Economics 1
Which of the following would most likely exhibit the highest price elasticity of demand?
Crest toothpaste
In the circular flow model businesses demand products and supply resources.
False
Which of the following is a microeconomic statement?
The price of personal computers declined last year
A political candidate promises voters more funding for AIDS research and child care, and assures them they will not have to sacrifice any other goods or services to obtain the additional programs.
This may be possible if the economy has unemployed resources
An example of a public good would be a local free fireworks display.
True
Price floors benefit producers.
True
Suppose that short skirts that were fashionable in the 1990s become unfashionable in the late 2000's. If other factors were held constant, then there would be
a leftward shift in the demand curve
Unemployment and/or productive inefficiencies:
are both illustrated by a point inside the production possibilities curve
Which of these has the most elastic demand?
chuck steak
When demand falls and supply remains the same, equilibrium price__________ and equilibirum quantity__________
falls, falls
If there is a freeze in California, the price of orange in California will
increase
If Marginal Utility is zero then total utility is
maximum
"The value of the next best alternative" defines
opprtunity cost
Price ceilings result in
shortage
The most important determinant of the degree of elasticity of demand is
the availability of substitutes.