macro
On a coordinate graph, what is the Y intercept of the function X = 60 + 3Y?
-20
Which of the following best defines quantity demanded?
The amount, per time period, an individual desires and is able to purchase at the given price.
An economic theory requires all of the following EXCEPT:
a set of value judgments to interpret the empirical evidence.
An economist collects data comparing per-capita expenditures on education across states for the year 2008. The best way to illustrate this data is
a cross-sectional bar-chart graph.
If there is always a three-for-one trade-off between the production of goods X and Y, then the production possibilities boundary for X and Y is
a downward-sloping straight line.
When it is said that variable A depends on variable B, then A is
a function of B.
If an increase in income leads to in an increase in the demand for sushi, then sushi is
a normal good
Given a positively sloped supply curve, a rise in the demand for that commodity causes
an increase in both the equilibrium price and the equilibrium quantity exchanged.
Farmers can raise either goats or ostriches on their land. Which of the following would cause the supply of goats to decrease?
an increase in the price of ostriches
Value judgments
are subjective opinions that cannot be proven.
In order to test a theory, one must
confront the predictions of the theory with evidence.
Specializing in the production of a good or service in which one has a comparative advantage enables a country to do which of the following?
consume a combination of goods that lies outside its own production possibilities frontier
Suppose an individual wheat farmer's income is influenced by the region's average daily temperature. When examining the determinants of individual farmer income, the average daily temperature is a(n) ________ variable.
exogenous
Suppose the cross-elasticity of demand for two goods, domestic beer and imported beer, is positive. If the price of imported beer falls, then quantity demanded will
fall for domestic beer and rise for imported beer.
"The distribution of income should be determined by the government" is an example of a positive economic statement.
false
An increase in quantity supplied is represented by a rightward shift of the supply curve.
false
If the price of peaches, a substitute for plums, increases the demand for plums will decrease.
false
When voluntary exchange takes place, only one party gains from the exchange.
false
If goods X and Y are complements and the price of X falls, all other things being equal, the demand curve for Y will
shift to the right.
Income elasticity measures the change in quantity demanded of some product with respect to changes in
households' income.
When the percentage change in quantity demanded is less than the percentage change in price that brought it about, demand is said to be
inelastic.
In command economies, economic behavior is
largely determined by a central authority.
To say that the demand curve for movies is negatively sloped means that
less quantity will be demanded at higher prices.
f the total expenditure on automobiles increases when the price of automobiles rises, the price elasticity of demand for automobiles is
less than one (demand is inelastic).
The price elasticity of demand for a product tends to be greater the
more close substitutes for it there are.
A theory
must be judged on its ability to explain and predict real-world phenomena
If per capita income increases by 10 percent and household expenditures on leather coats increase by 15 percent, one can conclude that the price elasticity of demand for leather coats is
not determinable from the information given.
Suppose an economist tells you that the U.S. unemployment rate last year was 4.5 percent. This is an example of a(n) ________ statement.
positive
If the legal beer-drinking age is raised by two years, the changes to the equilibrium price and quantity of beer will be such that
price falls, quantity falls.
Consider the law of demand. Other things being equal, the quantity of beer demanded will be greater if the
price of beer is lower.
Excess demand is the same thing as
quantity demanded minus quantity supplied.
The price elasticity of demand measures the responsiveness of
quantity demanded to changes in the price.
For an inferior good, the quantity demanded
rises when income falls.
An insight first fully developed by Adam Smith is that
self-interest, not benevolence, is the foundation of economic order.
Which of the following pairs of goods are likely to be complements for a large group of consumers?
telivisions and DVDs
Suppose that a particular theory predicts that on sunny days consumption will rise and that on cloudy days consumption will fall. If an economist tests this theory and finds that over a six-month period the theory predicts accurately, the economist would likely say
the evidence fails to reject the theory.
"A decrease in the price of digital cameras will decrease the demand for camera film." This statement is an example of a positive economic statement.
true
A normal good is a good for which the demanded decreases as income decreases, holding everything else constant.
true
In a centrally planned economy, the government decides how economic resources will be allocated.
true
The statement "Y is a function of X" means that the
value of Y depends on that of X.
A positive statement is one that states
what is, was, or will be.
The concept of scarcity in economics usually refers to a condition
where people's wants can never be satisfied by the available resources.
