macro-economics02
what are other shiffters in supply
technology, competition, future prices
what is quantity demand ?
the amount you buy at a given price. associated with a particular point, along the curve. from point a to b. the only thing that effects quanity demanded is prize. EX: car dealerships prices by 10 percent.s the quantity of a commodity that people are willing to buy at a particular price at a particular point of time.
what is the biggest shiffter of supply
the cost of production inmputs
what is the solutions to scarcity problems?
unlimited money and unlimited time.
what would we do without unlimited time and money?
we would face trade-offs?
what is quality supplied
when price changes there is a change in quality supplied. movement along the supply curve.increases in prices causes increase in quantity supplied. we know it quantity supplied because of the change of the price. we moved along the curve.
What is supply?
whole new supply curve. get a new supply curve. prize did not change. for some reason other than the prize producers were willing to produce more of the good than they were willing to produce before. a whole new supply curve. there is No change in prize. prize does not change, but s supply curve moves.
which equation represents the relationship between GDP and four major expenditure components ?
y=c+I+G+nx
do prices and quantity supplied move in the same direction
yes
what is an example of assumption 3 : ''more decisions involve doing a little more or less of something" what is the marginal cost and and marginal benefit.
your boss asks you to stay for an extra hour of work. what is the marginal cost? your at work, your doing nothing else what is the marginal benefit? you might get paid extra money and of course your reputation.
when measuring changes in the cost of living for the typical consumer, which statistic is most appropriate? a. gdp deflator b. retail price index c. consumer expenditure survey d. consumer price index
consumer price index
what is market equilibrium
consumers and producers interacting in a marketplace and they reach a price/quantity combination. There is no pressure to change.
suppose that an individual recently lost her job at a grocery store, after the store installed self-check out lines. she discovers that the only job currently available in the grocery industry are for programmers and there are no openings because they are less needed. the individual decides to return to school for a computer science degree. what is the best classification of her unemployment status? a. cyclically unemployed b frictionally unemployed c.seasonally unemployed d structurally unemployed
d structurally unemployed
Real gdp is able to deal with the problem inflation creates when using nominal GDP. How? a.prices changes are separate from quantity changes when calculating real GDP b. base year prices are applied to the value of goods and services in all years when calculating real GDP. c. real GDP calculations keep prices constant, so any changes, in real GDP is from the change in the quantity of production. d. all the above
d. all the above a.prices changes are separate from quantity changes when calculating real GDP b. base year prices are applied to the value of goods and services in all years when calculating real GDP. c. real GDP calculations keep prices constant, so any changes, in real GDP is from the change in the quantity of production.
how do we calculate the unemployment rate
# of unemployed/labor force x 100.
how do break down the economy
1. consumption (c) ; purchases by household 2. private investments (i); firm or business, 3. government purchases (g); purchases by gov. 4. net exports(nx); purchases by foreigners
Explain the difference between a change in supply and a change in the quantity supplied. A.A change in supply is caused by a variables other than price and a change in quantity supplied is caused by a change in price. B.A change in supply is caused by a change in quantity supplied, but a change in supply does not cause a change quantity supplied. C. A change in supply is determined by how a firm produces a product and quantity supplied is determined by how much a firm is willing to sell. D. A change in supply is when there is a movement along the supply curve and a change in the quantity supplied is seen a shift in the entire curve.
A .A change in supply is caused by a variables other than price and a change in quantity supplied is caused by a change in price.
the price of a Toyota Prius hybrid decreases. assuming new prius consumers used to have gas-guzzling trucks, this will cause? A. decrease in the demand for gasoline B. an increase in the demand for gasoline C. a decrease in the quantity demanded for gasoline D.an in the quantity demanded of gasoline
A. a decrease in the demand for gasoline
The equilibrium quantity of gasoline is ______ million gallons (enter a numeric response using a real number rounded to two decimal places). A. 4 B. 5 C. 6 D. 7 https://ilearn.ucr.edu/bbcswebdav/pid-3293581-dt-content-rid-28227640_1/xid-28227640_1
B. 5
You are examining the market for the newest iPhone, iPhone X. Samsung comes out with a new phone, the Galaxy S9, that has different features than the iPhone X. What is the impact of the release of the Galaxy S9 phone on the market for iPhone X? A Prices increase and the amount bought/sold increase B Prices decrease and the amount bought/sold increase C Prices decrease and the amount bought/sold decrease D Prices increase and the amount bought/sold decrease
C Prices decrease and the amount bought/sold decrease
The prices of a Toyota Prius hybrid decreases. this will cause? A. demand for Prius to increase B. demand for Prius to decrease C. quantity demanded of Prius to increase D. quality demanded of Pruis to decrease
C. the quantity demanded of Prius to decrease
Continue to consider the 4K Television Market that has decreasing production costs and more consumers watching programs on smartphones, tablets and laptops. Where is the new equilibrium quantity located? A.Between points E & D B.Between points B & C C.Between points B & D D.Between points A & F https://ilearn.ucr.edu/bbcswebdav/pid-3293581-dt-content-rid-28227638_1/xid-28227638_1
C.Between points B & D
From the list below, select the variable that will cause the supply curve to shift: A.Prices of related goods B.Population and demographics C.The cost of raw materials D.Consumer income
C.The cost of raw materials.... why? because the cost of any factor of production—labor, raw materials, equipment—decreases, the quantity that producers are willing (and able) to supply at a given price increases. ... Therefore, a decrease in producers' costs will increase the supply.
