Econ Homework Questions #1-3

(image)in exhibit 4-2, which of the following might cause a shift from S1 to S2?

a decrease in input prices

with an upward sloping supply curve, which of the following is true

a decrease in price results in a decrease in quantity supplied

the term ceteris paribus means that:

all other things remain unchanged

which of the following statements is true of a market

an increase in demand, with no change in supply will increase equilibrium price and quantity

the law of demand is the principle that there is ______ relationship between the price of a good and the quantity buyer are willing to purchase in a defined time period

an inverse

the opportunity cost to a city for using local tax revenues to construct a new park is the

best alternative forgone by building the park

the law of demand indicates that as the price of a good increases:

buyers buy less of it

what will cause a movement along the supply curve

changes in the market price of a good, other things held constant

(image) in exhibit 2-13,which of the following is not true regarding point H? point H:

could be achieved today if economy only achieved full employment

a hurricane destroyed the peach crop in South Carolina. Shortly after the price of peaches rose significantly. These events suggests that a(n):

decrease in the supply of peaches caused the price of peaches to rise

which of the following is the best definition of economics

economics is the study of how society chooses to best allocate its scarce resources

the law of demand says that the lower the price charged for a good, ceteris paribus, the:

greater the quantity demanded per period of time

and increase in the demand for tattoos would lead to:

higher price and larger quantity sold

he factors of production are what:

land (natural resources), labor (human capital, entrepenuership), and capital (constructed inputs like factories)

the basic difference between macroeconomics and microeconomics

microeconomics concentrates on the behavior of individual consumers and firms while macroeconomics focuses on the performance of the entire economy

bobby's neighbor is growing a tree that is blocking bobby's ocean view. Bobby is considering taking his neighbor to court. this is most likely an example of:

negative externality

at a price of $5, Sam buys 10 units of a product; when the price increases to $6, Sam buys 8 units. Martha says Sam's demand has decreased. Is Martha correct?

no Martha is incorrect. Sam's quantity demanded has decreased and his demand has not changed

(image) in exhibit 2-13, in terms of efficiency

point A is preferred to point D

if the demand for a good decreased, what would be the effect on equilibrium price and quantity

price would decrease, quantity would decrease

if the supply of a good decreased, what would be the effect on the equilibrium price and quantity

price would increase , quantity would decrease

if the quantity demanded increases by 20 percent in response to a 10 percent decrease in price, demand is classified as

relatively elastic

if consumer incomes go up, and Harley Davidson motorcycles are a normal good, the effect on the demand for motorcycles, ceteris paribus, will be a(n):

rightward shift in the demand curve for motorcycles

assuming that soybeans and tobacco can both be grown on the same land, a decrease in the price of tobacco, other things being equal, causes a(n):

rightward shift in the supply curve for soybeans

assume the equilibrium price for a good is $5. is the market is $10 a:

surplus causes the price to decline toward equilibrium

when economists say scarcity they mean:

the human desire for goods exceeds the available supply of time, goods and resources

the opportunity cost of an action is

the value of the best opportunity that must be sacrificed to take an action

if the equilibrium price of bread is $2 and the government imposed a $1.50 price ceiling on the price of bread, then:

there will be a shortage of bread

people are forced to make choices because of:

unlimited wants and limited resources

farmers can produce wheat/rice. what will happen in the wheat market if there is an increase in the price of rice?

wheat supply will decrease

beginning from equilibrium at point E1 in exhibit 4-2, an increase in the demand of good X, other things being equal, would move the equilibrium point to:

E4