Econ

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what does the idea of a two sector circular flow of income depend on

what is made being sold to people in the same economic system as those who are paid to make it

the ''equilibrium price'' in a competitive market

will tend to be reached, although not necessarily immediately because of the competitive forces set up whenever price is at any other level other than equilibrium

the bank of england was found in

1694

if the tax code exempts the first $20,000 of income from taxation a $50,000 has an average tax rate of_____ percent and a marginal tax rate of_____percent

15,25

A peck is 1/4 of a bushel. if the price elasticity of demand for oats is -0.6 when oats is measured in bushels, then when oats is measured in pecks, the price elasticity of demand for oats will be

DNE

which of the following would not cause a shift in an individuals demand curve for commodity Z

a change in the price of Z

the "invisible hand" argument is that

a contraction in the quantity demanded of the other good

If two goods are complements, a decrease in the price of one of them will result in

a shift to the right in the other goods demand curve

along a society's production possibilities frontier

available resources are being used efficiently

if demand for a good is perfectly elastic then an increase in supply of the good will cause

bot the equilibrium quantity and sellers total revenue to rise

when private costs differ from social costs the resultant problem is called

externalities

if the price elasticity of supply is much greater than the (absolute value of) price elasticity of demand, a tax imposed on sellers will

cause the buyers to incur a greater burden of the tax than sellers

for an economic model to be 'well recieved' it must

generate hypotheses that have survived many attempts to falsify them

under perfect competition, rivalry is

impersonal

if peas and beans are substitutes normally an increase in the price o peas will

increase the price of beans and the quantity sold

the tax principle that takes the most amount of tax from a richer person

involves equal marginal sacrifice

the basic economic problem is essentially one of deciding hot to make the best use of

limited resources to satisfy virtually unlimited wants

if average cost rises as a firm increases its output level

marginal cost is greater than average cost

a monopolist will expand its output when

marginal revenue exceeds marginal cost

which of the following is not a potential principle for running an economy

national product or output

the firms cost functions are determined by

none of the above (the price of its product, its assets, the age of the firm, the level of demand for the product)

the type of economics which contains statements about what ought to be is called

normative

the market demand curve for a good in general shifts to right when

population rises

Hypotheses

propositions about behavior in the knowable world

which of the following is not one of adam smith's 'canon's of taxation'

smoothness so that the balls fired by the canons are perfect spheres

an externality can best be described as

the incidental production of a benefit or cost for which compensation cannot be extracted in the market

if a sales tax of $t per unit is imposed on shirts

the net revenue producers receive from each shirt will decrease

if sales tax is imposed on automobiles

the supply curve will shift upward and the market price will increase

We say capital formation occurs in an economy whenever

the supply of machinery, factories, and equipment increases


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