Macroeconomics Ch 1,2, and 3.
Lisa wants to take Saturday off to attend her niece's birthday party. To attend the party, she must miss a 4 hour shift at work where she makes $15 per hour. What is Lisa's opportunity cost of attending the party?
$60
True or false?When considering factors that shift supply curves, lower product taxes on producers will decrease supply. True False
False Lower product taxes will increase supply because taxes are treated as costs by firms.
True or false?If quantity supplied is 5 dozen apples and quantity demanded is 4 dozen apples, the market is in equilibrium. Yes that's right. Keep it up! True False
False
True or false?The law of diminishing returns states that as more variable inputs are added to production, the productivity of these inputs increases.
False
Use the demand schedule below to answer the question. True or False? As the price of pizza moves from $4 to $3, the quantity demanded of pizza will decrease. Price Quantity Demanded 1 10 2 8 3 6 4 4 5 2 Select the correct answer below: True False
False
True or false? If a price is set at $210, there is a shortage and there is downward pressure on the price to reach equilibrium. PriceQuantity DemandedQuantity Supplied $120 50 36 $150 40 40 $180 32 48 $210 28 56 $240 24 70
False At a price of $210, there is a surplus. Downward pressure on the price would occur to reach a lower equilibrium price and quantity.
In the circular flow, households are on the receiving end of payments for goods and services.
False In the circular flow, firms receive payment for the goods and services that they provide to the household.
China is currently on the tail end of a "demographic bulge" that will see unprecedented numbers of retirees and senior citizens over the next decade. You are the strategy coordinator of a major sporting goods company. The main products in your catalog are hiking equipment, diving gear, physical therapy equipment, and basketball equipment. Where would you expect the greatest increase in demand as the elderly and retiree population increases?
physical therapy equipment
Jeremy is studying the effects of income on the demand for Greek ceramics. If "ceteris paribus" is used, which factors would be held constant when studying the effects of changes in income? Select the two correct answers below. price of Italian ceramics demand for Greek sculptures income demand for Greek ceramics
price of Italian ceramics demand for Greek sculptures
What term describes the total number of units of a good or service consumers are willing to purchase at a given price? A. equilibrium quantity B. demand C. total quantity available D. quantity demanded
quantity demanded
The opportunity cost of producing one bushel of wheat in Canada is equal to 1/2 computer. The opportunity cost of producing one bushel of wheat in the U.S. is 2 computers. If these two countries specialize according to comparative advantage and then trade with each other, which of the following is an expected outcome? A. The U.S. will import wheat and export computers. B. Canada will import wheat and export computers. C. The U.S. will export computers and wheat. D. Canada will choose not to trade with the U.S. since it can produce both products at lower costs.
. The U.S. will import wheat and export computers.
If a family spends its entire budget in a given time frame, the family can afford either 15 movie nights or 8 restaurant meals. Assuming the family spends its entire budget on just these two goods, what is the opportunity cost of one movie night? (Round your answer to two decimal places.)
0.53 restaurant meals
If a family spends its entire budget in a given time frame, the family can afford either 14 outings or 24 household items. Assuming the family spends its entire budget on just these two things, what is the opportunity cost of one extra outing in the time frame? (Round your answer to two decimal places.)
1.71 Household items
If a family spends its entire budget in a given time frame, the family can afford either 120 sodas or 10 lbs of meat. Assuming the family spends its entire budget on just these two goods, what is the opportunity cost of one extra pound of meat in the time frame?
12 Sodas
.If demand decreases from D0 to D2, at the price of $20,000 what is the quantity demanded at the new demand curve, D2? The picture shows three demand graphs for the car industry. The x-axis shows quantity of cars from 8 million to 28 million. The y-axis shows price of cars from $10,000 to $28,000. Select the correct answer below: A. 13 (left of Point T) B. 20 (Point S) C. 14.4 (Point T) D. 18 (Point Q)
14.4 (Point T)
What is the opportunity cost of increasing the number of televisions produced by 4, moving from point B to point C?
2 computers
Suppose your marginal cost of making a peanut butter and jelly sandwich is constant at $10, but the marginal benefit of eating the sandwich decreases from $12 for one sandwich, to $10 for two sandwiches, to $8 for three sandwiches, to $6 for four sandwiches. How many sandwiches would you eat? Select the correct answer below: 1 sandwich 2 sandwiches 3 sandwiches 4 sandwiches
2 sandwiches
The price of each ride at the fair is $7. Your benefit associated with each ride decreases with each ride because you start to get dizzy. How many rides should you go on if your marginal benefit for each ride is as follows- first ride: $25, second ride: $18, third ride: $11, fourth ride: $4, fifth ride: $0? Select the correct answer below: A. 1 ride B. 2 rides C. 3 rides D. 4 rides E. 5 rides
3 rides.
