econ final review
given that chicken and potatoes are complements in consumption, if the price of chicken increases there would be _________
fewer potatoes sold
what is social security also known as
fica
what is a potential problem in market economies
financial loss
what describes costs that are incurred regardless of a firm's rate of production
fixed cost and overhead
what does the slope of a normal supply curve look like
goes up
what are inferior goods
goods for which the demand rises when income falls
in a communist command economy, who decides how the economic questions will be answered
government
in a socialist economic system. who tends to answer the question of how products will be produced
government and businesses
what's NOT an example of complements
hamburgers and hot dogs
what describes the influence of high price on the behavior of producers
high prices are an incentive for producers to produce more
how is future price related to current demand
if the price is expected to rise, current demand will rise
if management motivates its workers and the workers decide to work harder, supply will ________
increase
if the price of substitute goods decrease, supply will ________
increase
what country currently has a communist command economic system
north korea
when is the fiscal year for the federal government
october 1 to september 31
what is found in all economic systems
participants
communist command economies usually experience ________
poor quality products
the two variables on a demand curve are ________ and __________
price and quantity
what would an item's producer be most likely to do if profits on that item began to drop
produce less of that item
according to the law of supply, which of these would happen to an item as its prices increase
producers would make more of it
what are the types of participants found in an economic system
producers, consumers, government
corporate income taxes are levied by federal and state governments on business __________
profits
what's an example of a variable cost
raw materials
what is not one of the stages of production
short run marginal returns
what is taken out of your paycheck
social security, federal income, medicare
government owns the basic means of production, but there is some private ownership of businesses
socialism
at which stage of production does the concept of "diminishing returns" first become significant
stage II
what's NOT an example of a product that has a relatively inelastic demand
stereo equipment
the amount of a product that would be offered for sale at all possible prices that could prevail in the market
supply
custom taxes that the government levy on imported goods
tariffs
a major problem for individuals and private businesses in a socialist command economy is _______
taxes
what does the way in which an economic system answers the basic economic questions depend upon
the country's government
how does the demand curve respond to an increase in demand
the curve shifts right
what might cause an increase in supply
the introduction of new technology
in a traditional economic system, the question of what to produced is answered by producing ___________
what has always been produced
what is a basic principle of the law of demand
when a good's price is lower, people will buy more of it
what % of medicare taxes is taken out of your paycheck
1.45
how many paychecks will you receive if you get payed once a month
12
when was social security established
1935
how many paychecks will you receive if you get payed twice a month
24
how many paychecks will you receive if you get payed every other week
26
how many paychecks will you receive if you get payed every week
52
what % of social security tax is taken out of everyone's paycheck
6.2
at what age can you draw social security
60
which culture has a traditional economic system
amazon rainforest communities
a particular good can be classified as a normal good if an increase in buyers income causes _______
an increase in demand
if consumer incomes go up, for most products we can expect...
an increase in demand
what is the relationship between income and demand
an increase in income increases demand
what does a shift in the demand curve mean
a change in quantity at every price
if the price of a product decreases and consumers buy more of the product...
a change in quantity demanded has taken place
what is true of both an individual supply curve and a market supply curve
a change in quantity supplied takes place only when there is a change in price
what shows the quantities of products demanded at each price by all consumers in a market
a market demand schedule
labor in a factory is an example of _______
a variable factor of production
at which point in the stages of production does the maximum profitable number of workers become most apparent
beginning of stage III
the total product the business needs to sell in order to cover its total cost where profits are zero
break even
when consumers incomes decline, consumers tend to _______
buy less
what's an example of a country that has a socialist command economy
canada
what action do consumers take that determines what will be produced in a market economy
cast economic votes
the government controls the economic system and does not allow private ownership of the means of production and distribution in a _______ economy
communist command
an increase in the price of wombles causes a decrease in the demand for widgets. the two products are _________
complements
if a resource cost increases, supply will _______
decrease
if consumers expect the future price of a good to increase, supply will _______
decrease
with increased or tighter government regulations, supply will ________
decrease
when the price of something increases, the quantity demanded ______
decreases
when a consumer is able and willing to buy a good or service, he or she creates what
demand
if consumer demand for sugar at 80 cents per pound results in $1,000 in company revenue and a drop in price to 50 cents a pound results in $1,250 in revenue, it may be concluded that...
demand is elastic
what's an example of a fixed cost
depreciation of capital goods
which way does a demand curve slope
downward
when is a firm's rate of hiring likely to be highest
during a phase of increasing marginal returns
the organized way in which a country makes its economic decisions is known as ________
economic system
a business raised the price of a product to increase profits, but found that total revenues went down. the demand for the product is ______
elastic
taxes that are paid on assets that are left to a person's beneficiary
estate tax
what is one of the reasons that a country needs an economic system
it has a limited supply of resources
what is a good that might not be bought when prices rise
luxury
the extra product that is produced as we add one unit of the variable input
marginal product
individuals and businesses own the means of production and distribution with limited government regulation in a ________ economy
market
what type of economic system is used in the united states
market
what is not a federal government mandatory spending
military
because the demand for local telephone service is relatively inelastic...
modest price increase has little or no impact on quantity demanded
what is the most common medium of exchange in modern economic systems
money
if the increase in the price of butter causes a decrease in demand for french pastries...
the two goods are complements
what were the two alternative plans to social security
townsend and share our wealth
lack of economic growth is a major problem for _______ economic systems
traditional
which economic system adopts the fewest new ideas or improvements
traditional
what does social security not give protection for
unemployment compensation
which term refers to the ideal that price causes a proportional change in the quantity demanded
unit elastic