Econ 1101 final chapters 3 & 19
Refer to the table. If demand is represented by columns (3) and (2) and supply is represented by columns (3) and (5), equilibrium price and quantity will be:
$8 and 60 units
Macroeconomics is studied from all these perspectives except
economic budgets
Net exports are
exports less imports
Macroeconomics focuses on the following policy(s) within the government
fiscal and monetary policy
which of the following statements is correct
if supply increases and demand decreases equilibrium price will fall
A market is in equilibrium
if the amount producers want to sell is equal to the amount consumers want to buy
the demand curve shows the relationship between
price and quantity demanded
the supply curve shows the relationship between
price and quantity supplied
An effective ceiling price will
result in a product shortage
in presenting the idea of a demand curve economists presume that the most important variable in determining the quantity demanded is
the price of the product itself
Which of the following is not an economic investment
the purchase of 100 shares of at&t by a retired business executive
which two variables, such as in the "law of supply" have a positive correlation
they tend to move in the same direction
the demand for a good or service is determined by
those who buy the good or service
which of the following is most likely to be an inferior good
used clothing
a market
is an institution that brings buyers and sellers together
Refer to the above diagram. A shortage of 160 units would be encountered if the price was
$0.50
Refer to the diagram. The equilibrium price and quantity in this market will be:
$1.00 and 200
Refer to the above diagram. A surplus of 160 units would be encountered if the price was:
$1.60
Answer the question on the basics of the following data. All figures are in billions of dollars: The gross domestic product for the above economy is:
$110
Macroeconomics consider the following the most important goals, except
Balanced Budgets
The rationing function of prices refers to the:
Capacity of a competitive market to equalize quantity demand and quantity supplied
the relationship between quantity supplied and price is_______ and the relationship between quantity demand and price is________
Direct, inverse
Refer to the above diagram. A decrease in quantity demanded is depicted by a:
Move from point y to point x
if the current prices of all goods and services rose, but the quantity produced remained unchanged what would happen to nominal and real GDP
Nominal GDP would rise but real GDP would be unchnaged
The law of demand states that, other things equal
Price and quantity demanded are inversely related
the law of supply indicates that, other things equal:
Producers will offer more of a product at high prices than at low prices
Assume a drought in the great plains reduces the supply of wheat. Noting that wheat is a basic ingredient in bread and potatoes are a consumer substitute for bread, we would expect the price of wheat to
Rise the supply of bread to decrease and the demand for potatoes to increase
Refer to the above diagram. a decrease in demand is depicted by a
Shift from D2 to D1
Suppose that corn prices rise significantly if farmers expect the price of corn to continue rising relative to other crops then we would expect:
The supply to increase as farmers plant more corn
which of the following will not cause the demand for product k to change
a change in the price of k
If two goods are compliments
a decrease in the price of one will increase the demand for the other
A nation's gross domestic product (GDP)
can be found by summing up C + I + G + Xn
Digital cameras and memory cards are
complimentary goods
a shift to the right in the demand curve for product A can be most reasonably explained by
consumer preferences have changed in favor of A so that they now want to buy more at each possible price point
Suppose an excise tax is imposed on product x we can expect this tax to
decrease the demand for complimentary good y and increase demand for substitute product z
Michael rents 5 movies per month when the price is $3 per rental and 7 movies per month when the price is $2 per rental. Michael's action demonstrates the law of
demand
If Z is an inferior good, an increase in money income will shift the:
demand curve for Z to the left
Price floors and ceiling prices
interfere with the rationing function of prices
other things equal, an excise tax on a product will
increase its price
a demand curve
indicates the quantity demanded at each price in a series of prices
an increase in the quantity supplied is depicted by a
move from point y to point x
the term "ceteris paribus" means
other things equal
the location of the product supply curve depends on the
production technology
Camille's creations and julia's jewels both sell beads in a competitive market. If at the market price of $5, both are running out of beads to sell (they can't keep up with the quantity demanded at that price) then we would expect both camille and julia to
raise their price and increase their quantity supplied
a decrease in supply is depicted by a
shift from S2 to S1
a leftward shift of a product supply curve might be caused by
some firms leaving an industry
the forces that make market economies work are
supply and demand
each of the following is a determinant (shifter) of demand except
technology
which of the following would most likely increase the current demand for gasoline
the expectation by consumers that gasoline prices will be higher in the future
Graphically the demand market curve is
the horizontal sum of individual curves