In the past 5 years, the cost of producing 4K televisions has decreased. At the same time, many consumers are opting to watch television programs on their smartphones, tablets or laptops. Considering these two facts, assess the following claim: "The price of 4K TVs are decreasing, but it is not clear whether the quantity of 4K televisions bought and sold have increased or decreased." A.The statement is incorrect because when there is an increase in supply and a decrease in demand, the new equilibrium price and quantity are unknown. B.The statement is incorrect because when there is an increase in supply and a decrease in demand, the new equilibrium quantity is known, but the new price is unknown. C.The statement is correct because when there is an increase in supply and a decrease in demand, the new equilibrium price is known, but the new quantity is unknown. D.The statement is correct because when there is an increase in supply and a decrease in demand, the new equilibrium quantity is unknown, but the new price is unknown.
C.The statement is correct because when there is an increase in supply and a decrease in demand, the new equilibrium price is known, but the new quantity is unknown.
You are examining the market for the newest iPhone, iPhone X. You learn that the cost of batteries for the iPhone just increased. What is the impact of the more expensive battery on the market for iPhone X? A Prices increase and the amount bought/sold increase B Prices decrease and the amount bought/sold increase C Prices decrease and the amount bought/sold decrease D Prices increase and the amount bought/sold decrease
D Prices increase and the amount bought/sold decrease
Consider the market for homes in Southern California to initially be in an equilibrium. The tax rate for households in California increases. Which panel best describes what will happen to the housing market? A. Panel A B. Panel B C. Panel C D. Panel D https://ilearn.ucr.edu/bbcswebdav/pid-3293581-dt-content-rid-28227637_1/xid-28227637_1
D panel d
when economists assume that people are rational they mean? A. economic incentives are irrelevant B. every choice made is the ideal choice C.total values, instead of marginal values are used to make a decision D. given the information that is available, the action taken is perceived to be the best possible choice?
D. given the information that is available, the action taken is perceived to be the best possible choice?
Which graph best represents what happens to the market for hotel rooms on the coast of Maine during their cold, long winter? A.Panel A, because more accommodations are available for travelers. B.Panel B, because hotels are converted to meeting spaces in the winter. C.Panel C, because the remaining visitors to Maine in the winter really want to be there. D.Panel D, because there are fewer people vacationing to Maine in the winter, compared to the summer. https://ilearn.ucr.edu/bbcswebdav/pid-3293581-dt-content-rid-28234522_1/xid-28234522_1
D.Panel D, because there are fewer people vacationing to Maine in the winter, compared to the summer.
Now consider that the tax rate for households in California increase AND the government lowers the tax rate for housing developers that are building new homes. Considering the aforementioned facts on a demand and supply graph, how will the equilibrium of homes change? (The numbers 1 and 2 DO NOT necessarily correspond to the starting and ending curves.) A.The equilibrium will be at A before the tax breaks and E after the tax breaks. B.The equilibrium will be at A before the tax breaks and C after the tax breaks. C.The equilibrium will be at B before the tax breaks and E after the tax breaks. D.The equilibrium will be at B before the tax breaks and C after the tax breaks. https://ilearn.ucr.edu/bbcswebdav/pid-3293581-dt-content-rid-28227639_1/xid-28227639_1
D.The equilibrium will be at B before the tax breaks and C after the tax breaks.
at a recent dinner with friends, they were stating that," when housing prices rise, demand decreases and fewer homes are bought." This statements is... A. true, decreasing the price of a good leads to an increase in demand, not quantity demanded. B. false, decreasing the price of a good leads to an increase in demand, not quantity demanded C.true, decreasing the price of a good leads to an increase in quantity demanded, not demand. D.false, decreasing the price of a good leads to an increase in quantity demanded, not demand
D.false, decreasing the price of a good leads to an increase in quantity demanded, not demand.