If a family spends its entire budget in a given time frame, the family can afford either 56 servings of vegetables or 15 servings of meat. Assuming the family spends its entire budget on just these two items, what is the opportunity cost of one serving of vegetables in the time frame? (Round your answer to two decimal places.)
3.37 servings of meat
On a short road trip, if Mary spends her entire budget on gas and diner meals, Mary can afford either 35 gallons of gas or 7 diner meals. What is the opportunity cost of one diner meal?
5 gallons of gas.
Which of the following situations is best described by a PPF. Select the correct answer below: A. A country is deciding how to allocate resources between infrastructure projects and national defense. B. An individual is deciding between purchasing an ice-cream cone or a soda. C. A company is deciding how much to spend on inputs in order to maximize profits. D. An individual is choosing products to maximize utility.
A country is deciding how to allocate resources between infrastructure projects and national defense.
Which scenario below is an example of scarcity?
A factory has a large need for highly skilled workers, however, the majority of applicants do not have any work experience. Because the factory has a demand for highly skilled workers, but none exist in the area, there is a shortage of labor for these positions. Because we are able to create diamonds in a lab, they are no longer scarce. Similarly, fracking has increased the availability of natural gas which has lowered energy prices because it is not viewed as a scarce resource. There is no shortage of kittens in animal shelters.
Which points in the graph below demonstrate productive efficiency?
A, B, C, D, and F, only Points demonstrate productive efficiency if they are located on, rather than within, the PPF. This includes the intercept points.
Which of the following is not an example of scarcity? A. Amanda can play a song as many times as she likes with no additional cost to her. B. Because the number of trained doctors is limited, some people cannot find a doctor when they need one. c. Joey has to choose between buying a new motorcycle or buying a small boat, since he cannot afford to buy both. D. A small business owner has to subcontract a portion of work due to lack of time.
Amanda can play a song as many times as she likes with no additional cost to her.
Identify the two groups that do not interact in a circular flow diagram for a two-sector economy.
Exporters Importers
Lettuce and tomatoes are complements. Demonstrate the impact on the demand of tomatoes on the graph below if the price of lettuce falls. Shift the demand or supply curve in the appropriate direction.
Complements are goods that are purchased together. If the price of one good changes, that will affect the demand for the other good. In this case, because the price of lettuce falls, the demand for tomatoes increases.
Suppose that the government provides a subsidy on corn crops. Which of the following explains how corn farmers will react to the subsidy? . Corn farmers will begin to grow more corn. Corn farmers will grow less corn and more green beans. Corn farmers will continue to grow the same amount of corn because they will make more money from the subsidy. Corn farmers will reduce their supply of corn.
Corn farmers will begin to grow more corn.
True or false?A surplus is the result of a price set above the equilibrium price. When producers face a surplus, they are willing to increase production even further. This combination of higher quantity and higher price increases industry profits, which are beneficial to producers. Perfect. True False
False By definition a surplus is an excess of supply--that is, quantity demanded cannot match quantity supplied. Firms cannot earn profits from unsold inventory, while production is costly. Since producers cannot find enough buyers at this price, producers in a competitive market will want to cut price and production levels.
Which scenarios would be best represented by a budget constraint? There are two correct answers. A. The government of planet Mars is deciding whether it should focus on producing more spaceships or growing food in orbit. B. Finn has an allowance to spend on his dog. He must decide whether to spend the allowance on new doggy treats for $10 per bag or new water balls for $3 per ball. C. Narnia has resources that it can direct towards a combination of healthcare and education. D. Sam has received a $500 scholarship that he can use for books and tuition.
Finn has an allowance to spend on his dog. He must decide whether to spend the allowance on new doggy treats for $10 per bag or new water balls for $3 per ball. Sam has received a $500 scholarship that he can use for books and tuition.
In a circular flow diagram, who pays wages?
Firms
Which of the following is the best definition of the term economies of scale?
For many goods, as the level of production increases, the average cost of producing each individual unit declines.
