question

how federal government budget deficits affect interest rates

answer

Which of the following is a macroeconomic Issue?

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microeconomics studies decisions of individual people and firms and macroeconomics studies the entire national economy.

answer

In broad terms the difference between micro and macro is that

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total, nationwide employment.

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macro topics include

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macroeconomics focuses on the national economy and the global economy.

answer

Macro differs from micro in that

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could be either a reward or a penalty.

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an incentive

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a multinational company deciding where to relocate its world headquarter B) an individual deciding how to allocate the time he or she has for work and leisure C) a small shoe factory deciding how much leather to purchase for the next quarter's production need

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which of the following is an example of a microeconomic decision

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an incentive.

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an inducement to take a particular action is called

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land, labor, capital, and entrepreneurship

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factors of production include

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investment in human capital.

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Samantha goes to college to become an engineer. this is an example of

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100 shares of Microsoft stock

answer

which of the following is NOT a factor of production

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Land Labor Capital Entrepreneurship

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which of the following are considered factors of production used to produce goods and services?

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land, labor, capital, entrepreneurship.

answer

factors of production are grouped into four categories

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Who consumes the goods and services that are produced?

answer

differences in income are most directly related to which of the following economic question

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how

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when china builds a dam using few machines and a great deal of labor, it is answering the ___ part of one of the two big economic questions?

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175 shares of microsoft stock

answer

whihc of the following is NOT a factor of production

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A student purchases a laptop computer.

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which of the following is NOT an investment in human capital

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what

answer

when an economy produces more houses and fewer typewriters, it is answering the ____ part of one of the two economic questions

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Buildings and equipment

answer

in economics, the term capital refers to

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how

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when a textile company keeps track of its inventory using a computer and its competitors uses a pad of paper and a pencil, they are both answering the ____ part of one of the two big economic questions

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for whom

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the fact that a rock star earns $5 million a year while a teacher earns $25,000 annually is most directly an example of an economy answering the ___ part of one of two economic questions

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More services are produced than goods.

answer

in the US economy, which of the following statements is TRUE

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Why do incentives affect only marginal costs?

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which of the following is NOT part of the first big economic question

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land only

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as a natural resource, such as fishing territories, is considered an example of

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Higher taxes on gas would benefit society as a whole.

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one economist says that raising taxes on gas would be in the social interest. what does this economist mean

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own all the other resources used in the production process.

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entrepreneurs do all of the following except

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10,300

answer

during the summer you have made the decision to attend summer school, which prevents you from working at your usual summer job in which you normally earn $6,000 for the summer. your tuition cost is $3,000 and books and supplies cost 1300. in terms of dollars, what is the opportunity cost of attending summer school?

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a marginal cost.

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a cost due to an increase in activity is called

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total amount paid to only the new worker.

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a lawn service is deciding whether to add an additional employee to its summer crew. the marginal cost of hiring this worker depends on the

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additional gain from one more unit of an activity.

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the marginal benefit is the

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any decision regarding the use of a resource involves a costly choice.

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the term opportunity cost points out that

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The "highest-valued alternative given up to get something" is the opportunity cost. Scarcity creates opportunity costs.

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which of the following statements are correct

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an incentive; marginal benefit exceed the marginal cost

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Suppose that the government of New York state promises to decrease taxes to a firm if it decides to stay in New York instead of moving to another state. this policy on the part of the state constitues _____, to make the _____ of the firm remaining in New york.

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talking with friends.

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From 8 pm to 10 pm, susan can attend a movie, study, or walk with friends, suppose that susan decided to go to the movie but thinks that, if she hadn't, she would otherwise have talked with friends. the opportunity cost of the attending the movie is

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none of the above lol

answer

in economics we learn that

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opportunity cost

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when the government hires people to serve in the army, these people are no longer available to do other work. This choice illustrates the concept of

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your marginal benefit from studying economics an hour must have been greater than its marginal cost

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suppose that for the past two months, you have studied economics one hour a day. You now decide to study economics two hours a day. For the past two months...

