econ

You want to watch football and also go for a walk.You think hard about how to allocate the next hour between watching footballand going for a walk. You decide to spend the first 20 minutes watching football and the remaining 40 minutes going for a walkgoing for a walk.Your decision is an example of​ _______.

making a choice at the margin

Suppose the current price of a pound of steak is​ $12 per pound and the equilibrium price is​ $9 per pound. In this​ case, there is a

​surplus, so the price falls and quantity demanded increases.

​________ economies include​ ____________.

​Advanced; France, Australia and South Korea

The price elasticity of demand is a measure of

​buyers' responsiveness to changes in the price of a product.

The most people live in​ ________ economies and the fewest people live in​ ________ economies.

​developing; emerging market

Apple's new iPhone 6 sold out quickly in the United States and to avoid the same outcome in other national​ markets, Samsung and LG cut the prices of their Galaxy and V10 smartphones by over 10 percent.Will a price cut by Samsung and LG increase their total​ revenue? If Apple also cuts its​ price, what will happen to the total revenue from all smartphone​ sales? If only Samsung and LG cut their​ price, their total revenue will​ _______. If at the same time Apple also cuts its​ price, the total revenue from all smartphone sales will​ _______.

​increase; decrease

Read Eye on the Price of Coffee and explain how we know that the price increased in 2014 because the supply of coffee decreased and not because the demand for coffee increased. Using the demand and supply model we know the​ following: ​_____ brings an increase in price and a decrease in​ quantity, which is what happened in the market for coffee. ​_____ brings an increase in price and an increase in​ quantity, which is not what happened in the market for coffee.

A decrease in​ supply; An increase in demand

Which of the following statements is correct for the price elasticity of demand along a​ linear, downwardminus−sloping demand​ curve?

At high​ prices, demand is elastic but at low prices demand is inelastic.

The Organization of the Petroleum Exporting Countries​ (OPEC) produces about 40 percent of the​ world's output of crude oil. With the global demand for oil​ falling, OPEC has cut production in an attempt to stop the price sliding further from its high of​ $147 a barrel. OPEC knows that to raise the world price of oil it has to cut the total production of its member countries. ​Source: AFP, May​ 2, 2009 OPEC also knows that the demand for crude oil is inelastic. Is it possible to conclude from these facts that​ OPEC's total revenue would increase if it were to cut its​ production?

No because​ non-OPEC oil producers can increase​ production, which lowers the price.

Which of the following is an example of capital goods​?

The government will open another public school in the area.

An example of ceteris paribus is the statement​ ______.

To study the effect of a wage rise on the number of employees, keep the population constant

Which of the following is NOT considered an example of a capital​ good?

a U.S. government bond

Which of the following is NOT considered a consumption​ good?

a UPS truck

Nigeria would be classified by the International Monetary Fund as

a developing economy.

Which of the following is a consumption good or​ service?

a personal computer purchased in order to play games at home

An example of a capital good is​ ____________.

a satellite communication system

​If, to avoid a​ boycott, grocery stores did not raise the price of​ pasta, _____ would arise and the price would​ _____.

a shortage of​ pasta; eventually rise

Poland is classified as

an emerging market economy

Demand for a product tends to be more elastic the longer the time period considered because

buyers have more time to search for substitutes.

Based on the data in the table​ above, ice cream and cake are​ ________ goods.

complementary

Items that are purchased by individuals for their own enjoyment are called

consumption goods and services.

The extent to which the demand for a good changes when the price of a substitute or complement​ changes, other things remaining the​ same, is measured as the

cross elasticity of demand.

Moving downward along a linear ​(straightminus−​line) downwardminus−sloping demand​ curve, the

demand becomes less elastic.

When the percentage change in the quantity demanded exceeds the percentage change in​ price, then demand is

elastic.

he demand for a good decreases by 10 percent and the supply of the good decreases by 8 percent. The price of the good​ _______ because​ _______.

falls; demand decreases by more than supply decreases and when demand decreases the price falls

What is the effect on the equilibrium price and equilibrium quantity of orange juice if orange juice becomes less popular and a cheaper robot for picking oranges is used

falls​; increases, decreases, or remains the same

Economists use elasticity to measure the responsiveness of quantity to a change in price rather than the slope of the demand curve because elasticity is

independent of the units of measurement.

Most economic graphs have two lines perpendicular to each other. Where these lines meet is called the

origin.

When there is a shortage of parking spaces at your​ college, the

quantity of parking spaces demanded is greater than the quantity of parking spaces supplied.

Moving downward along a linear ​(straightminus−​line) downward sloping demand​ curve, the

slope is constant.

If Brazilian oranges are sold in the U.S.​ market, the​ _________ will increase because​ _________.

supply of orange​ juice; the cost of producing orange juice will fall and the quantity demanded will increase

The United States does not allow oranges from Brazil​ (the world's largest producer of​ oranges) to enter the United States. If Brazilian oranges were sold in the United​ States, oranges and orange juice would be cheaper. Use the laws of demand and supply to explain whether the above statement is true or false. If Brazilian oranges are sold in the U.S.​ market, then the​ _________ will​ increase, the price of oranges ​ _________.

supply of​ oranges; will​ fall, and the statement is true

The number of logging firms increases. Which of the figures above best illustrates this​ change?

supply shift to the right

Which figure above shows the effect of a decrease in the number of pizza​ sellers?

supply shifts to left

In an effort to protect endangered species from the effects of logging in​ America's national​ forests, the federal government passes a law prohibiting logging in most of the state of Washington. Which of the figures above best illustrates the effect of this new​ law?

supply shifts to the left

During the recession of the late​ 2000s, many homeowners defaulted on their home loans. As a​ result, banks made it harder to people to borrow. In the market for​ homes, ______.

the demand for homes decreased. With no change in the supply of​ homes, the price of homes fell

Human capital is​ _______.

the knowledge and skill that people obtain from​ education, on-the-job​ training, and work experience