Econ 202 Exam 1 CSU – Flashcards
23 test answers
Unlock all answers in this set
Unlock answers 23question
The fact that there are too few resources to satisfy all our wants is attributed to
answer
Scarcity.
Unlock the answer
question
The goal of the consumer in a market economy is to use his or her limited income to
answer
maximize total utility
Unlock the answer
question
If the government places a price ceiling on cancer-treating drugs, then
answer
Fewer cancer treating drugs will be available.
Unlock the answer
question
A shift in supply is defined as a change in
answer
Supply because of a change in a determinant of supply.
Unlock the answer
question
An increase in the supply of gasoline, ceteris paribus, will cause equilibrium price
answer
To fall and equilibrium quantity to rise.
Unlock the answer
question
opportunity cost refers to the
answer
The most desired good or service given up when something is obtained.
Unlock the answer
question
An indifference curve shows the
answer
Combinations of goods giving equal utility to a consumer. (aka no preference)
Unlock the answer
question
The market demand for a product is
answer
The sum of all of the individual demands for that product.
Unlock the answer
question
a rational consumer will consume until marginal utility is
answer
zero
Unlock the answer
question
Sociopsychiatric explanations of consumer behavior include the
answer
Desire for ego and status.
Unlock the answer
question
Economic explanations of consumer behavior take into consideration
answer
Prices and income.
Unlock the answer
question
In the article "Men vs. Women: How They Spend,"
answer
Both sexes spend more than they earn.
Unlock the answer
question
The law of diminishing marginal utility gives us a deeper understanding of the downward-sloping demand curve because
answer
When marginal utility is high, we are willing to pay a higher price.
Unlock the answer
question
As more satisfaction is achieved from consuming a good with diminishing marginal utility, then total utility
answer
Increases at a decreasing rate.
Unlock the answer
question
Any point on the budget constraint
answer
Represent a combination of two goods that are affordable.
Unlock the answer
question
The slope of the indifference curve is equal to the
answer
Marginal rate of substitution.
Unlock the answer
question
Elasticity of supply looks at
answer
How responsive sellers are to a change in price.
Unlock the answer
question
A price change will have no effect on total revenue if demand is
answer
Unitary.
Unlock the answer
question
The total revenue effect of a movement along a demand curve can best be predicted using the
answer
Price elasticity of demand.
Unlock the answer
