Macro - Chapter 3

Which of the following are examples are:

- a local gas station -NYSE - Amazon - pay to play online gaming site

demand schedule

- a table showing the quantities of a good a consumer is willing and able to buy at alternative prices in a given time period, ceteris paribus

which of the following are determinants of demand?

- consumer taxes -consumer expectations - consumer income -prices of related goods -number of buyers

Surplus

a surplus is also known as an excess of....

government provided goods an services are not free because

- consumers and businesses pay taxes to receive goods and services - a cost is borne by society is utilizing resources to produce any good or services

from an economic perspective, which of the following are true of a market?

- it is a place where buyers and sellers interact in their desire to buy and sell a good or service - it is a virtual and or physical institution or space

price ceiling in the market for human organs would result in...

- lost lives - shortage of organs

which of the following are determinants of supply

- subsidies - taxes

international participants participant in the product market by

- supplying imports - demanding exports

international participants participate in the factor market by

- supplying resources -demanding resources

quantity

- the interaction between buyers and sellers determines equilibrium price and equilibrium ..

which of the following scenarios illustrate the relationship between a good and its complement ?

- when the price of maple syrup increases, the demand for pancakes decreases - when the price of cars decrease the demand for gasoline increases

In the supply and demand model, quantity demanded is illustrated on the vertical axis, while price is illustrated on the horizontal axis

False

The three man decision that must be address by an economic system include what goods are to be produced, who will produce them and where they will be produced.

False: - an economic system has to determine who, what and how.

If there is a shift of the demand curve or a shift of the supply curve, it will not disturb the equilibrium price and quantity

False: - a shift of the curves alone or simultaneously will create a new point of intersection between both curves, this establishing a new equilibrium

quantity demanded; demanded

a change in .... refers to a movement along the demand curve in response to changes in the price of a good or service, whereas a change in .... refers to a shift of the demand curve leftward or rightward in response to anything other than changes in the price of a good or services.

Other things equal, the fundamental characteristic of supply is:

as price falls, the quantity supplied falls

shortage; surplus

at equilibrium price, there is neither a market.....nor a market.... because the quantity demanded by consumers at a specific price is identical to the quantity supplied at that same price

the equilibrium price will ..... whenever the supply or demand curve shifts

change

demand

consumption of a product

What:

decisions related to the mix ( quantity and type) of goods and services to make available in a given economy.

How:

decisions related to the mix of factor inputs (land, labor, capital) used to produce goods and services

for whom:

decisions related to who is going to consumer the goods and services provided

A table showing the quantities of a good consumer is willing and able to buy at alternative prices in a given time period, ceteris paribus is a _____ schedule

demand

demand decrease and supply stays constant

equilibrium price falls and equilibrium quantity falls

supply increase and demand stays constant:

equilibrium price falls and equilibrium quantity rises

demand decreases and supply increases

equilibrium price falls and the change in quantity is indeterminate

if an increase in supply is greater than an increase demand, the equilibrium price will

fall

A shift leftward: decrease

in supply while holding demand constant results in an increase in equilibrium price, but a decrease in equilibrium quantity.

when consumers purchase a good or service , they do so in order to...... their level of utility or satisfaction

increase

market supply

is a schedule or curve showing the various amounts of product that producers are willing and able to make available for sale at each possible price during a specific period.

the equilibrium price where the quantity demanded equals the quantity supplied is otherwise known as...

market clearing price

Due to scarce resource, every individual, whether rich or poor is faced with ______ cost when choosing to produce or consume more of one good than another

opportunity

supply:

refers to the production of a product

equilibrium price and quantity

reflect a compromise between buyers and sellers.

the demand curve

shows the quantities of a product that will be purchased at various possible prices, other things equal.

upward sloping curve

supply curve

market supply

the ability and willingness to sell specific quantities of a good at alternative prices in a given time period, ceteris paribus.

supply increases and demand increases:

the change in equilibrium price is indeterminate and equilibrium quantity rises

purchase; sell

the function of business in the circular flow model is to..... factors and .... products

profit

the goals of producers is to maximize

the participants involved in the circular flow model are

the government, consumers, businesses and international participants

a consumers willingness to purchase in a market must be supported by the ability to make the purchase as evidenced by:

the necessary income

the market mechanism

the use of market prices and sales to signal desired outputs ( or resource allocations)