Micro Midterm
According to the text, the core sphere contributes about what percent of economic activity in the United States?
32%
Which of the following factors can shift a supply curve?
A change in the technology of production
Which one of the following is not an institutional requirement for markets to operate smoothly?
An equal balance of economic power among buyers and sellers
Which of the following would not shift the supply curve for tomatoes to the right?
An increase in the expected price of tomatoes in the future
Which of the following are characteristics of public-purpose institutions?
Their primary focus is the provision of goods and services itself and not the financial benefits of these activities.
Which one of the following would not be included in the public purpose sphere?
a corner drugstore
Which of the following statements about economic models is false?
a model captures all the details of reality
Which of the following would not shift the supply curve for roasted coffee beans to the left?
a shift in tastes from coffee to tea
The textbook mentions the "Three Basic Economic Questions." Which one of the following is not included in these questions?
at what price does supply equal demand?
Which of the following pairs of goods is most likely to represent complementary goods?
beer and chicken wings
Which of the following will not cause a good's entire demand curve to shift?
change in the current price of the good
Which one of the following is not a nonprice determinant of supply?
consumers' income
Which of the following is least likely to involve an external cost (negative externality)?
eating bread at home
an auction market...
ebay
If an economy is on its production possibility frontier, then..
economy cannot produce one good without producing less of some other good
Ignoring other changes, when the price of shoes rises, the result is ...
fall in the quantity of shoes demanded
Which of the following is not one of the four essential economic activities?
firms' profit maximization
Which one of the following is an example of the economic activity of consumption?
hector enjoys watching a sunset
The term ceteris paribus means...
holding all else constant
Consider the market for cups of coffee. An increase in the number of coffee shops would likely ...
increase the supply of coffee.
If an increase in one variable is associated with a decrease in another variable, they are said to have ...
inverse relationship
Which one of the following is not necessary for something to be considered money?
it must be backed by precious metals
An analytical tool that highlights some aspects of reality while ignoring others is referred to as ...
model
The conversion of resources into usable products is referred to as ...
production
Tradeoffs between possible production levels for two goods are illustrated by the economic concept of ...
production possibilites frontier
The four essential economic activities are ...
production, consumption, distribution, and resource maintenance
A commodity market is a market for ...
raw materials
A market in which goods and services are sold in small quantities to consumers is a(n) ...
retail market
Which one of the following statements best describes a positive externality?
robin plants flowers, which her neighbor enjoys seeing
As a general rule, technological progress ...
shifts the PPF outwards
The law of demand states that, other things remaining the same, the higher the price of a good, the
smaller is the quantity of the good demanded.
Which one of the following economic actors would be classified into the core sphere?
your family
What are the two distinguishing characteristics of a public good?
It is freely available to anyone; use by one person does not diminish the ability of another person to use it.
