Econ
"If I didn't have class tonight, I would save the $4 campus parking fee and spend four hours at work where I earn $10 per hour." The opportunity cost of attending class this evening is:
$44
Which of the following is a good subject to a price floor?
Hourly Wage
Which of the following statements best represents the law of demand?
If the price of sports shoes increases, Bella will purchase fewer pairs per year.
A market is most efficient when
Social or economic surplus is maximized
Which of the following events would increase the demand for cruise vacations?
The popularity of cruises rises after a successful marketing campaign.
The supply of new houses in Houston is best described as...
The quantity of new houses that builders are willing and able to build at various prices in a given period of time.
Consider the market for cheese. If the price of milk increases, what will be the consequences?
The supply of cheese would fall.
After widespread press reports about the dangers of contracting "mad cow disease" by consuming beef from Canada, the likely economic effect on the U.S. demand curve for beef from Canada is:
a shift of the demand curve for beef to the left.
The demand curve for a typical good has a(n):
negative slope because some consumers switch to other goods as the price rises.
The downward slope of the demand curve again illustrates the pattern that as _____________ rises, ______________ decreases.
price and quantity demanded
If new manufacturers enter the computer industry, then (ceteris paribus):
supply curve shifts right
Economics
the study of how humans make choices under conditions of scarcity
When quantity demanded decreases in response to a change in price:
there is a movement up along the demand curve.
Scarcity exists because of:
unlimited wants and limited resources
Consider a market with an equilibrium price of $10. If the government imposes a price ceiling of $8, other things equal, the result will be as follow
A shortage will occur because the price ceiling is below the equilibrium price.
Consider a market with an equilibrium price of $10. If the government imposes a price ceiling of $8, other things equal, the result will be as follow:
A shortage will occur because the price ceiling is below the equilibrium price.
Andy views beer and pizza as complements to one another. If the price of pizza decreases, economists would expect:
Andy's demand for beer to increase.
The demand and supply model demonstrates that prices
Are set by the interaction between supply and demand
Which of the following best characterizes the circular flow of income?
Businesses buy resources from households, and households use their income from the sale of resources to buy goods and services from businesses.
In countries like _____________ the command economy predominates.
Cuba and North Korea
Globalization
The trend in which buying and selling in markets have increasingly crossed national borders
division of labor
The way in which different workers divide required tasks to produce a good or service
Why might the government impose a price ceiling on a particular good?
To keep the price affordable
The market equilibrium for milk in your city can best be described as follows
When the demand and supply of milk intersect, at a price where the quantity demanded and supplied of milk are the same
The market equilibrium for milk in your city can best be described as follows:
When the demand and supply of milk intersect, at a price where the quantity demanded and supplied of milk are the same
Consider the relationship between supply and demand. When might a seller increase the price of their product?
When the demand for their product is high
command economy
an economy where economic decisions are passed down from government authority and where resources are owned by the government
Which of the following best denotes the reason for the existence of substantial black markets?
command economy
Fiscal policy
economic policies that involve government spending and taxes
Which of the following is generally accepted as a valid criticism of the production of useful goods and services?
environmental pollution
If the price is below the equilibrium level, then the quantity demanded will exceed the quantity supplied. This is known as ________________.
excess demand
Exports
goods produced domestically and sold abroad
In a command economy, the __________ either makes most economic decisions itself or at least strongly influences how the decisions are made.
government
The opportunity cost of an action
is a subjective valuation that can be determined only by the individual who chooses the action.
Most real-world choices aren't about getting all of one thing or another, instead, most choices involve _________________, which involves comparing the benefits and costs of choosing a little more or a little less of a good.
marginal analysis
The marginal benefit of a slice of pizza is the:
maximum amount that a consumer is willing to pay for the slice.