There are four graphs and four market scenarios, each of which would cause either a shift in the supply or demand for Pepsi. Match each scenario to the appropriate diagram. A decrease in the supply of Coke. A drop in average household income in the US from $42,000 to $41,000. An improvement in soft drink bottling technology. An increase in the price of sugar. 1.Panel C. 2.Panel D. 3.Panel A. 4.Panel B. https://ilearn.ucr.edu/bbcswebdav/pid-3293581-dt-content-rid-28227635_1/xid-28227635_1
Panel C. 2.Panel D. 3.Panel A. 4.Panel B.
what is a normal good?
a normal good is any good for which demand increases when income increases, i.e. with a positive income elasticity of demand. income rises, demand increases. income decreases, demand decreases
what is opportunity cost
What is given up when a choice is made
economics is the [x] that studies the choices that individuals, businesses, governments and entire societies make as they cope with scarcity and the [y] that influences and reconcile our choices.
X: social science y:incentives
what does GDP delator measure
a measure of how much nominal GDP changes are driven by price.
what is the definition of trade-off's
a trade-off involves a sacrifice that must be made to get a certain problem or experience. most preferred possible alternative. for example, 'Should I go out to dinner tonight, or would I rather save my money so I can go to the movies tomorrow?'Since your resources - such as time and money - are limited, you must choose how to best allocate them by making some trade-offs.
suppose that the economy enters into a recession and an individual looses his job as delivery packages for FedEx and cant find a new job. when the individual gets his job back at FedEx. what is the best classification for this time as an unemployed truck mechanic ? a. cyclical b frictional c seasonally d.structurally
a. cyclical
a house is built and sold in 2002. the house is resold in 2018. is the sale price of the house in 2018 included in gdp for 2018 a. no gdp for 2018 includes only production that occurs during 2018. b. no. dpp for 2018 includes on the market value of final goods. a house resold in 2018 is an intermediate good. c. yes, the value of the house is included in the investment category for 2018. d. yes. the value of the house is included in the consumption category for 2018
a. no gdp for 2018 includes only production that occurs during 2018.
consider the following statements about inflation and the general level of prices. which is not correct? a. prices tend to rise by the same amount every year. b the inflation rate is the change in prices from year-to-year. c. the general level of price can be thought of as the average price of goods and services in an economy. d.when there is inflation, there is a general rise in prices over time.
a. prices tend to rise by the same amount every year.
what is a demand curve?
all possible combinations of price plus quantity demand
what is the law of supply
an increase in price results in an increase in quantity supplied. as the product price goes up, quantity supplied goes up. as price goes down, quantity supplied goes down;
A student writes the following: "Increased production leads to a lower price, which in turn increases demand." This student must be referring to A.an increase in quantity demanded. B.an increase in demand. C.an increase in quantity supplied. D.an increase in supply.
an increase in quality demanded.
what is an inferior good?
an inferior good is a good whose demand decreases when consumer income rises (or demand rises when consumer income decreases), unlike normal goods, for which the opposite is observed. ex; top ramen, shacks,shoes. Cheap stuff
how do economists determine the best allocation(distribution) of resources?
assumption 1 (people are RATIONAL) - people use knowledge and information to determine the cost and benefits of a decision. examine a decision and weight its cost and benefits assumption 2- people respond to incentives. homework can be turned in over and over, without there being a penalty. direct incentive = 10 percent of grade. indirect incentive = exams are based off HW. assumption 3 - Optimal decisions are made at the margins. getting something in return for minimal effort. example staying after to work, to get more money. assumption 4 (opportunity cost)- what you give up to obtain something.
the bureau of labor statistics (bls) does not count discouraged workers or people who work part time, but prefer to work full time. if the bls considered those, individuals, the a. unemployed rate would decrease b. unemployment rate would increase c. the average unemployment rate would be 30 percent over the 10 years d. the unemployment rate would remain the same
b. unemployment rate would increase
In the video, more gallons of gasoline were consumed in the summer of 2016 than ever before, but prices were lower than they had been in a long time. Did the "gas demand hit an all-time high" A Yes, more gallons were bought, so demand must have increased B Yes, people drove more in 2016 than ever before C No, prices decreased while quantity increased, so supply must have increased D No, prices decreased while quantity increased, so demand must have decreased
c. No, prices decreased while quantity increased, so supply must have increased
inflation makes GDP a poor measure of the increase in total production from one year to the next. Why ? A. GDP measures productivity using quantity b. changes in nominal GDP can occur because there are changes in price or changes in quantities. C. the nominal gdp captures changes in price from year to year d. all of the above.
