exam 1 Econ
If QD = 0 = 2,500−20P, then P=
$125
Suppose the price of a bottle of orange juice rises to $1.50. Once the price of a bottle of orange juice rises to $1.50, the total consumer surplus received by these consumers is
$4.5
If the price of a bottle of orange juice is $0.75, the total consumer surplus received by these consumers is
$7
The diagram to the right shows a hypothetical demand curve for apples. The slope of this curve is
-0.88
The percentage change in auto sales from 2013 to 2014 is equal to
0%
What fraction of the marbles are red?
0.14
In the six months following the Japanese earthquake and tsunami in 2011, production of automobiles in Japan declined by 20 percent.
1
What fraction of the marbles are yellow?
10/44
What percentage of the marbles are blue?
15.9%
What is the equilibrium price of houses?
150,000
workers 0, 1, 2, 3, 4, 5 output 0, 24, 36, 42, 45, 47 What is the marginal revenue product of the second worker? The second worker's marginal revenue product is
1800
The diagram to the right illustrates a hypothetical demand curve representing the relationship between price (in dollars per unit) and quantity (in 1,000s of units per unit of time). Total revenue is $
1925
The percentage change in real GDP from 2016 to 2017=
2.2%
and the equilibrium price is per gallon.
2.50
Assume the demand curve for Pepsi passes through the following two points. Calculate the total revenue at this price of $1.00. Revenue=
200,000
Consider the demand curve illustrated in the figure to the right. Suppose at a price of $5 per unit, a firm's corresponding revenue is represented by the green shaded area. What is the firm's revenue? The firm's revenue equals $
2500
The success of Nike and Adidas athletic shoes leads more firms to begin producing athletic shoes.
3
The marginal revenue product of labor (MRPL) for an employer is shown in the figure to the right. Suppose the market wage is $12.00 per hour. How many hours of labor should the employer hire? The employer should hire ___ hours of labor.
4
To take advantage of high prices for snow shovels during a snowy winter, Alexander Shovels, Inc., decides to increase output.
4
The equilibrium quantity of gasoline is million gallons
5.00
Economists often are interested in percentage change from one period to the next. The percentage rate of change of gross domestic product (GDP) is an important macroeconomic variable. If in 2010 GDP was $11,150 billion dollars, and GDP increased to $11,826 billion in 2011, what is the growth rate of the U.S. economy in 2011?
6.1%
The bar graph to the right illustrates hypothetical data for the market share for the United States automobile market. The percentage of the U.S. market that U.S. auto firms control is
60%
Assume the figure to the right illustrates the market for houses for sale in a small city. Suppose the market price of houses is $225,000. How large will the resulting surplus be? At a price of $225,000, there will be ____ surplus houses.
600
The pie chart illustrates hypothetical data for the market share for the United States automobile market. The percentage of the U.S. market that U.S. auto firms control is
65%
In your economics class, you scored a 70 on the first quiz, a 83 on the second quiz, and an 82 on the third quiz. Your average quiz grade is
78.3
Frank Gunter owns an apple orchard. He employs 45 apple pickers and pays them $8 per hour to pick apples, which he sells for $2.00 per box. If Frank is maximizing profits, what is the marginal revenue product of the last worker he hired? What is that worker's marginal product? Marginal revenue product of the last worker= Marginal product of the last worker=
8, 4
The opportunity cost of the student-athlete returning to college next year is
900000
What is the area of the blue triangle shown in the figure? The area of the triangle=
9375
Indicate which of the following would cause a movement from point A to C.
A decrease in input prices. An increase in worker productivity.
Which of the following events would cause the supply curve to increase from S1 to S3?
A decrease in the price of inputs.
Indicate which of the following could cause a movement from point A to C.
A rise in vegetarianism. B. A fall in the number of buyers.
How does consumer surplus change as the equilibrium price of a good rises or falls?
As the price of a good rises, consumer surplus decreases and as the price of a good falls, consumer surplus increases
How does producer surplus change as the equilibrium price of a good rises or falls?
As the price of a good rises, producer surplus increases and as the price of a good falls, producer surplus decreases
Trade-offs force society to answer questions such as what goods and services will be produced, how will the goods and services be produced, and who will receive the goods and services produced. Which of the following countries has an economy where households and firms make these decisions?
Canada
he diagram to the right represents a demand curve for apples. The original demand curve is D1. If a factor other than price which affects demand changes, causing demand to increase, the resultant demand curve is represented by
D2
Which diagram represents the cancer-fighting drug? Why?
Figure 2, Market demand reflects the availability of few substitutes.