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working out at the gym

answer

on saturday morning, you rank your choices for aactivities in the following order: go to the library, work out at the gym, have breakfast with friends, sleep late. Suppose you decide to go to the library. your opportunity cost is`

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highest-valued alternative forgone

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opportunity cost means the

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going to the symphony.

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from 8 to 11 PM, sam can either attend a basketball game, a hockey match or the symphony. suppose that sam decides to attend the hockey match and thinks to herself that if she did not go to the match she would go to the symphony. then the opportunity cost of attending the hockey match is

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20 percentage points more than the 10 hours of his time.

answer

jed had an exam score of 50 percentage points. there is an extra credit assignment that Jed can complete that will raise his exam score by 20 percentage points. jed has determined that the extra credit assignment will take 10 hours of his time. jed will complete the assignment if he values the

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must be greater than or equal to the owner's marginal cost if the owner decides to stay open

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A store remains open from 8 a.m. to 4 p.m. each weekday. The store owner is deciding whether to stay open an extra hour each evening. The owner's marginal benefit

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the highest valued alternative to attending college plus the cost of tuition.

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The opportunity cost of attending college includes the cost of

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describe what ought to be

answer

Normative economic statements

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normative statement.

answer

"The rich should pay higher income tax rates than the poor" is an example of a

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a description of some aspect of the economic world that includes only those features of the world that are needed for the purpose at hand.

answer

An economic model is

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A good economic model

answer

A good economic model

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Households are the primary source of saving.

answer

Which of the following is an example of a positive statement?

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a positive statement.

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The statement "Managers with a college education earn $18 an hour while ski instructors who did not complete college earn $10" is

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The main reason why the United States has a trade deficit with China is because China's trade practices are unfair.

answer

Which of the following is a normative statement?

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They describe what is believed about how the world appears. They can be tested as to their accuracy

answer

Which of the following are TRUE regarding "positive" statements?

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2 tons of bananas per ton of coffee.

answer

At one point along a PPF, 50 tons of coffee and 100 tons of bananas are produced. At another point along the same PPF, 30 tons of coffee and 140 tons of bananas are produced. The opportunity cost of a ton of coffee between these points is

question

resources are being inefficiently utilized.

answer

If a society is operating at a point inside its production possibilities frontier, then this society's

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who gets the goods

answer

Which of the following is NOT illustrated by a production possibilities frontier?

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society's resources are being inefficiently utilized

answer

If an economy is operating at a point inside the production possibilities frontier, then

question

the combination of goods and services that can be produced efficiently

answer

The production possibilities frontier itself illustrates

question

could indicate that some resources are unemployed.

answer

A point inside a production possibilities frontier

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increased opportunity cost of cocoa production.

answer

As residents of developing countries increase their chocolate consumption, the increased production of cocoa results in

question

steeper near the horizontal intercept than near the vertical intercept.

answer

the slope of a production possibilities frontier that displays increasing opportunity cost is

question

Points inside the frontier are attainable.

answer

Which of the following statements regarding the production possibilities frontier is TRUE?

question

when marginal benefit equals marginal cost.

answer

Resource use is allocatively efficient

question

from consuming; decreases as consumption

answer

Marginal benefit is the benefit ________ one more unit of the good and ________ of the good increases

question

decreases as more is consumed

answer

The marginal benefit of a good or service

question

marginal cost of what the resource produces is equal to the marginal benefit of what is produced.

answer

Resource use is allocatively efficient if the

question

not possible to produce more of one good without giving up the production of some other good that is valued more highly.

answer

Allocative efficiency occurs when it is

question

if the marginal benefit of the good is greater than its marginal cost.

answer

If the marginal benefit of consuming another unit of a good is positive, then to reach the allocatively efficient level of output more of the good should be produced and consumed

question

upward because of increasing opportunity cost.

answer

Marginal cost curves slope

question

$30

answer

The most anyone is willing to pay for another purse is $30. Currently the price of a purse is $40, and the cost of producing another purse is $50. The marginal benefit of a purse is

question

additional benefit from obtaining one more of a good or service decreases as more is consumed.

answer

The principle of decreasing marginal benefit implies that the

question

neither lol

answer

Which of the following is TRUE regarding marginal benefit?

question

fewer consumer goods today

answer

The opportunity cost of more capital goods today is

question

current consumption and future consumption.