c. changes in nominal GDP can occur because there are changes in prices or changes in quantities.
the type of unemployment that leads to wide spread hardship for all unemployed individuals is a. frictional because people need to find a new job in the labor market b. structural because this type of unemployment requires training to acquire new job skill. c. cyclical and frictional because these two types are closely related d. cyclical because people have to wait for a recession to end
c. cyclical and frictional because these two types are closely related
you are told that the economy is at full employment. this means that the unemployment rate is a. equal to the cyclical unemployment minus frictional unemployment b zero c. the natural rate of unemployment d. bls rate of unemployment minus the natural rate of unemployment
c. the natural rate of unemployment
you just learned that the CPI in the united states reached 251 in august, 2018. the highest value ever recorded. a press released the BLS stated that the inflation in august, 2018 was relatively stable, 2.2 percent. is it possible for prices to be higher than ever, but inflammation to be stable. a. no, inflation measures changes in the cost of living b. no goods and services are more expensive and this is why cpi is so high c. yes, the cpi and inflation is measuring changes in the general level of prices, not the overall price level d.yes, low inflation means that goods and services are expensive
c. yes, the cpi and inflation is measuring changes in the general level of prices, not the overall price level.
at a party this weekend, you and friends are discussing that consumer price index. a friends who has not taken economics say, " your are telling me that the CPI in 2017 was 248. That isnt possible. there is no way the inflation rate was 148 percent in 2017'. the most appropriate response to this comment is a. i agree. a cpi of 248 is a 148% increase from 100, which is not impossible. b.i agree. a cpi is a 148% increase in pries, relative to the year base. the inflation i 2017 is then 148% c. i disagree. the inflation rate mirrors the unemployment rate. d. i disagree. the inflation rate is the percentage increase in the cpi from year-to- year, not the base year.
d. i disagree. the inflation rate is the percentage increase in the cpi from year-to- year, not the base year.
which of the following description is the standard (BLS) definition of the unemployment rate? a. number of unemployment divided by ( number of employed plus the labor force) x 100 b. number of unemployed divided by the total population x 100 c. number of unemployed divided by number of employed x100 d. number of unemployed divided by the labor force x100
d. number of unemployed divided by the labor force x100
would the services of a real estate agent who helped in the purchase of the used home in question 3 be included in DGP for 2008? a no. real estate services are intermediate goods and not counted towards GDP. b.no. the value of the house includes real estate services and is not included in GDP for 2018. c yes. real estate services are an investment by homebuyers d. yes. the dgp for 2018 includes final service, such as real estate services.
d. yes. the gdp for 2018 includes final services, such as a real estate agent.
what is economics?
economics is the study of how individuals, businesses and governments make the best decision given their scare resource.
what phrase most likely describes economics
economics is the study of people make decisions
what is an example of assumption 4: cost means "opportunity cost"
example : uc riverside wants to put $10 million into a lecture hall. opportunity cost=$10+. now if the lecture was not constructed, what would have happen? new dorms...lower tuition... computer give away.
what is the most common way to measure GDP?
expenditure approach.
what are the four types of unemployment
frictional, seasonal, structural, cyclical unemployment
what is a normal good?
goods that consumers demand more of when their incomes rise
how do we calculate the labor force ?
labor force= employed +unemployed
if prices change does the demand curve change
no
what happens when price changes from $3.50 to $2.50 ? does demand change
no
what is demand?
refers to how much (quantity) of a product or service is desired by buyers. s. For example, when buyers' incomes increase, the demand (not quantity demanded) for a normal product increases. Or when the price of a substitute product decreases, then the demand for the product in question decreases. Or when the number of buyers increases, the demand increases, and the price of the product increases. An increase in demand is illustrated in a graph by a rightward shift in the demand curve. prices never shifts the curve.
what is inflation?
the general increase in the level of goods and services. prize inflation.
the law stating that when changes in the price of a good and will lead to an opposite change in the quantity demanded, all else held constant.When the price of a product increases, the demand for the same product will fall."conditional on all else being equal, as the price of a good increases, quantity demanded decreases; conversely, as the price of a good decreases, quantity demanded increases"
the law of the demand states that ?
what changes the demand curve?
the price of related goods.price of teslas. imagine it goes down to 25,000 from 80,000 . the quantity demand will go up. the demand for gasoline will go down.
the gross domestic product is ?
the total value of all final goods and services produced for the market place during a given period, a nations border.
which of the followings best describes scarcity?
there are unlimited wants, but the available resources to satisfy those wants are limited.
