Econ
Which of the following would result in a negative change in demand for bus tickets? (choose all that apply)
an increase in consumers' incomes a decrease in the cost of new cars a decrease in the number of consumers
The price of a good or service when it's sold in the market is called the __________.
market price
If demand for potato chips decreases when the price of salsa increases, that means the two goods are ________.
complements
In a market economy, who is primarily responsible for deciding what goods and services will be produced?
consumers
A sustained fall in GDP is known as economic __________.
contraction
Change in quantity demanded can reflect changes in which of the following variables? (choose all that apply)
price
One of the biggest incentives for consumers is a low ______.
price
A government policy that sets the highest price that can be charged for a good or service is a __________.
price ceiling
The change in quantity supplied relative to the change in price is called ___________.
price elasticity of supply
The amount of money remaining when all costs are subtracted from revenues is called _______.
profit
What are activities designed to create innovative new products or improve existing products?
research and development
Productivity refers to how efficiently ________ are converted into outputs of goods and services.
resources
Two benefits usually given to full-time employees are health insurance and ___________.
retirement plans
Which of the following is a common way productivity is measured?
the number of units produced per hour of labor
Henry Hazlitt argues that in situations where workers are being paid below their market worth, the situation should be remedied not by a minimum wage, but instead by __________.
unionization
According to the lesson on consumer choice, the goal of all consumers is to maximize _________.
utility
If a lemonade stand generates $100 in total revenue with $50 in total cost, what is its profit?
$50
During the course of an entire lifetime, the earnings for a bachelor's degree could exceed those for a high school diploma by _________.
$720,000
Which of the following might be incentives for savers to put their money in a savings account? (choose all that apply)
Having their money in a separate account lessens their desire to spend the money. They feel their money is safer in the bank.
Which of the following components affect whether the supply of a good is price elastic or inelastic? (choose all that apply)
availability of raw materials for production available production capacity time period required to produce more of the product
According to Economics in One Lesson, what will happen if the government sets a minimum price for a product but doesn't restrict its output?
Unsold surpluses of the product will pile up until the market collapses.
Which of the following would result in a change in supply? (choose all that apply)
a change in the technology used to produce the good or service a change in the expectations of producers
Which of the following would result in a lower equilibrium price for milk? Assume that milk is a normal good. (choose all that apply)
a decrease in consumers' incomes a decrease in consumer preference for drinking milk
In economics, _______ is the ability and willingness to buy specific quantities of a good or service at different prices in a specific time period, all things remaining the same?
demand
Gross domestic product represents the total market value of all ______ goods and services legally produced in the economy in one year.
final
Increased productivity helps businesses make greater profits, but it also helps consumers by __________________.
giving them access to cheaper goods and services
According to Economics in One Lesson, one method the government used to raise crop prices was to give "_____________ to farmers to enable them to hold their crops off the market."
government loans
What is an incentive for savers that banks have some control over?
high interest rate
If demand for rice rises when consumers' incomes decrease, that means that rice is a(n) ________ good.
inferior
Utility is _____________.
inherently unmeasurable
Personal satisfaction is a(n) __________ incentive.
intrinsic
Hazlitt argues that the best way to raise wages is to raise labor productivity. Which of the following are methods for accomplishing this? (choose all that apply)
more efficient management on the part of employers better education and training
If demand for video games rises when consumers' incomes increase, that means that video games are a(n) ________ good.
normal
Private individuals who develop new products and technologies can protect their invention by filing for a(n) ______.
patent
A reward or other enticement that encourages a behavior is a(n) _______ incentive.
positive
The income generated by the sale of goods and services is called ________.
revenue
When a positive change in demand occurs, the demand curve will shift _______.
right
Utility is the __________ consumers get from goods and services.
satisfaction
The real cause of rising prices is a scarcity of goods or a surplus of money.
scarcity surplus
If the market price for Super Bowl tickets is $2,000, and the equilibrium price is $3,000, there will be a(n) ________ of Super Bowl tickets.
shortage
According to Economics in One Lesson, people who advocate establishing a price floor argue that they're not trying to boost the price but are only trying to _________ it.
stabilize
Which of the following are controls used to try to offset the negative effects of setting a maximum price? (choose all that apply)
subsidies rationing cost-control universal price-fixing
Which of the following is partly determined by costs of production?
supply
Oil prices collapsed in 2014 for two main reasons: an increase in [ Select ] and a decrease in [ Select ] .
supply demand
Which of the following would result in an increase in quantity supplied? (choose all that apply)
a price increase an increase in the cost of resources used in production
Human capital refers to the skills, knowledge, and __________ that an individual brings to the workplace.
experience
Rewards like wealth, fame, or praise are examples of _________ incentives.
extrinsic
What is the graphical representation of a supply schedule called?
supply curve
What is a table that shows the quantity supplied at different prices, all things remaining the same?
supply schedule
Which of the following would cause a positive change in supply for trucks? (choose all that apply)
the development of new assembly line technology that makes building vehicles cheaper and more efficient a decrease in the cost of steel used in the production of automobiles
If a nation has a GDP of $1,000,000 and a population of 1,000, what is its per capita GDP?
$1,000
If a video game generates $10,000 in profit on total revenue of $30,000, what was the game's total cost?
