Econ 1

If a seller in a competitive market chooses to charge more than the going price, then

buyers will make purchases from other sellers

I'm the United States, incomes historically have grown about 2 percent per year. At this rate, average income doubles every

35 years

the design of tax policy is one of the responsibilities of economists who work at the

Department of Treasury

A rationale for government involvement in a market economy is

Markets sometimes fail to produce a fair distribution of economic well-being. Markets sometimes fail to produce an efficient allocation of resources. Property rights have to be enforced. ALL IS RIGHT

A survey of professional economists revealed that more than three-fourths of them agreed with fourteen economic propositions. Which of the following is not one of those propositions?

The United States should withdraw from the North American Free Trade Agreement (NAFTA).

Which of the following is not correct?

The gains from specialization and trade are based not on comparative advantage but on absolute advantage.

in the united states incomes have historically grown

about 2 percent per year

John Maynard Keynes referred to economics as an easy subject

at which very few excel

Policymaking in a representative democracy

benefits from the input of economists, even if their advice is not always followed

tobacco and marijuana

complements

The president of the United States receives tax policy advice from economists in the

department of the treasury

Which of the following observations was made by Adam Smith in The Wealth of Nations?

households and firms interacting in markets are guided by INVISIBLE HAND that leads to desired market outcomes

quantity demanded is on one curve

increase/decrease in demand is a new curve

sellers expecting price of *** to rise ok future

move left ON the demand curve

If the demand for a good falls when income falls, then the good is called

normal good

The signals that guide the allocation of resources in a market economy are

prices

the amount of goods and services produced from each unit of labor input is called

productivity

the fact that different countries experience different standards of living is largely explained by difference in those countries'

productivity levels

resources are

scarce for households and scarce for economies

In a market economy

supply and demand determine prices and prices, in turn, allocate the economy's scarce resources

comparative advantage

the ability to produce a good at a lower opportunity cost than another producer

absolute advantage

the ability to produce a good using fewer inputs than another producer

Macroeconomics

the study of economy-wide phenomena, including inflation, unemployment, and economic growth

Market economies are distinguished from other types of economies largely on the basis of

the ways in which scare resources are allocated