Macro - Chapter 3
Which of the following are examples are:
- a local gas station -NYSE - Amazon - pay to play online gaming site
demand schedule
- a table showing the quantities of a good a consumer is willing and able to buy at alternative prices in a given time period, ceteris paribus
which of the following are determinants of demand?
- consumer taxes -consumer expectations - consumer income -prices of related goods -number of buyers
Surplus
a surplus is also known as an excess of....
government provided goods an services are not free because
- consumers and businesses pay taxes to receive goods and services - a cost is borne by society is utilizing resources to produce any good or services
from an economic perspective, which of the following are true of a market?
- it is a place where buyers and sellers interact in their desire to buy and sell a good or service - it is a virtual and or physical institution or space
price ceiling in the market for human organs would result in...
- lost lives - shortage of organs
which of the following are determinants of supply
- subsidies - taxes
international participants participant in the product market by
- supplying imports - demanding exports
international participants participate in the factor market by
- supplying resources -demanding resources
quantity
- the interaction between buyers and sellers determines equilibrium price and equilibrium ..
which of the following scenarios illustrate the relationship between a good and its complement ?
- when the price of maple syrup increases, the demand for pancakes decreases - when the price of cars decrease the demand for gasoline increases
In the supply and demand model, quantity demanded is illustrated on the vertical axis, while price is illustrated on the horizontal axis
False
The three man decision that must be address by an economic system include what goods are to be produced, who will produce them and where they will be produced.
False: - an economic system has to determine who, what and how.
If there is a shift of the demand curve or a shift of the supply curve, it will not disturb the equilibrium price and quantity
False: - a shift of the curves alone or simultaneously will create a new point of intersection between both curves, this establishing a new equilibrium
quantity demanded; demanded
a change in .... refers to a movement along the demand curve in response to changes in the price of a good or service, whereas a change in .... refers to a shift of the demand curve leftward or rightward in response to anything other than changes in the price of a good or services.
Other things equal, the fundamental characteristic of supply is:
as price falls, the quantity supplied falls
shortage; surplus
at equilibrium price, there is neither a market.....nor a market.... because the quantity demanded by consumers at a specific price is identical to the quantity supplied at that same price
the equilibrium price will ..... whenever the supply or demand curve shifts
change
demand
consumption of a product
What:
decisions related to the mix ( quantity and type) of goods and services to make available in a given economy.
How:
decisions related to the mix of factor inputs (land, labor, capital) used to produce goods and services
for whom:
decisions related to who is going to consumer the goods and services provided
A table showing the quantities of a good consumer is willing and able to buy at alternative prices in a given time period, ceteris paribus is a _____ schedule
demand
demand decrease and supply stays constant
equilibrium price falls and equilibrium quantity falls
supply increase and demand stays constant:
equilibrium price falls and equilibrium quantity rises
demand decreases and supply increases
equilibrium price falls and the change in quantity is indeterminate
if an increase in supply is greater than an increase demand, the equilibrium price will
fall
A shift leftward: decrease
in supply while holding demand constant results in an increase in equilibrium price, but a decrease in equilibrium quantity.
when consumers purchase a good or service , they do so in order to...... their level of utility or satisfaction
increase
market supply
is a schedule or curve showing the various amounts of product that producers are willing and able to make available for sale at each possible price during a specific period.
the equilibrium price where the quantity demanded equals the quantity supplied is otherwise known as...
market clearing price
Due to scarce resource, every individual, whether rich or poor is faced with ______ cost when choosing to produce or consume more of one good than another
opportunity
supply:
refers to the production of a product
equilibrium price and quantity
reflect a compromise between buyers and sellers.
the demand curve
shows the quantities of a product that will be purchased at various possible prices, other things equal.
upward sloping curve
supply curve
market supply
the ability and willingness to sell specific quantities of a good at alternative prices in a given time period, ceteris paribus.
supply increases and demand increases:
the change in equilibrium price is indeterminate and equilibrium quantity rises
purchase; sell
the function of business in the circular flow model is to..... factors and .... products
profit
the goals of producers is to maximize
the participants involved in the circular flow model are
the government, consumers, businesses and international participants
a consumers willingness to purchase in a market must be supported by the ability to make the purchase as evidenced by:
the necessary income
the market mechanism
the use of market prices and sales to signal desired outputs ( or resource allocations)