answer

The tradeoff between current consumption and the production of capital goods also reflects a tradeoff between

question

leads to less consumption in the present and increased consumption in the future.

answer

Economic growth

question

the resources available to the nation change.

answer

The PPF shifts if

question

capital accumulation and technological advance

answer

Economic growth comes from ________.

question

shifts the PPF outward.

answer

Economic growth

question

his opportunity cost of tomatoes is less than Di's opportunity cost of tomatoes

answer

Tom and Di grow tomatoes and turnips. Tom has a comparative advantage in growing tomatoes if ________.

question

a lower opportunity cost of producing pop culture.

answer

One of the largest categories of exports from the United States is now pop culture: movies, music, TV programming, and videos. A direct conclusion from this information is that, compared to other countries, the United States has

question

gain from exchange if Brandon specializes in planting and Christopher specializes in plowing.

answer

) In one day, Brandon can either plow 10 acres or plant 20 acres. In one day, Christopher can either plow 14 acres or plant 14 acres. Brandon and Christopher can

question

both will benefit

answer

Tom takes 20 minutes to cook an egg and 5 minutes to make a sandwich. Jerry takes 15 minutes to cook an egg and 3 minutes to make a sandwich. If Tom and Jerry trade

question

can perform the activity at a lower opportunity cost than can anyone else.

answer

A person has a comparative advantage in an activity whenever he or she

question

bread, while Bob has a comparative advantage in the production of butter.

answer

In an eight-hour day, Andy can produce either 24 loaves of bread or 8 pounds of butter. In an eight-hour day, Bob can produce either 8 loaves of bread or 8 pounds of butter. Andy has a comparative advantage in the production of

question

plus 10 cameras.

answer

Suppose that a typical German factory can produce 20 cameras or 1 computer in an hour, and that a typical American factory can produce 10 cameras or one computer in an hour. If Germany produces one less computer and switches resources to cameras, and the United States produces one more computer and takes resources out of cameras, then the net change in camera production in both countries taken together is

question

allow traders to enjoy gains from trade. coordinate price information between buyers and sellers. facilitate trade

answer

Markets

question

households sell the services of the factors of production they control.

answer

A factor market is a market in which

question

encourages economic growth by creating incentives to invest in capital and to be innovative.

answer

A system of property rights

question

the production possibilities frontier

answer

Which of the following does NOT help organize trade?

question

adjustments in prices.

answer

In markets, people's decisions are coordinated by

question

property rights.

answer

The social arrangement that gives John Grisham, the writer of best-selling novels, the ownership of his novels is

question

ratio of the money price of a hot dog to the money price of a hamburger.

answer

The opportunity cost of a hot dog in terms of hamburgers is the

question

3 bottles of soda per bag of corn chips

answer

The price of a bag of corn chips is $3, and the price of a bottle of soda is $1. What is the relative price of a bag of corn chips?

question

relative price; 2 basketballs per football

answer

Suppose the price of a football is $20.00 and the price of a basketball is $10.00. The ________ of a football is ________.

question

relative price of a fast food meal is 5 candy bars per fast food meal.

answer

If the price of a candy bar is $1 and the price of a fast food meal is $5, then the

question

relative price of a hot dog is 1/2 of a hamburger per hot dog.

answer

If the price of a hot dog is $2 and the price of a hamburger is $4, then the

question

6 tacos per pizza

answer

The money price of a pizza is $12 per pizza and the money price of a taco is $2 per taco. The relative price of a pizza is

question

a money price

answer

Joe pays $8,000.00 in tuition. The 8,000 dollar tuition Joe pays is an example of what economists call

question

opportunity cost of wheat rises

answer

If the money price of wheat increases and no other prices change, the

question

rises

answer

The price of a DVD rental is $2.50 and the price of a downloaded movie is $1.00. If the price of a DVD rental falls by $0.50, the relative price of a downloaded movie

question

1/3 bag of corn chips per bottle of soda

answer

The price of a bag of corn chips is $3, and the price of a bottle of soda is $1. What is the relative price of a bottle of soda?

