MACROECO
which of the following is not a factor that can shift the supply curve
change in tastes
More oranges are grown in Florida than North Dakota because Florida's warm climate gives it a ________ advantage in growing oranges.
comparative advantage
If the price of Good A increases and this leads to a decrease in demand for Good B, these two goods must be
complements
if income increases and as a result demand for a good decreases, this good must be a(n)________ good
inferior
The equilibrium price is also referred to as the
market clearing price
the highest valued alternative you forego or sacrifice to do something else is known as:
opportunity cost
the federal reserve seeks to maintain________________
price stability
the idea of having less and how to deal with having less refers to:
scarcity
refer to the accompanying graph if consumers have a decrease in income, we would assume that the demand curve for an inferior good would:
shift from D1 to D2
when market price is below equilibrium price there will be a ________________
shortage because quantity demanded exceeds quantity supplied
if the price of this good is $2.00 there would be a __________ of _________ units
shortage; 30
Inflation is measured by the percentage change in
the Consumer Price Index (CPI)
Pepsi and Coke are considered substitute goods. Because of this, one would predict that, holding all else constant, if the price of Pepsi increases, we would see:
the demand curve for coke shift to the right
If the supply curve decreases while the demand curve is held constant, what will be the result in terms of the new equilibrium price and quantity?
the equilibrium price increases while quantity decreases
suppose there is a shortage in the market for avocados. Assuming a competitive and unrestrained market, what happens over time
the price of avocados will rise, and the market will eventually reach equilibrium
increase in supply is represented graphically by ____________
the supply curve shifting to the right
referring to the below chart, at a price of $15 _______________
there is a surplus
the law of supply implies that the supply curve will be
upward sloping
a________ is a self imposed limit on the quantity of exports
voluntary export restriction
At the equilibrium price
Quantity demanded and Quantity supplied are equal
Net Exports (NX) is equal to
exports minus imports
the four phases of the business cycle are trough, peak, depression, and recovery
false
there are _________ phases of the business cycle
four
inflation refers to an aggregate price level that is ___________
increasing
In the following chart, what is the equilibrium price and quantity
$10 and 500 pounds
If the planet of Nevarro utilizes all of their resources to make spaceships, they can make 4,000 spaceships per year. If they instead utilize all of their resources to make robots, they can make 12,000 per year. What is the opportunity cost of making a robot in Tatooine
1/3rd of a spaceship
Assume that the market for nachos has only two suppliers: Firm 1 and Firm 2. According to this table, if the price of nachos is $6, market supply will be:
10 nachos
during which period was the economy in a contraction
2001-2005
If the planet of Nevarro utilizes all of their resources to make spaceships, they can make 4,000 spaceships per year. If they instead utilize all of their resources to make robots, they can make 12,000 per year. What is the opportunity cost of making a spaceship in Nevarro
3 robots
a recession is defined as an economic contraction lasting at least
6 months
Which of the following are positive statements
Americans with a higher level of educational attainment earn more income, on average
If the planet of Tatooine utilizes all of their resources to make spaceships, they can make 2,500 spaceships per year. If they instead utilize all of their resources to make robots, they can make 10,000 per year. If the planet of Nevarro utilizes all of their resources to make spaceships, they can make 4,000 spaceships per year. If they instead utilize all of their resources to make robots, they can make 12,000 per year. Which statement is true?
Navarro has an absolute advantage in producing both spaceships and robots
If the planet of Tatooine utilizes all of their resources to make spaceships, they can make 2,500 spaceships per year. If they instead utilize all of their resources to make robots, they can make 10,000 per year. If the planet of Nevarro utilizes all of their resources to make spaceships, they can make 4,000 spaceships per year. If they instead utilize all of their resources to make robots, they can make 12,000 per year. Which statement is true?
Nevarro has a comparative advantage in producing spaceships and Tatooine has a comparative advantage in producing robots
Powerade and Gatorade are substitutes for each other. If the price of Gatorade increases, what is the result in the market for Powerade
The demand for Powerade increases
The phrase the "dismal science" is attributed too?
Thomas Robert Malthus
hot dogs and got dog buns are complementary goods. therefore, when the price hot dogs goes up, what happens in the market for hotdog buns?
decrease in demand
if the price of milk increases from $3.99 to $5.99 per gallon, this will cause a
decrease in quantity demanded
when the price changes from P1 to P2, we will see a(n)
decrease in quantity supplied from q1 to q2
when the supply curve shifts to the left, this represents a
decrease in supply
Typically during the recession phase fo the business cycle, inflation___________and wages__________
decreases; decreases
deflation refers to an aggregate price level that is_____________
decreasing
when the dollar value of imports exceeds the dollar value of exports, the balance of trade is in a
deficit
comparative advantage emerges because of the presence of
differing opportunity costs
The law of demand implies that the demand curve will be
downward sloping
If both the demand and supply curves increase, what will be the result in terms of the new equilibrium price and quantity
equilibrium quantity increases but the impact on equilibrium price is indeterminate