Which of the following is not an example of scarcity? A. Due to a continuous drought in Cape Town, South Africa, the amount of water for families is limited. B. Crude oil was in short supply in the 1970s, leading to a quantity demanded of gasoline being greater than the quantity supplied. C. Home Depot offered a wage higher than the minimum wage resulting in an influx of job applications. D. Bee populations are on the decline due to disease, so some farmers have resorted to hand pollination of their fruits and vegetables.
Home Depot offered a wage higher than the minimum wage resulting in an influx of job applications.
What is the opportunity cost of owning a business?I. The economic profits that the business earnsII. The accounting profits that the business earnsIII. The profits that could be earned in another business using the same amount of resources
III only
Word leaks to consumers that a large sale will begin one week from today for a furniture store. As a result, the store's manager gives some employees the day off tomorrow in anticipation of weaker demand in the short term. Is this a wise move? Why? Yes that's right. Keep it up! It is a poor decision, since word of the sale will immediately increase demand. It is a good decision, since consumers will defer buying now in anticipation of the sale later. It is a poor decision, since expectations do not affect short-run demand. It is impossible to guess based on the available information.
It is a good decision, since consumers will defer buying now in anticipation of the sale later.
What is true of the product combination that satisfies allocative efficiency? Select the two correct answers below. Select all that apply: A. It is the combination of products that society most desires. B. It is one of many combinations of products that use all available resources. C, It is the combination of products that is most beneficial to the firms, but not buyers. D. It is a combination of products that is outside of the production possibilities frontier.
It is the combination of products that society most desires. It is one of many combinations of products that use all available resources.
According to this production possibilities frontier, why does P demonstrate productive efficiency? It uses all of society's available resources. It is more desired by society than any other attainable point. It results in the fewest number of trees. It is one of the many points that it is possible for society to attain.
It uses all of society's available resources. P demonstrates productive efficiency because it is on the production possibilities frontier, which signals that this country is using all of its available resources.
If producers and consumers agree on a market price, they have reached: a price above equilibrium price a price below equilibrium price the equilibrium price a price set by producers.
The equilibrium price
True or false?Marginal analysis compares total benefits and total costs to determine the optimal outcome or choice rather than how costs and benefits change from one option to another.
Marginal analysis involves comparing marginal benefits and marginal costs to determine the optimal outcome.
Which two explanations represent models in the study of economics?
Models simplify real world interactions for the purposes of illustration. Economic models are used to test theories.
Would a macroeconomist be interested in how individual consumers respond to an increase in taxes on gasoline?
No, this is the primary study area of a microeconomist. Macroeconomics is the study of larger economic forces. How a tax impacts the actions of individuals would be of interest to a microeconomist, a person who studies microeconomics.
Giovanni and Pedro make guitars. Their current rate of production is 2 guitars a week: each of them makes one guitar. How would production most likely be affected if Pedro made the frets and tuning pegs on the guitars, and Giovanni made the guitar bodies?
Production would be increased. When workers specialize, each is likely to become more efficient at the task each specializes in. As Giovanni and Pedro become more efficient at the production of guitars, they will produce more per week. Workers who specialize in certain tasks often learn to produce more quickly and with higher quality.
According to Adam Smith, specialization results in higher levels of output for all of the following reasons except: A. Specialization in a particular small job allows workers to focus on the parts of the production process where they have an advantage. B. Specialization allows businesses to take advantage of economies of scale. C. Specialization allows workers to experiment with different tasks to see which responsibilities make them happiest at work. D. who specialize in certain tasks often learn to produce more quickly and with higher quality.
Specialization allows workers to experiment with different tasks to see which responsibilities make them happiest at work.
You are responsible for setting prices of finished clothing items at a major textile manufacturer. In the past year the price of cotton, a critical input, has increased by 20%. What is the likely result? Supply of clothing will remain unchanged. The change in supply is unknown. Supply of clothing will increase. Supply of clothing will decrease.
Supply of clothing will decrease.
What is the reason the following statement is incorrect? The price of tuition at a specific university increased from what it was the previous year, but enrollment at the university still increased. This implies that the law of demand has been violated. The university is probably advertising, so its enrollment rates are naturally manipulated and don't follow the law of demand. The tuition prices have not been adjusted for inflation. The law of demand only holds in perfectly competitive markets. The ceteris paribus condition has been violated.
The ceteris paribus condition has been violated.
In which of the following cases is productive efficiency not satisfied? Assume we start at a point on the PPF between two products. A. The economy switches to producing less of one product without increasing the production of the other product. B. The economy switches to producing at the point of intersection of the PPF and the vertical axis. C. The economy switches to producing more of one product and less of the other product but remains on the PPF. D. The economy switches to producing at the point of intersection of the PPF and the horizontal axis.