question

inversely related to its price

answer

The "law of demand" states that, other things remaining the same, the quantity demanded of any good is

question

shifts the demand curve rightward

answer

An increase in the number of consumers

question

substitution effect and income effect

answer

For normal goods which of the following explains why demand curves slope downward?

question

For an inferior good, when income increases, the demand curve shifts leftward

answer

Which of the following is TRUE?

question

cola and lemon lime soda

answer

Which of the following pairs of goods are most likely substitutes?

question

tee-shirts will decrease that is, the demand curve will shift leftward.

answer

Sweatshirts and tee-shirts are complements in consumption and the price of a sweatshirt increases. As a result, the demand for

question

are the unlimited desires of the consumer

answer

Wants, as opposed to demands

question

cupcakes will increase, that is, the demand curve will shift rightward

answer

Cupcakes and granola bars are substitutes in consumption. The price of a granola bar increases so the demand for

question

an increase in the price of X

answer

Which of the following increases the quantity supplied of good X but does NOT increase the supply of good X?

question

supply curve of good B leftward

answer

Good A and good B are substitutes in production. The demand for good A increases so that the price of good A rises.

question

a fall in the price of shredded wheat

answer

Which of the following leads to a movement along the supply curve for shredded wheat but does not shift the supply curve for shredded wheat?

question

a decrease in current supply of wheat

answer

Growers expect that the price of a bushel of wheat will incr ease in one month. This belief results in

question

movement down the supply curve.

answer

A decrease in the quantity supplied is represented by a

question

a decrease in the price of a factor of production used to produce the good

answer

Which of the following shifts the supply curve rightward?

question

people deciding that they want to buy more of the product

answer

Which of the following influences does NOT shift the supply curve?

question

neither a shortage nor surplus; not change

answer

If the price of a CD is equal to the equilibrium price, there will be ________ of CDs and the price will _______ _.

question

a shortage.

answer

A price below the equilibrium price results in

question

shortage; rise

answer

If the quantity of textbooks supplied is 10,000 per year and the quantity of textbooks demanded is 12,000 per year, there is a ________ in the market and the price will ________.

question

both the prices and the quantities of goods and services

answer

The interaction of supply and demand explains

question

surplus, and market forces will operate to lower price.

answer

If the price is above the equilibrium price, then there is a

question

In a market, at the equilibrium price

answer

In a market, at the equilibrium price

question

an increase in demand for peanut butter; an increase; an increase

answer

In 2015, the price of peanuts was rising, which led peanut butter buyers to expect the price of peanut butter would rise in the future. Consequently, in the current market for peanut butter there was ________ which resulted in ________ in the price of peanut butter and ________ in the quantity of peanut butter.

question

equilibrium price of gasoline would rise.

answer

Crude oil can be refined into home heating oil or gasoline. If very cold weather caused the price of home heating oil to increase then, the

question

the release of a medical study suggesting that consuming orange juice helps prevent cancer.

answer

In March, the quantity of orange juice sold in the town of Jackson was 3000 cartons and the price $3. In May, the quantity of orange juice sold in the town of Jackson was 3500 cartons and the price was $3.20. This change in the price and quantity sold could have been the result of

question

rise, fall, or stay the same, depending on the relative size of the shifts in the demand and supply curves.

answer

A technological improvement lowers the cost of producing coffee. At the same time, consumers' preferences for coffee increase. The equilibrium price of coffee will

question

a decrease in supply of peanut butter and an increase in demand for peanut butter; rise; an increase, decrease or possibly no change

answer

In 2014, the price of peanuts was rising, which led peanut butter sellers and peanut butter buyers to expect the price of peanut butter would rise in the future. Consequently, in the current market for peanut butter there was ________ which resulted in a ________ in the price of peanut butter and ________ in the quantity of peanut butter.

question

The equilibrium quantity of wooden desks decreases and the equilibrium price rises.

answer

What is the effect on the price and quantity of wooden desks of a rise in the price of wood?

question

has increased with no change in the supply of coffee.

answer

You observe that in the market for coffee that both the equilibrium price of coffee and the equilibrium quantity have increased. You predict that the demand for coffee

question

because of substitution effect and income effect

answer

why does the demand curve slope downward

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