What are the two main categories of participants in markets?
Firms and households.
What effect will changes in labor supply have on the equilibrium wage and employment?
If the labor supply curve shifts to the left, then the equilibrium wage will rise and employment will fall .
Which of the following correctly explains the effect of a variable on the labor demand curve?
If the quantities of other inputs increase, then the labor demand curve will shift to the right.
If the labor demand curve shifts to the left and the labor supply curve remains unchanged, what will happen to the equilibrium wage and the equilibrium level of employment?
The equilibrium wage decreases and the equilibrium level of employment decreases .
If the labor supply curve shifts to the left and the labor demand curve remains unchanged, what will happen to the equilibrium wage and the equilibrium level of employment?
The equilibrium wage increases and the equilibrium level of employment decreases .
From the information in the table, can you determine whether this firm is a price taker or a price maker?
The firm is a price taker in the market for television sets and in the market for labor because it cannot affect the price of televisions or the wage.
Suppose that a large oil field is discovered in Michigan. By imposing a tax on the oil, the state government is able to eliminate the state income tax on wages. What is likely to be the effect on the labor supply curve in Michigan?
The quantity of labor supplied in Michigan will decrease if the income effect is larger than the substitution effect.
What is the circular-flow diagram and what does it illustrate?
The circular-flow diagram shows how households and firms are linked through product and factor markets.
McDonald's distributes $1.00 off coupons. This will cause
a movement along the demand curve for McDonald's Big Mac hamburgers.
In the diagram to the right, when demand decreases, _____ develops at the original price.
a surplus
In the diagram, when supply increases, ____develops at the original price. Equilibrium price will ___and equilibrium quantity will ___as a new equilibrium is established.
a surplus fall, rise
Producer surplus is equal to the area
above the supply curve and below the price for the units produced and sold.
When economists speak of a surplus, they mean a situation in which
all of the above.
grading infuses everything that happens in the classroom." They also argue that grading "needs to be acknowledged and managed from the first moment that an instructor begins planning a class." Source: Barbara E. Walvoord and Virginia Johnson Anderson, Effective Grading: A Tool for Learning and Assessment in College, 2nd edition, San Francisco: Jossey-Bass, 2010, p. 1. Part 2 The grading system used by a teacher can affect the incentives of students to learn the course material by
altering the payoffs to achieving success on the various components of the course.
Imagine that the curves shown in the accompanying figure represent two demand curves for traditional wings (basket of six) at Buffalo Wild Wings. Further assume that wings are a normal good. The movement from point A to B on D1 is caused by
an increase in the price of baskets of traditional wings.
Suppose that the curves in the figure to the right represent two supply curves for traditional wings (basket of six) at Buffalo Wild Wings. The movement from point A to B on S1 is caused by
an increase in the price of baskets of traditional wings.
Now suppose the fired female financial advisors seek jobs at another financial institution (financial institution B). Financial institution B will
be able to charge lower prices
Are salaries determined by the importance of the work being done? If not, what are they determined by? Salaries are determined
by the marginal revenue product of the last worker hired and the supply of labor.
On the diagram to the right, a movement from A to B represents a
change in quantity supplied.
if teachers put too much weight in the grading scale on a certain part of the course, like readings outside the textbook, students might respond by ______other parts of the course.
de-emphasizing
The price of fries increases due to a potato shortage. This will
decrease the demand for McDonald's Big Mac hamburgers.
Use the line drawing tool to draw a supply line shifting to the right. Label this line 'S2'. With this shift, equilibrium price will ___ and equilibrium quantity will ____
decrease, increase
After World War II in 1945, the United States experienced a "baby boom" as birthrates rose and remained high through the early 1960s. In 2011, the first members of the baby boom generation became older than 65. What effect will this have on the market for doctors? As the first baby boomers become older than 65, the
demand curve for doctors will shift to the right
State whether each of the following events will result in a movement along the demand curve for McDonald's Big Mac hamburgers or whether it will cause the curve to shift. The price of Burger King's Whopper hamburger declines. This will cause
demand for McDonald's Big Mac hamburgers to decrease.
The U.S. economy enters a period of rapid growth in incomes. This will cause
demand for McDonald's Big Mac hamburgers to shift to the left if they are inferior goods.
Do you agree? Shouldn't a baseball player with a particular level of ability be worth the same to every team? Briefly explain. What a baseball player is worth
depends on his marginal product and the price his output sells for, the latter of which is different for each team.