The economy switches to producing less of one product without increasing the production of the other product. Productive efficiency means that, given the available inputs and technology, it is impossible to produce more of one good without decreasing the quantity that is produced of another good. All choices on the PPF are productively efficient. If an economy switches to producing less of one product without increasing the quantity produced of the other product, this is productively inefficient. More of the second product could be produced given the available inputs and technology.
True or false? If the Netherlands enjoys comparative advantage in the production of dairy products, it implies that the opportunity cost of producing dairy products in the Netherlands is greater than that of its trading partners.
The opportunity cost is lower in the country that has comparative advantage.
Given the supply schedule for pistachios, if the quantity supplied decreases from 36 to 30 pounds, what will happen to the price received by pistachio farmers? A. The price will go down by $2. .B. The price will stay the same. C. The price will go up because of the shortage of pistachios. D. The price will drop to $8 per pound.
The price will go down by $2.
Which of the following is the strongest definition of the term division of labor?
The production of a good or service is split up into separate tasks performed by different workers. Division of labor is the way in which the work required to produce a good or service is divided into tasks performed by different workers. For example, Mary is very detail oriented whereas Susan is very creative. When they work together on class assignments, Susan creates most material while Mary proofreads and makes sure they stay on task.
The table below shows the supply schedule for pounds of pistachios. As the price increases from $4 per pound to $6 per pound, how does quantity supplied change?
The quantity supplied increases from 12 to 18 pounds. The law of supply says that as the price increases, the quantity supplied will also increase. Thus as the price increases, the quantity supplied will increase from 12 to 18 pounds.
Many American car manufacturers are located in the Southeast. Due to hurricane season, the Southeast has gotten a significant amount of rain, causing vast flooding. How is the supply of cars impacted? A. The supply of cars does not change. B. The quantity supplied of cars decreases only at the equilibrium price. C. The supply of cars decreases. D. The quantity supplied of cars increases at every price.
The supply of cars decreases. Significant flooding in the Southeast may cause damage to factories or prevent workers from being able to get to work, resulting in a decrease in the supply of cars. This means that the quantity of cars supplied decreases at any given price.
Which type of economics is concerned with the individual components of an economy?
microeconomics
Identify one key takeaway from the Circular Flow Diagram. Select the correct answer below: A. Households often provide firms with capital for free. B. Households often receive freebies from firms. C. There are no free exchanges between firms and households. D. Households provide firms with goods.
There are no free exchanges between firms and households.
If there is a decrease in price for printers, what would we expect to happen to the demand for printer cartridges? There will be a decrease in demand for printer cartridges. There will be an increase in demand for printer cartridges. There will be no change in the demand for printer cartridges. There is not enough information.
There will be an increase in demand for printer cartridges.
n 2009, the worst recession in 80 years hit the United States, generally reducing household incomes. Despite this, profits and sales for certain enterprises such as McDonald's and Dollar General actually increased during this time. What is the most likely conclusion about the products sold by these stores? They are inferior goods. They are normal goods. They are sold below cost. They have upward-sloping demand curves.
They are inferior goods.
Which of the following characteristics is a fundamental similarity that nearly all demand curves share? A. They are curved. B. They slope upward from left to right. C. They slope downward from left to right. D. They are straight lines.
They slope downward from left to right.
True or false?A rise in the price of a substitute for olive oil will increase demand for olive oil. True False
True
True or false?According to the law of demand, changing the price of sweater vests will only affect the quantity demanded of sweater vests, not demand itself. True False
True
True or false?John says to his friend, "This concert is going to cost me $20 when I buy the ticket." His friend corrects him and says, "actually, this concert will cost you more than $20 since you have to miss work." His friend is referring to the opportunity cost.
True
A macroeconomist would be concerned with the following statement. "Two major hurricanes caused significant damage to the eastern seaboard and led to a fall in GDP and a rise in unemployment in the U.S. economy."
True Macroeconomists are concerned with issues such as growth as measured by changes in GDP.
True or false?A decrease in demand for inferior goods results from a rise in income. True False
True because inferior goods are usually cheaper substitutes purchased with lower incomes.
Which of these scenarios is true for a normal good? When a person's income falls, he/she will buy more of the good. When a person's income rises, he/she will buy more of the good. A person buys more of the good when its price is higher. When other similar products are available, a person buys less of the good.
When a person's income rises, he/she will buy more of the good.
