econ final
according to your textbook authors, economics is generally
a method rather than a body of settled conclusions
a unit of output whose production and sale adds less to cost than in generates in additional revenue is
a profitable unit to produce and sell
other things constant, which of the following would tend to decrease the demand for disney world vacations
a rise in income, if disney world will raise its price after the is summer
price searchers
actions of theses firms affect price so consider the mc and mr connection
the high- schools dropout rate usually declines in an economic recession becasue
adecline in job opportunities lowers the opportunity cost of remaining in highschool
to economize means to
allocate available resources in a way that yields the oat value to the economizer
according to your text the "market economy" can best be understood as
an extremely complex institution that emerged out of individuals specializing and trading with others
which of the following would tend to increase the demand for college textbooks
an increase in the number of enrolled college students
according to your textbook, which of the following best explains the fact that income inequality has increased in the us since 1980
an increases in the supply of less- skilled 2workers combined with an increase in demand for more highly-skilled workers
the federal trade commission act of 1914 was charaxctized best by creating
an independent agency
if nation-states are abe to extend effective control over ocean resources from 3 milise to 200 miles of their costs valuable marine animals are more likely to be harvested
at a rate consistent with their long run preservation
a national taco chain offers in-house costumers free refills on drinks. it is clearly
attempting to increase its total profit
your text suggests if the price of insulin were to significantly increase, more diabetics will likely
avoid refilling their prescriptions as regularity, turn towards substitutes such as a better diet and exercise, adopt holistic healthcare, organic medicines, and other perceived substitutes
the textbook cautions against speaking of the people as wanting a particular good
because it is not clear in what sense collectives as distinct from individuals can even have wants
if the ncaa prohibits college and universities form offering more than room, board, and tuition to outstanding high school football and basketball players the recruitment practies of athletic department will
become constantly more complex and costly
according to your text, there are substitutes for any scarce good
but it often takes time for consumers to seek out useful substitutes
retailers and other middlemen provide benefits to patrons
by lowering the cost to their costumers of acquiring valuable information
according to an economic explanation, social interactions are the result of
calculated choices by individuals
the problem of free riders arise in a society when goods
can be scarce
until recently cd ripoff was the only music store selling compact disks in the small town of backs ager isa. now the internet cable has reahed backwater, allowing households there to download music. over time
cd ripoff's consumers will be more price sensitive than before
according th our author, economics is the study of ____ and it's ___
chocie, uninteded consiquences
no one can make a pencil this statement highlights
cooperation and complex set of markets
suppose consumers view the George foreman girl and the weber charcoal girl as close substitutes. other things constant a fall in price of the George Forman grill would tend to
decreased the demand for the weber grill
restraunts catering to a lunch and dinner trade are likely to mark their prices up above the cost of food more for dinner than for lunch because the
demand is less elastic at dinner
how is a politician similar to an entrepreneur
each advances a project only if the expected marginal benefits exceed to excepted marginal costs
which of the following characteristics has the single greatest impact on a household's income
education
a professor who posts the course syllabus and encourages students to select an alternative class or section during the first week is providing the opportunity for students to ____
either buy in or to buy out as advance, informed consent
the economic way of thinking
explains how social order and cooperation emerge from the actions of individuals
public goods are characterized by
free- riding
rank the following goods from least to most elastic gasoline, uncoil gasoline, , gasoline at murhpy's unocal station
gasoline, uncoal gasoline, gasoline at murphy's uncoal station
elastic demand sike was able to increase net revenue by charging different prices to different buyers b/c
his marginal costs declined as his sales increased
people who come to fear that their wealth is going to be confiscated will acquire a relatively greater incentive to invest in
human capital
a business can operated profitably at a loss for an indefinite period of time
if it is unable to meet all their obligations but to cover operating costs
from the economic point of view, why will an avid downhill skier devote many hours to reading comparing, and testing a new pari of ski boots but only a few hours to deciding who to vote for in the state snator race
in his estimation being highly informed about ski boots is better use of his time compared to being highly informed about potential state senators
if costco reduced its grocery prices below cost in a particular metropolitan are and kept them there until all other grocery stores in the area had been forced into bankruptcy, costco would almost certainly sustain huge net losses
in the shot and long run because grocery stores would reappear quickly when costco subsequently set high prices
which of the following measures shows the most equlity
income after taxes and transfers
a truly voluntary exchange
is not an exchange of equal value
people use water for trivial, unimportant purposes because
its relative price is very low
government failure occurs when
lobbyists have increased influence.
cost plus reconsidered
look again for this persistent rationale
the HHI is a measure that uses the
market share of each firm square and summed across 50 firms
market fialure refers to the continuing difficulty of a market to hanged which of the following
monopoly, spill overcosts and spill over benefits public goods
_____ people will seek medical care when the price of a doctor's visit_____
more: falls
price discrimination by sellers usually result in
new and additional opportunities for some buyers
consider a tragic and hart-wrenching case in which a cancer patient is told he needs chemotherapy in order to live three more years at best, but the patient's final three years will be filled with all the terrible side0effects of the treatment. WSithout it, he will surely die within a year. but his quality of live would be better. Suppose he chooses to quit chemotherapy. the economic way of thanking would conclude
none of these are true
do costs determine prices?
