Econ

Staci's Sign Shoppe makes signs for businesses. Staci is currently producing 210 signs per week with three employees. She hires an additional worker and total output per week rises to 328 signs. The marginal product of the last worker is _____ signs

118

Suppose that the quantity demanded for a product falls by 9% as people's incomes fall by 3%. What is the income elasticity for this good?

3%

If hot dogs and relish are complements, their cross elasticity of demand is

less then 0

what is the change in total revenue that results from the sale of one added unit of product.

marginal revenue

A shift to the right of the demand curve could be caused by a(n

rise in income

what are the characteristics of a monopoly

single seller, no close substitutes, high barriers to entry

If the cross elasticity of demand for two goods is negative, that means that they are

substitutes.

Percentage change formula

(percent new-percent old/old)x 100

If a product's price rises by 6% and its quantity demanded falls by 8%, then we can say that demand for this product is

-1.333

A grocery store announced a 50% decrease in the price of local honey. Sales increased by 200%. Based on the information, the price elasticity of honey is

-4

Walmart is thinking about offering a 25% discount on a brand of shoes. If the elasticity of demand is two, then the discount would increase sales by

50%

The Wonderful Gadget Company produces 500 gadgets per week with 50 employees. It hires an additional worker and output rises to 507 gadgets. The marginal product of the last worker hired is _____ gadget(s)

7

What is marginal analysis

An analysis to determine when optimal quality is reached

elasticity of demand formula

E=%change of quantity demand/% change of price

A market situation in which large numbers of firms produce similar but not identical products is:

Monopolistic Competition

The price of automobiles is rising because more people want to purchase cars. As a result,

More cars will be made

A shift to the right of the supply curve could be caused by a(n)

New technology

Scarcity is BEST defined as when

Our unlimited wants clash with limited resources, leading to scarcity.

The opportunity cost of undertaking an activity is defined as the

The value of the next best alternative; what you give up to do something or purchase something.

Marginal analysis would put an emphasis on

additional costs and benefits

Marginal product is defined as the

additional output produced as a result of utilizing one more unit of a variable resource

Paying a salesperson more for increased sales is an example of

an incentive

A decrease in demand causes the equilibrium price to _____ and the equilibrium quantity to _____.

decrease, decrease

When a large factory closed in the town of Greenville, income fell for many residents. As a result, demand for normal goods would _____ and demand for inferior goods would _____.

decrease, increase

What economic term is how well resources are used and allocated

efficiency

For all firms, regardless of the market structure, the profit-maximizing rule is to produce at the point at which marginal revenue

equals marginal cost

When quantity demanded in a market equals quantity supplied, then the market is in

equilibrium

What economic term is the fairness of various issues and policies

equity

Money that a firm spends on health care for employees is a(n)

explicit cost

Economic costs are the sum of _____ and _____.

explicit costs and implicit costs

Total costs are a combination of

fixed and variable costs (labor and materials)

The greater the percentage of the budget spent on a good, the

higher is the elasticity of demand.

Which characteristic is found in a perfectly competitive market

include insignificant contributions from the producers, homogenous products, perfect information about products, no transaction costs, and no long-term economic profits.

The law of supply states that as prices _____, the quantity _____.

increase, increase

A firm increases its price for a good and total revenues increase. From this, we can conclude that its demand

increased

Economics is a social science that involves the study of how individuals, firms, and societies

microeconomics

In general, the flatter the supply curve is

more elastic is supply.

There is a(n) _____ relationship between price and quantity demanded

negative

If the income elasticity of demand for tea is 0.50, tea is a

normal good

A(n) _____ market is a market in which just a few firms control a large market share

oligopoly

The highest valued alternative that is forgone when you choose an action is called its

opportunity cost

The calculation for economic profit is total revenue minus

total costs

Price per unit times the total quantity sold is:

total revenue

If the percentage change in quantity demanded is equal to the percentage change in price, then demand is

unitary elastic

Thinking at the margin involves

weighing the impact of one additional activity