Suppose you have a team of two workers. One is a baker and one is a chef. Should each worker specialize in what they do best or should each worker try to do everything from appetizer to dessert?
Workers who specialize in certain tasks can complete those tasks more quickly and with higher quality, so they should each specialize in their particular skill. When workers, such as a chef and a baker, focus on a particular skill they have developed through training, education, interests, or talents, they are more productive than if they produce a combination of things. Given this, they should specialize in their particular skill.
Taking into account ceteris paribus, which of the following factors of production will not impact the supply of corn? Select the correct answer below: a lack of farmers to plant corn seeds a powerful fertilizer to boost the amount of corn grown a decrease in the supply of tractors available to farmers. a disease killing potato plants
a disease killing potato plants
When considering factors that shift demand curves, which of the following will decrease the market demand for a product? Select the two correct answers below. a drop in the price of substitutes a rise in the price of complements a rise in income (for a normal good) a rise in the price of substitutes
a drop in the price of substitutes a rise in the price of complements
Choose the answer that best defines a substitute good. a good or service that is used because another is no longer in production a good or service that a consumer sees as the same or similar and can be used in place of another good or service a good or service that is better in quality than another good or service a good that is very often used in conjunction with another good or service
a good or service that a consumer sees as the same or similar and can be used in place of another good or service
Which of the following will impact the supply of a good? Well done! You got it right. an increase in the price of a similar good a government subsidy to the producers of the good the good becoming less popular an increase in income for consumers of the good
a government subsidy to the producers of the good
When considering factors that shift demand curves, all of the following will decrease demand except _______________. A. a drop in the price of substitutes B. a rise in income (for an inferior good) C. a rise in income (for a normal good) D. all of these factors decrease demand
a rise in income (for a normal good) A rise in income (for a normal good) will increase demand because people will have more money to spend. For normal goods, higher income causes greater demand at every price.
Which one of the following options will increase demand? a rise in the population likely to buy the good in question a drop in average income due to a recession a rise in the price of complements of the good in question discouraged buying based on future expectations
a rise in the population likely to buy the good in question A rise in the population likely to buy the good in question will increase demand for that good since more consumers in a market means a greater amount of the good will be sold.
Comparative advantage is a measure of _____. A. profitability B. advantage due to specialization C. opportunity cost maximization D. absolute efficiency in production
advantage due to specialization
Ryan is studying the effects of income on the demand for jewelry. Which factors are held constant when using the ceteris paribus assumption? income all factors affecting demand besides income all factors affecting demand demand
all factors affecting demand besides income
A student of macroeconomics would study which of the following concepts? Select the correct answer below: the number of unemployed people in an economy an inflationary increase in prices government deficits all of the above
all of the above
Economic theories and models can give us ideas about which of the following? Select the correct answer below: human behavior incentives the effects of government policies all of the above
all of the above
What are some potential examples of demand "shift factors"? A. income B. consumer tastes C. prices of related goods and services D. all of the above
all of the above
Which of the following factors would increase supply? lower taxes on the cost of inputs an increase in the number of producers improvements in technology that reduce firm costs all of the above
all of the above
In the context of observing how changes in price affect quantity demanded, the ceteris paribus assumption means that __________. price and quantity demanded are held constant all variables other than price and quantity demanded are held constant the law of demand is assumed to be true price and quantity supplied are held constant
all variables other than price and quantity demanded are held constant
Which of the following factors would not result in a change in the supply of automobiles? an increase in the price of air travel a decrease in the price of steel an increase in the price of glass all of these will result in changes in supply
an increase in the price of air travel
Which of the following cannot be an example of a pair of substitute goods? tea and coffee tablets and laptop computers computers and computer mouses coal and natural gas
computers and computer mouses
The difference between supply and quantity supplied is that "supply" refers to the _____________ and "quantity supplied" refers to the _____________. Select the correct answer below: curve; point on the curve point on the curve; curve supply schedule; curve curve; supply schedule
curve; point on the curve
The production possibilities frontier has a __________ due to the law of diminishing returns. Select the correct answer below: A. constant slope B. allocative shape C. efficient line D. curved shape
curved shape; the slope is different at various points on the PPF.
What term best describes the relationship between units of a good demanded across a range of prices? A. quantity demanded B. budget constraint C. demand schedule D. supply schedule
demand schedule
A production possibilities frontier
demonstrates the constraints that society faces in production.