nope - not even markups: linked elastic demand and prices of lunch and dinner in text
pick the source good below with the completely inelastic vertical demand curve
nothing
externalities occur
only when the decision maker does not take into account all the benefits or costs from an action
the ability of employers to increase their net revenue by paying low wages in limited primarily by
other opportunities available to employees
according the physicians people should drink eight full glasses of water per day to maintain optimal health,it is now common knowledge. but people don't necessarily follow doctors orders because
people value other goods in addition to optimal health
legislators who must stand for re-election every two years will tend to support
policies promising early benefits and deferred costs
one year after the september 11 2001 terrorist attack, journalist were running stories saying nobody will fly on the anniversary of 09/22 as the one-year anniversary of 09/22 neared, however prices were cut substantially and planes were quite full, which of the following best explains the full plane on 09/11/02
price decreased and quantity demanded increased
if freezing weather in florid destroys a large portion of the current orange crop
price of florid oranges will rise and quantity demanded will fall
jack trades his basketball for jim's baseball glove. This simple trade is
productive, because jacky and jim expect to be better off by trading
suppose Carmen buys romen noodles. To determine whether ramen noodles are a normal or inferior good for her we must observe how carmen
responses to change in her income
price makers
same as price searchers check monopoly, oligolpolistic computation, cartelss
economists fin the notion of people " needing things to be
seriously misleading because they ignore substitutes
in our classroom auction, the role played by intentions in exchanges whom were you trying to help is best summarized by which of the following statements
stated intentions did not matter
in the duepont suran wrap case the us supreme court used the economic concept of ____to conclude________ that the company was _______ a monopolist
subsitutes: correctly: not
evidence of degree of movement among quantiles in the income distribution reveal there ++++ movement
substantial
suppose the market clearing price for apples rises from 200 to 300 per pound and the overall market clearing output decreases form 1million to 1/2 million pounds. how can we explain the increase in price and the decrease in market output?
supply decreased and demand remained unchanged
rational ignorance helps to explain
t eh low level of understanding political behavior
in our auction's ester round with one buyer and three sellers, the result of that round illustrated
that a will-intentioned law closed options that others would have freely chosen
which of the following is the best example of a free good?
the air you currently breathing
suppose the average person needs 8 glasses of water each day to maintain optimal health. What would an economist conclude
the amount the adverse person drinks will depend upon what has to be given up to acquire the additional glasses of water
if a commercial airline starts offering maxi-sever fares at huge discounts to passengers who purchase tickets at least 30 days in advance and agree to stay over a saturday night what is the most likely effect upon first-class passenger service
the demand for first-class service may fail somewhat because the price of a substitute good as decreased substantially
complementary goods are goods people consume together, such as peanut butter and jelly. if the price of peanut butter falls, we predict
the demand for jelly would increase
suppose drug companies come out with a new wonder-drugs capable of curing the common cold
the demand will increase if the drugs can only be obtained with a physician's persciption
percentage markups are characteristically lower in supermarket than in convince stores because t
the dmand curve of customers patronizing supermarkets tend to be more elastic
which of the flowing would be most likely to cause an increases in the demand for gold?
the expectation of future incases int eh price of gold
which of the statements below best express the relationship between the cost of a medical education nd the fees charged by physicians
the greater the expected costs of medical education, the fewer physicians there will be and the higher their fees will be
in our classroom auction th obeyers and sellers having the most difficult time exchanging were
the high cost sellers and those with few $ to buy
according to economists national defense can be supported through taxation because
the people who refuse to pay the cost cannot easily be excluded front eh benefits
the rush - hour traffic example in class i-540 and our text, illustrated
the role of generally accepted norms and adjustments
less demand causes lower price, and owed prices cause more demand the above statement shows
the speaker has confused himself fby saying demand in the second half to the statement when he meant quantity demanded
the demand for a good is inelastic if when its price rises,
the totla dollars expenditure on the good increases
from the economic point of view, what does a professor who posts her syllabus on the internet
they are expanding the range of opportunities available to others
according to the textbook income inequality statistics can be misleading because
they ignore the income mobility of individual families and households through time
oneo well established full - service stock brokerage charges 35$ commission per table. a new online brokerage charges $7.95 per trade, yet many people still elect to use the traditional, full service broker why?
they might perceive the low commission to be a sign of low reliability
buisness executives who think the demand fro their product is very elastic at the current price are assuming
they will sell more units and receive more dollars in sales revenue at a lower price
which group below will generally have a difficult time finding employment if a nations minimum wage were increased
those who are among the younger job seekers
economic considerations presume that people want
to advance to projects in which they are interested.
price discriminations
to possibly increased by pricing the elastic demand
lifetime income reflects__ paptterns
traditional
in the economic way of thinking a tax on pullutants
tries to alter relative money costs to reflect new decisions about who has which rights
comparing the profile of families in the upper 20% of income recipients with the lowest 20% reveals that the highest income families are characterized by
two income aults
which of the following statements is true
two of the choices are true
in chapter 1 your authors marveled at the way highway traffic is orderly and self-regulating in chapter 6 haowerever they discuss a growing problem on urban roadways- congestion. what is the cause of roadway congestion
typically road use is a scarce good with a zero price tag
the tax foundation report of november 11 2013 indicated that the overall redistribution of income
was about 2 trillion
WHEN THE PRICE OF PIZZLE TREES INCREASED BY 20 PERCENT LAST YEAR, CONSUMERS ENDED UP SPENIDNG 10 percent more on the purchase of puzzle trees. this shows that the demand for puzzle trees
was inelastic
people use water for many different purposes from drinking and cleaning to filling pools , balloons, and squirt guns. economist acknowledge the multiple uses of water when they point out that
water is a good with many alternatives uses at the margin
wealth consists ultimately of
what ever people value
suppose you hear professor 1.m. dismal say, there is no substitute fro carefully reading your textbook. in the real world students
will often find what they believe are useful substitutes for reading the text.
the substitution of machines for labor
will proceed more rapidly in a society the more rapidly the cost of hiring workers rise
Test D from here
Test D form here
