Microeconomics chapter 1 study material part 7

42. Refer to the graph below. What is the value of the area contained in rectangle A?

$250,000 I believe. The area of the rectangle is equal to $2.00/bottle × 125,000 bottles = $250,000, which is $250,000 in total revenue.

41. Refer to the graph below. What is the value of the shaded area shown on the graph?

$6,250 The area of the triangle is ½ × (150,000 - 125,000) × ($2.00 - $1.50) = $6,250.

Which of the following graphs shown below is the graph of a single variable?

All of the above. The bar chart, pie chart, and time series graph are all graphs of a single variable.

Which of the following covers the study of topics such as inflation and unemployment?

Macroeconomics. Macroeconomics is the study of the economy as a whole, including topics such as inflation, unemployment, and economic growth.

Fill in the blank: ____________ is the study of how households and businesses make choices, how they interact in markets, and how the government influences their choices.

Microeconomics. This is the definition of microeconomics.

What type of assessment is one in which a person's values and political views form part of that assessment?

Normative assessment. would concern what a person believed "ought to be," not "what is." The assessment would be influenced by the person's values and political beliefs.

Which of the following involves an estimation of the benefits and costs of a particular action?

Positive analysis. uses economic models to estimate the benefit and cost of a particular action. Positive questions are questions that can be tested.

Refer to the graph below. What can be said about the value of the slope of this curve?

The value of the slope is greater between points g and h than between points i and j. As you move upward along the curve, the value of the slope decreases. The slope between g and h is greater than the slope between i and j.

Refer to the graph below. Which of the following explains why the line shifts to the right?

There was a change in a third variable other than the price or quantity of pizza demanded. Shifting a line involves taking into account more than two variables on a graph. In this case, something other than the price of pizza has changed, causing the demand curve to shift to the right. As a result, the quantity of pizza demanded is greater for each of the prices shown.

Let V1 equal the value of a variable in period 1, and V2 equal the value of the same variable in period 2. What is the rate of growth between periods 1 and 2?

[(V2 - V1)/V1]×100 This is the formula for computing a percentage change or a growth rate.

Refer to the graph below. What is the best descriptor of the relationship between disposable personal income and consumption spending?

a positive relationship. An upward sloping line shows that the relationship between two variables is positive, that is, the variables change in the same direction.

What is the name given to the practical application of an invention?

an innovation. An innovation is the application of an invention.

What is the name given to the development of a new good or a new process for making a good?

an invention. An invention is the development of a new good or a new process for making a good

Refer to the graph below. How many variables are involved in explaining the move from point A to point C on this graph?

one. The movement from A to C is explained by one and only one thing: a change in price. The (quantity demanded, price) combination at A is different from that at C, but the movement from A to C is explained by a change in only one variable: price.

What is the stock of computers, factory buildings, and machine tools used to produce goods better known as?

physical capital. In economics, capital refers to physical capital, which includes manufactured goods that are used to produce other goods and services

Human capital is

the accumulated training and skills that workers possess. This is the definition of human capital. For example, college-educated workers generally have more skills and are more productive than workers who have only high school degrees.

Which of the following is a graph of the relationship between two variables?

the graph on the left. The graph on the left shows the relationship between two variables: price and quantity demanded.

Suppose that there are three variables involved in the graph below: (1) quantity, (2) price, and (3) a third variable. Which of those variables causes the move from point C to point D in the graph?

the third variable. A shift of the demand curve is caused by a change in something other than price, such as a change in income. For each price, the quantity of pizza demanded is less than it was before.

Refer to the graph below. What is the name of the area contained in rectangle A?

total revenue. Total revenue equals price × quantity, which is the area of the rectangle (Base × Height).

Fill in the blanks. The slope of a straight line equals the change in value on the ____________ axis ____________ by the change in the value on the other axis between any two points on the line.

vertical; divided. The slope of a line equals the change in the value on the vertical axis divided by the change in the value on the horizontal axis. The slope is sometimes referred to as "the rise over the run".

Refer to the graph below. Which of the formulas below must you apply to compute the shaded area shown on the graph?

½ × Base × Height. You are computing the area of a triangle, which is ½ × Base × Height.

Refer to the graph below. What is the value of the slope of this line?

−1/5 Along this line, the value of the slope is the same between any two points. As an example, as we move from B (55, 14) to C (60, 13), the value of rise is (13 − 14) = −1 and the value of the run is (55 − 60) = −5. Therefore, the value of the slope is −1/5.