
the supply curve for apples has shifted to the left
each point on a demand curve shoes
the willingness of consumers to purchase a product at different prices
iif the market price is at equilibrium, the deadweught loss is zero
true
The maximum price that a buyer is willing to pay for a good measure his
willingness to pay
Brett buys a new cell phone for $100. He receives consumer surplus of $80 from the purchase. How much does brett value his cell phone?
$180
The table above shows the demand schedules for kona coffee of two individuals (luke and ravi) and the rest of the market. At a price of $6, the quantity demanded in the market would be
89 lb.
If, in response to increase in the price of pineapples the quantity demanded of pineapples decreases, economist would describe this as
A decease in quantity demanded
_______ dictates the lowest wages that firms may oay for labor
A minimum wage law
In cities with rent control people have an incentive to list their apartment on sites such as airbnb at rents ______ the controlled rates, because rent control cause a _____ of apartment
Above;shortage
An inferior good is a good for which the quantity demanded increases as the price decreases, holding everything else constant
False
The market for smartphones has become very competitive. The increase in competition in this market is an example of how the market responds to ... ?
Changes in the consumers tastes.
If the product represented is a normal good, an increase in income would be represented by movement from
D1 to D2
A decrease in the expected future price of the product would be represented by a movement from
D2 to D1
an increase in the price of a complement would be represented by a movement from
D2 to D1
IF THE GOVERNMENT IMPLEMENTS A PRICE CEILING ON INSULIN THIS WILL
DECREASE THE QUANTITY OF INSULIN THE MANUFACTURES WILL BE WILLING TO SUPPLY
_______ us definded as a market outcome in which maginal benefit to consumers of the last unit produced us equal to the marginal cost of the productuion and in which the sum of consumer surplus and profucer surplus is at a maximum
Economic efficiency
Suppose there are two cities that have rent controlled apartment. in one city (Albany) all apartments are subject to rent control; in the other city (half-track) one-half of the apartments are rent controlled which of the following is most likely to be true?
It will be difficult to find a rent controlled apartment in Albany or half-track; rent for the half-track apartments not subject to controls will be higher then they would be without rent controlled
FICA is a paytoll tax imposed on emplyers and workers that is ised to fund social security and medicare. which of the following statements regrading the tax is trueM
MOST ECONOMISTS BELIEVE THE BURDEN OF THE TAX FALLS ALMOST ENTIRELY ON WORKERS
There will be no deadweight loss if the marginal benefit to consumers is equal to the marginal cost of production and the sum of consumer surplus and producer surplus is maximized
Reue
In July market analysts predict that the price of gold will rose in august. What happens in the gold market in July, holding everything else constant
The supple curve shift to the left
A normal good is a good for which the demanded decreases as the income decreases, holding everything else constant
True
if the price of beet jerky rises, the substitution effect due to the price change will cause
a decrease in the quantity of beef jerky demaned
If a demand in income leads to an increase in the demand in macaroni, the macaroni is
a inferior good
If an increase in income leads to an decrease in the demand for salami then salami is
a inferior good
economic efficiency is achieved when there is a market outcome in which the marginal benefit to
consumer surplus plus producer surplus is maximized
The difference between the lowest price a firm would have been willing to accept and the price it actually receives from the sales of a product is called
consumer surplusq
The table above shows the demand schedules for kona coffee of two individuals (luke and ravi) and the rest of the market. If the price of kona coffee rises from $4 to $5, the market quantity demanded would
decrease by 35 lb.
In a competitive market the ______ curve shoes the marginal benefit received by consumers and the _____ curve show the marginal cost to producers
demand ; suply
The phase "Demand has increased" mean that
demand curve has shifted to the right
Government intervention is agicultural markets in the U.S began
during the freat depression
The sumof consumer surplus and producer surplus is equal to
the economic surplus
If you are considering buying either Apple iPhone or a Samsung galaxy, and you choose the Samsung only because the price is lower then you consider ... ?
the iPhone and the Galaxy to be substitutes.
A consumer is willing to purchase a product up tp the point where
the marginal benefit is equal to the price of the product
A tax is imposed on emplyers and workers that used to fund social security and medicare. this tax is sometimes referred to as
the oayrill tax
A demand curve shows the relationship between
the price of a product and the quantity of the product
By drawing a demand curve with a price on the vertical axis and quantity on the horizontal axis economists assume that the most important determinant of the demand for a good is
the price of the good
One would speak of a movement along a supply curve for a good, rather than a change in supply , if
the price of the good changes
suppliers will be willing to supply a product in all of the following situations EXPECT
the price received is less than the additional cost od producting the product