Macroeconomics Exam One

Which of the following decreases the supply of popcorn?

A decrease in the number of popcorn producers.

When people's incomes increase, the demand for a good increases. The good is called?

A normal good.

Between 2001 and 2015, equilibrium college tuition rose from 15,000 to 27,000 and equilibrium enrollment increased from 16mil to 21mil. These changes could be the result of?

An increase in demand.

Tom takes 20 minutes to cook an egg and 5 minutes to make a sandwich. Jerry takes 15 minutes to cook an egg and 3 minutes to make a sandwich. If tom and Jerry trade?

Both will benefit.

Which of the following pairs of goods are most likely substitutes?

Cola and lemon lime soda.

When supply decreases and demand does not change, the equilibrium quantity_ and the equilibrium price-

Decreases, rises.

If income increases or the price of a complement falls, the?

Demand curve for a normal good shifts rightward.

An unusually warm winter shifts the?

Demand curve of gloves leftward.

A surplus occurs when the price is?

Greater than the equilibrium price.

A person has a competitive advantage in producing a particular good if that person.

Has higher productivity in producing it than anyone else.

A country that has an absolute advantage in producing all goods will

Have a comparative advantage in some goods but not all.

Which of the following is an example of a positive statement?

Households are the primary source of saving.

Which of the following is NOT one of the factors that influence the supply of a product.

Income.

The law of demand is illustrated by a?

Movement along the demand curve.

Economic growth is the result of all the following except?

Opportunity cost

Which of the following is a positive statement

People buy more of a good when the price falls

The existence of a shortage.

Pushes the price up.

As the price of a pound of peanuts falls, the.

Quantity of peanuts demanded increases.

As the price of a pound of peanuts falls, the

Quantity of peanuts supplied decreases.

Technology progress makes the production possibilities frontier

Shift outward from the origin.

You observe that the price of a good rises and the quantity decreases. These observations can be the result of the?

Supply curve shifting leftward.

The production possibilities frontier shifts as?

Technology changes.

Marginal benefit is the benefit.

That arises from an increase in an activity.

A supply curve shows the relation between the quantity of a good supplied and?

The price of the good. Usually a supply curve has positive slope.

If a market is NOT in equilibrium, then which of the following is likely to occur?

The price will adjust to bring the market to equilibrium.

The "law of demand" states that changes in.

The quantity demanded of a good are inversely related to changes in its price.

The quality of iPads that people plan to buy this month depends on all of the following EXCEPT the.

The technology used to produce an iPad.

The price of a good will fall if.

There is a surplus at the current price.

When a market is in equilibrium?

There is no shortage and no surplus at the equilibrium price.

Suppose the equilibrium price for soft drinks is $1. If the current price in the soft drink market is $1.25 then?

There will be a surplus of soft drinks.

Consider the market for broccoli. If the price of a pound of broccoli increases, what happens to the supply of broccoli?

There will be no change in the supply of broccoli, but instead there is an increase in the quantity supplied of broccoli.