Chapter 3 and 4 Macro
In exhibit, a decrease in price from $10 to $4 leads to:
A decrease in supply
Which of the following will increase the supply of vanilla ice cream
A decrease in the price of milk
The movement in U.S population from the farms to urban areas were caused primarily by
A sharp increases in farm productivity
A public good is one that is supplied to
All people, regardless of whether they pay or not
The difference between normal and inferior goods is that
An increase in income will shift the demand curve for a normal good rightward and the demand curve for an inferior good leftward
Which of the following causes the supply of leather jackets to decrease
An increase in the price of leather
Which of the following is an example of a durable good
Binoculars
Who is Jerome Powell?
Chair of federal reserve
An increase in the price of a good normally increases the
Demand for its substitues
In what way is consumer demand different from consumer wants?
Demand takes into account the ability to pay
The law of demand is illustrated by a demand curve that is
Downward sloping
A demand curve shows how quantity demanded changes as the price changes. It implies that:
Everything else that affects demand is assumed to be constant
Who is Jeremy Bentham?
Father of Utilitarianism
Which of the following statements about a demand curve is true
If a supply curve shifts, therapy changing price, the demand curve will shift as well
If the price of potato chips increase, other things constant, demand for potato chip dips will
Increase because the goods are substitutes
Two good are considered substitutes only if an
Increase in the price of one leads to an increase in the demand for the other
Which of the following statements about the substitution effect of a price change is true?
It is cause by a change in relative prices
Which of the following is a defining characteristic of a public good?
It is freely available to everyone once it is produced
The difference between fiscal policy and monetary policy
Monetary policy involves regulation of the money supply and the fiscal policy involved government spending and taxing
An improvement in technology would shift
Neither the supply not the demand curve; instead, there is a movement along both of them
The law of demand states that:
Other things constant, quantity demanded varies inversely with price
Figure 4.4 shows the supply curve for a good. According to the figure given below, which of these will result when price increases from p to p1
Quantity supplied will increase
If people believe that prices are going to be higher in the future than they are today, they will
Save more today so they will have the income to buy more in the future
If butter and magazine are substitute goods, an increase in the price of butter is most likely to:
Shift the demand curve for margarine rightward
If the price of the good describes in Exhibit 4-1 if $1.40, then there is a
Shortage of 30 units
Which of the following is not a reason why some production continues in households
Some household production requires many specialized resources
If the price of the good describes in Exhibit 4-1 is $1.60, then there is
Surplus of 30 units
Which component of U.S household spending has grown the most over the past ten years
Taxes
Which of the following best defines supply?
The amount of good that producers are willing and able to sell at each possible price, other things constant
A movement along a demand curve can be attributed to a change in:
The demand for the good
Which of the following is true of the relationship between price and quantity supplied?
There is a direct relationship between price and quantity supplied
Which of the following is true of import tariffs and quotas
They benefit domestic producers
Gross domestic product is the market value of
all final goods produced during the course of a year
A cottage industry is one that
carries out production in workers' homes
Externalities are defined as
costs or benefits that fall on third parties
Good a and Good b are complements, then a decrease in the price of good b will
decrease the demand for good a
Jennifer expects the price of chewing gum to go up by 10 percent next week
demand will increase
Households act as demanders when they demand
goods and services from firms and the government
Households act as suppliers when they provide
resources to firms and governments
The term "utility" means:
satisfaction
The term "fiscal policy" refers to
spending and taxing by governments
A tariff is:
tax on imports