Economics Test 1 Quiz Reviews

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Means that price has changed and there is movement along the demand curve

A change in demand means there has been a shift in the demand curve, and a change in quantity demanded

Positive

A good is normal if the sign on the income elasticity formula is

Decrease and quantity to decrease

A leftward shift to the market demand curve for HDTV's ceteris paribus causes equilibrium price to

The quantity demanded equals the quantity supplied

A market is said to be in equilibrium when

Higher equilibrium quantity

A rightward shift in a demand curve and a rightward shift in supply curve both result in a

A shift outward of the production possibilities curve

A technological advance would best be represented by

Has a negative slope

According to the law of demand, a demand curve

Increases as its price falls, ceteris paribus

According to the law of demand, during a given period of time, the quantity of a good demanded

Decrease and the equilibrium quantity of ice cream to increase

Assume milk is used to produce ice cream. Ceteris Paribus, a decrease in the price of milk will cause the equilibrium of ice cream to

Decrease and the equilibrium quantity of jelly to decrease

Assume peanut butter and jelly are complements. Ceteris paribus, an increase in the price of peanut butter will cause the equilibrium price of jelly to

Price elasticity of demand should become larger

Ceteris Paribus, as the number of substitutes for a good increases, the

A decrease in the demand for airline tickets

Ceteris Paribus, if buyers expect the price of airline tickets to fall in the future, then right now there should be

A decrease in the quantity demanded of digital cameras

Ceteris Paribus, if the price of a digital camera rises, then we can expect

A decrease in the supply of corn syrup

Ceteris Paribus, if the subsidies given to corn syrup producers decrease, then we can expect

More elastic the demand for the good

Ceteris Paribus, the longer the time period, the

An increase in the cost of materials used to produce skateboards

Ceteris Paribus, which of the following is most likely to cause a decrease in the supply of skateboards

An increase in consumers income

Ceteris Paribus, which of the following would generally cause an increase in the demand curve for new automobiles

How much sellers will increase production in response to a change in price

Elasticity of supply tells us

3.5 percent for each 1 percent decrease in price, ceteris paribus

For product X, the price elasticity of demand has an absolute value of 3.5. This means that quantity demanded will increase by

Opportunity costs are experiences whenever choices are made

Given that resources are scarce

A decrease in the demand for bagels

If bagels and doughnuts are substitutes, then a decrease in the price of doughnuts will result in

The elasticity number E is greater than 1

If demand is elastic then

An increase in price will reduce total revenue

If demand is elastic, then

An inferior good

If income rises by 10 percent and the quantity sold of a particular vehicle falls by 7 percent, then this particular type of vehicle is

Production of nonmilitary goods will decrease

If north korea is currently producing at efficiency and it proceeds to increase the size of its military, then as long as nothing else changes its

The percentage change in quantity demanded is greater than the percentage change in quantity demanded

If the demand for a product is elastic then

The demand is inelastic

If the price elasticity of demand for cigarettes is 0.4

0.5

If the price increases by 10%, and the quantity demanded falls by 5%, the absolute value of the price elasticity will be

The goods are substitute goods because the cross-price elasticity is +2

If the price of Coke rises by 5% and the sales of Pepsi go up by 10%, we can conclude that

That price is less than the equilibrium price

If there is a shortage at a given price then

Responsive the quantity demanded is to a change in price

Price elasticity of demand shows how

Negative

Smart phones and apps are complementary goods. The cross price elasticity of demand between smart phones and apps is expected to be

6.3

Suppose computer prices at an office supply store fall from $1000 to $900 and as a result the quantity demanded of typewriters decreases from 40 to 20 per month. The cross price elasticity of demand is closest to

The limitations that exist because of scarce resources

The PPC illustrates

The activity that is the best alternative use of your time

The opportunity cost of studying for an economics test is

The water used to make a soft drink

Which is the best example of land

more teenagers enter the labor force

Which of the following events would allow the production possibilities curve to shift outward

The economy is producing on the PPC

Which of the following is true when an economy is producing efficiently

A decrease in the size of the labor force

Which of the following will cause the PPC to shift inwards


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