If the market price 'Pmkt' is equal to the price 'P0', then quantity supplied is _____ quantity demanded and the market is in____
equal to, equilibrium
To reach an equilibrium, the price of rugs in this market must
fall
Equilibrium price will ___and equilibrium quantity will ____as a new equilibrium is established.
fall, fall (same as photo on card 66)
In economics, the term capital refers to
goods used to produce other goods.
Microeconomics is most likely to include the study of
household choices.
Which participants are of greatest importance in determining what goods and services are produced?
households
In this example, consuming additional movies ____the law of diminishing marginal utility.
illustrates
In the circular-flow diagram showing how a market system works,
income flows to households through factor markets.
Suppose the price of a substitute to LCD televisions rises. What effect will this have on the market equilibrium for LCD TVs? The equilibrium price of LCD TVs will
increase and the equilibrium quantity will increase.
With this shift, equilibrium price will ___and equilibrium quantity will ____
increase, increase
As a result of financial institution A's discrimination, the equilibrium wage for financial advisors at financial institution A
increases
Teachers often wish that students came to class prepared having read the upcoming material. A teacher could design the grading system to motivate students to come to class prepared by _____the grade weight assigned to being prepared.
increasing
workers 0, 1, 2, 3, 4, 5 output 0, 24, 36, 42, 45, 47 Is the firm experiencing the effects predicted by the law of diminishing returns The firm is experiencing diminishing returns.
is
Suppose Sony makes PlayStation 3 using labor. In what way is labor a derived demand? Labor for Sony to make PlayStation 3 is a derived demand because
it depends on consumer demand for PlayStation 3.
As a result of new firms entering the MP3 player market, the new equilibrium price will be ____and the new equilibrium quantity will be ____
lower, higher
Examining how consumers react to changes in product prices is most likely an issue in
microeconomics
Is the relationship between the price of pies and the number of pies Jacob buys a positive relationship or a negative relationship?
negative
Suppose an analyst evaluates whether it is a bad idea to pass minimum wage laws. This is an example of
normative analysis
The diagram to the right illustrates a supply curve. As with all supply curves, this curve's slope is
positive
Canada has a market economy. As such, Canada's economy (relative to centrally planned economies) tends to result in
productive efficiency and allocative efficiency but not necessarily equity.
In the diagram to the right, when the price is $45 per player, the amount of the____ is___ million players per month.
shortage, 14
Suppose instead that the price of LCD TVs is $800.00. This will result in a ____, which will place ____pressure on the price.
shortage, upward
Given the changes to Medicare, if the marginal benefit of offering an additional bed is $2,000 and the marginal cost is $8,000 per bed, then the corporation _____offer additional beds.
should not
Suppose the market price of rugs is $1,750. At a price of $1,750, there will be a ____of rugs.
surplus
If instead the market price were $3.25, then there would be a___of __ million gallons.
surplus, 3
Consumer surplus is
the difference between the highest price a consumer is willing to pay and the price the consumer actually pays.
Producer surplus is
the difference between the lowest price a firm would be willing to accept and the price it actually receives.
This percentage change in real GDP is also known as
the economic growth rate.
Why are major league baseball players on average paid substantially more than college professors? Explain. Major league baseball players are paid more than college professors because
the marginal revenue product of major league baseball players is high relative to college professors.
Suppose instead that the demand curve shifts to the right. Then, relative to the initial market equilibrium,
the new equilibrium price would be higher and the new equilibrium quantity would be higher.
What are the three most important variables that cause the market supply curve for labor to shift? The supply curve for labor shifts with changes in
the population, demographics, and opportunities in other labor markets.
Consider the market for Apple iPods. Assume the market is perfectly competitive and at a market-clearing equilibrium. What area represents consumer surplus? What area represents producer surplus? Consumer surplus is equal to the area
under the demand curve and above the price for the units consumed.
If the price of a bottle of orange juice is $0.75, then consumer surplus is an amount equal to the area
under the demand curve and above the $0.75 price for each individual who buys and consumes orange juice.
If the price of a bottle of orange juice is $1.50, then consumer surplus is an amount equal to the area
under the demand curve and above the $1.50 price for each individual who buys and consumes orange juice.
If the workers in the dangerous factory, absent the safety law, experience cognitive dissonance, then they ______the true risk of their job.
underestimate
Suppose workers have the option of working in a dangerous factory or a safe factory. Both jobs require the same productive characteristics, such as education and training. Given compensating differentials, the safety law
would not necessarily make workers in the dangerous factory better off because it would lower their wages.
Which of the following shows a negative nonlinear relationship?
y= 27/x
On the fourth quiz, you scored an 83. Did the fourth quiz raise your average?
yes