$20,000
How much of the total national income of the United States is made up of corporate profits?
6.6%
According to the lesson about profit, why is raspberry soda much harder to find than cherry soda?
As a whole, consumers are more likely to buy cherry soda than raspberry soda.
Why might a soda company lower their prices when production costs fall? (choose all that apply)
Because production costs are lower, the company can earn the same profit per unit even if they sell their products for less. The company hopes more consumers will buy their product at the lower price. Other soda companies have lowered their prices and are stealing away customers.
If the price of milk increases, then what will happen to demand for milk, if all other things remain the same?
Demand will decrease.
In order to offset the decreased profit caused by fixing a maximum price, governments sometimes pay subsidies to producers. What situation does this create?
People in their role of taxpayers end up subsidizing themselves in their role of consumers.
An idealized model of competition where all buyers and sellers must take the market price as a given is _______ competition.
Perfect
Which of the following is true about the supply-and-demand price system? (choose all that apply)
It drives the least efficient producers out of business. It solves the problem of alternative applications of labor and capital.
During World War II, the American government established a rationing system to counteract the shortages caused by fixing maximum prices. Why is rationing only partly effective in counteracting these shortages?
It only limits the demand without also stimulating the supply.
If there is a negative change in demand, what will happen to the equilibrium price?
It will decrease.
In the year 2017, which nation had a greater per capita GDP than the United States?
Norway
What two choices does a company have when production costs rise? (choose all that apply)
The company can increase their prices. The company can accept lower profits.
Which of the following are consequences of holding the price of a product below its market level? (choose all that apply)
The demand for that commodity will increase. The supply of that commodity will be reduced. Marginal producers will be driven out of business.
revenue
The labor and capital devoted to its production are misdirected.
What would happen if a clothing manufacturer discovered a machine that would allow him to make overcoats for half as much labor as before? (choose all that apply)
The manufacturer installs the new machines and reduces his labor force by half. The manufacturer's profits increase, and he ends up giving indirectly as many jobs as he ceased to give directly.
If there is a positive change in supply, which of the following will happen? (choose all that apply)
The supply curve will shift to the right. The equilibrium price will decrease.
Which of the following would cause a negative change in supply for corn? (choose all that apply)
an increase in the cost of tractors used in corn fields an expectation among producers that corn won't be very profitable in the near future a decrease in the number of corn sellers
Which of the following would result in a positive change in demand for pizza? (choose all that apply)
an increase in the price of burgers an increase in the number of consumers
According to Economics in One Lesson, "In an economy in equilibrium, a given industry can expand only ___________."
at the expense of other industries
A restriction on total spending is called a _________ constraint.
budget
A shift in the supply curve caused by a change in the determinants of supply is called _______.
change in supply
Rent control is an example of a price __________.
ceiling
If the cost of steel used to produce automobiles increases, what will happen to the quantity supplied of automobiles, assuming the price that consumers pay for automobiles stays the same?
decrease in quantity supplied
Consumers can discourage production of a particular product by casting their ______ votes elsewhere.
dollar
If demand for candy goes down 20 percent when the price goes up 10 percent, then we would say that demand for candy is _________.
elastic
The degree to which buyers and sellers respond to price changes is called ________.
elasticity
Consumer preferences are commonly impacted by new technology, as well as by health and __________ concerns.
environmental
The one price at which quantity supplied equals quantity demanded is the ___________ price.
equilibrium
The law of supply says that if the price of a good or service increases, then supply will ______.
increase
In a competitive market economy, who is driven out of business by a fall in price?
inefficient producers
In this market, the "sellers" are the workers looking to sell their time and skills in return for wages, while the "buyers" are the businesses looking to hire these workers.
labor market
According to Economics in One Lesson, minimum wage laws are a(n) ________ weapon for combating low wages.
limited
An activist who attempts to persuade politicians to vote for legislation that benefits their group is a _________.
lobbyist
According to the law of demand, consumers will buy more of a good or service at _______ prices.
lower
As an individual, you are most productive when _____________.
you reach a particular goal with minimum effort or cost
Which of the following happened in the stocking industry during the Industrial Revolution? (choose all that apply)
Handicraft workers rioted, destroying the new stocking frames and threatening the inventors.
According to Economics in One Lesson, which of the following are "essential for the health of a dynamic economy"? (choose all that apply)
Growing industries should be allowed to grow. Dying industries should be allowed to die.
Which entrepreneur revolutionized the automobile industry by introducing the moving assembly line?
Henry Ford
Which of the following are important ways to prepare for the unpredictable future of work? (choose all that apply)
Learn how to learn and be flexible and adaptable. Say yes to opportunities and be willing to challenge your assumptions about yourself.
There are two ways by which machines increase productivity and quality of life. One way is making goods cheaper for consumers. The other is increasing wages because they increase ______________.
the productivity of the workers
In Economics in One Lesson, Hazlitt argues, "There is no escape from the conclusion that the minimum wage will increase ___________."
unemployment
From left to right, supply curve always slope [ Select ] while demand curves slope [ Select ] .
upward downward
__________ is a great way to not only help those in need but also gain valuable experience and increase your human capital.
volunteering
