Macroeconomics Bertrand Quizes 1,2,3 – Flashcards
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unlimited wants exceed limited resources
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Scarcity refers to the situation in which: -unlimited wants exceed limited resources -unlimited resources exceed limited wants. -a country's population is larger than its resource base. -a nation's poverty level increases faster than its population.
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choices; scarce
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Economics is the study of the ________ people make to attain their goals, given their ________ resources. -purchases; unlimited -choices; scarce -income; available -decisions; household
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an additional or extra
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What does the term "marginal" mean in economics? -the edge of a market -an additional or extra -illegal -secondary
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the highest valued alternative that must be given up to engage in an activity.
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Opportunity cost is defined as: -the benefit of an activity. -the monetary expense associated with an activity. -the highest valued alternative that must be given up to engage in an activity. -the total value of all alternatives that must be given up to engage in an activity.
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What to produce?
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Fast food restaurants produce a range of menu items such as hamburgers, chicken sandwiches, salads, and french fries. What fundamental economic question are they addressing by offering this range of items? -How to produce goods that consumers want? -Why produce a variety of menu items? -What to produce? -Who to produce the menu items for?
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What determines the unemployment rate?
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Which of the following is a macroeconomics question? -What determines the unemployment rate? -How is the production quantity of digital cameras determined? -What factors determine the price of iPhones? -What determines the wages and benefits of flight attendants?
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profit
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In economics, the difference between a firm's revenues and its costs is referred to as: -physical capital. -profit. -capital gains -factor payments.
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the machines workers have to work with
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Which of the following is counted as "capital" in economics? -the money people have -the machines workers have to work with -the accumulated skills and training workers have -the wealth people have
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a direct relationship
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The relationship between sales and revenue is -an inverse relationship. -a direct relationship. -a negative relationship. -independent.
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80 percent
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If the price of milk was $1.25 a gallon and it is now $2.25 a gallon, what is the percentage change in price? -4.4 percent -8 percent -44 percent -80 percent
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the maximum attainable combinations of two products that may be produced in a particular time period with available resources
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The production possibilities frontier shows -the various products that can be produced now and in the future. -the maximum attainable combinations of two products that may be produced in a particular time period with available resources. -what an equitable distribution of products among citizens would be. -what people want firms to produce in a particular time period.
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attainable
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The ________ production points on a production possibility curve are the points along and inside the production possibility frontier. -attainable -unattainable -productively efficient -allocatively efficient
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along Dina's production possibilities frontier
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Choice Quantity of Sliders Produced Quantity of Hot Wings Produced A 80 0 B 60 25 C 40 50 D 20 75 E 0 100 Refer to Table. Assume Dina's Diner only produces sliders and hot wings. A combination of 40 sliders and 50 hot wings would appear -along Dina's production possibilities frontier. -inside Dina's production possibilities frontier. -outside Dina's production possibilities frontier. -at the vertical intercept of Dina's production possibilities frontier.
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inside Dina's production possibilities frontier
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Choice Quantity of Sliders Produced Quantity of Hot Wings Produced A 80 0 B 60 25 C 40 50 D 20 75 E 0 100 Assume Dina's Diner only produces sliders and hot wings. A combination of 40 sliders and 25 hot wings would appear -along Dina's production possibilities frontier. -inside Dina's production possibilities frontier. -outside Dina's production possibilities frontier. -at the vertical intercept of Dina's production possibilities frontier
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shifting outward
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Economic growth is represented on a production possibilities frontier model by the production possibility frontier -shifting outward -shifting inward. -becoming steeper. -becoming flatter.
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25 silk leaves
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Bella can produce either a combination of 60 silk roses and 80 silk leaves or a combination of 70 silk roses and 55 silk leaves. If she now produces 60 silk roses and 80 silk leaves, what is the opportunity cost of producing an additional 10 silk roses? -2.5 silk leaves -10 silk leaves -25 silk leaves -55 silk leaves
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increase the demand for the Galaxy
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If the Apple iPhone and the Samsung Galaxy are considered substitutes, then, other things equal, an increase in the price of the iPhone will decrease the demand for the iPhone. increase the demand for the Galaxy. increase the quantity demanded for the Galaxy. increase the quantity demanded for the iPhone.
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as the price of bagels increases, the quantity of bagels demanded will decrease.
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The law of demand implies, holding everything else constant, that as the price of bagels increases, the quantity of bagels demanded will decrease. as the price of bagels increases, the demand for bagels will decrease. as the price of bagels increases, the quantity of bagels demanded will increase. as the price of bagels increases, the demand for bagels will increase.
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demand has increased
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If a demand curve shifts to the right, then demand has increased. quantity demanded has increased. demand has decreased. quantity demanded has decreased.
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the price of the product
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A change in all of the following variables will change the market demand for a product except the price of the product. population and demographics income. tastes.
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a normal good
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If an increase in income leads to in an increase in the demand for butter, then butter is a neutral good. a normal good. a necessity. a complement.
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the supply of peaches has decreased
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If in the market for peaches, the supply curve has shifted to the left the supply of peaches has increased. the supply of peaches has decreased. the quantity of peaches supplied has increased the quantity of peaches supplied has decreased.
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a decrease in supply
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Last year, the firm supplied 8K ceramic pots at $40 each. This year, the company supplied the same quantity of ceramic pots at $55 each. Based on this evidence, The firm has experienced a decrease in supply. an increase in supply. an increase in the quantity supplied. a decrease in the quantity supplied.
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The supply curve shifted to the left.
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In 2005, the U.S. Fish and Wildlife Service banned the importation of beluga caviar, the most prized of caviars, from the Caspian Sea. What happened in the market for caviar in the U.S.? The supply curve shifted to the left. The supply curve shifted to the right. The demand curve shifted to the right. The demand curve shifted to the left.
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At equilibrium, quantity demanded equals quantity supplied
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Which of the following is the correct way to describe equilibrium in a market? At equilibrium, D equals S. At equilibrium, quantity demanded equals quantity supplied. At equilibrium, market forces no longer apply. At equilibrium, scarcity is eliminated.
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The quantity demanded of walnuts is greater than the quantity supplied
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Which of the following is evidence of a shortage of walnuts? Firms lower the price of walnuts. The price of cashews is lowered in order to make up for the walnut shortage. The equilibrium price of walnuts falls due to a decrease in demand. The quantity demanded of walnuts is greater than the quantity supplied.