Within economics, the theory of scarcity says that there are unlimited wants and a finite amount of resources. However, history has demonstrated the power of productivity to overcome the theory of scarcity. What is the economic practice responsible for overcoming scarcity? A. the practice of rationing economic goods by the government B. using meditation to get people to want less C. the survival of the fittest is how economics deals with scarcity D. division and specialization of labor, which is a theory of abundance
division and specialization of labor, which is a theory of abundance
When the tasks involved with producing a good or service are split up, it is called
division of labor
As an economic wizard, you know that a bad recession will strike next year. Which one of the following industries should you choose to invest in to weather out the recession? luxury cars dollar stores amusement parks casinos
dollar stores
When considering factors that shift supply curves, which of the following will increase supply? favorable natural conditions for production higher product taxes levied on producers decline in technology used for production lower taxes levied on producers
favorable natural conditions for production lower taxes levied on producers
Macroeconomics focuses on which of the following variables?
government spending the number of unemployed people in an economy
Which of the following factors will primarily affect the supply of bicycles? Note that rubber and aluminum are used to produce bicycles. higher prices for rubber a decrease in overall consumer income lower prices for aluminum a decrease in the price of scooters
higher prices for rubber lower prices for aluminum
If the price of indoor cycling classes increase by $10, we would expect the demand for fitness classes to _______________. This is because indoor cycling classes and fitness classes are ______________. increase; complements decrease; complements increase; substitutes decrease; substitutes
increase; substitutes
The division of labor may also be referred to as human specialization. Overall, it is beneficial to firms because it
increases output by enabling workers to take advantage of differences in their skills
A complementary good __________. can be used in place of another good is often consumed with another good is one whose demand decreases when income increases is usually also an inferior good
is often consumed with another good
As additional increments of marginal resources are added to either healthcare or education, the marginal benefit from those additional increments will decline. What do economists call this pattern?
law of diminishing returns
Use the chart below to fill in the blanks. At a price of $120 a ___________ exists. There will be a(n) _____________ pressure on the price to reach equilibrium. PriceQuantity DemandedQuantity Supplied $120 50 36 $150 40 40 $180 32 48 $210 28 56 $240 24 70
shortage; upward When quantity demanded is greater than quantity supplied, a shortage exists. When there is a shortage, there is an upward pressure on the price until it reaches equilibrium.
The demand curve for a normal good is ______________. sloped upwards sloped downwards horizontal vertical
sloped downwards
Assume Brandon can buy either 1 DVD for $20 or 3 CDs for $25. What is the opportunity cost if he decides to buy 3 CDs?
the lost opportunity to buy 1 DVD.
Opportunity cost is defined as ___________________________. Select the correct answer below: A. money that is already spent and should not be included in decision making B. all possible purchasing decisions within a given budget C. all possible supply and demand curves D. the measure of cost by what is given up in exchange for what is obtained
the measure of cost by what is given up in exchange for what is obtained
A nation's comparative advantage in the production of an item is determined by which country has already specialized in the production of the item the total and marginal costs of producing the item the opportunity cost of producing the item relative to a trading partner's opportunity cost the wage rates and other input costs
the opportunity cost of producing the item relative to a trading partner's opportunity cost.
When plotting a demand curve for crushed tomatoes, what is assumed to be constant according to ceteris paribus? Select the two correct answers below. the price of a can of crushed tomatoes the number of cans of crushed tomatoes demanded the price of a can of tomato sauce income
the price of a can of tomato sauce income
If we use "ceteris paribus" when plotting a demand curve for sneakers, what is assumed to be constant? (Select all that apply.) the price of sneakers the price of shoelaces the number of sneakers consumers income
the price of shoelaces consumers income
Assuming a market is currently at the equilibrium price and quantity, when a price ceiling is set below the equilibrium price, ______________. the quantity demanded will rise and the quantity supplied will fall, causing a shortage there is nothing preventing the price from falling to its equilibrium level there is nothing preventing the price from rising to its equilibrium level the quantity supplied will rise and the quantity demanded will fall, causing a surplus
the quantity demanded will rise and the quantity supplied will fall, causing a shortage
Which of the following cannot be determined by using a production possibilities curve? Not quite right - check out the answer explanation. A. what combination of outputs maximizes benefits for society B. how much less of one output must be produced if more of another output is produced C. whether a combination of outputs can be produced D. how much output can be produced from a given level of inputs
what combination of outputs maximizes benefits for society The production possibilities curve shows all possible combinations that can be produced, but does not indicate which one maximizes society's benefits.
