ECON202 Quiz Answers
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Due to an increase in hay prices an input for raising cattle, the price of a gallon of milk increases from $2.98 to $3.25
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Quantity Demanded Decreases
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Groupon has a group on for $6 off the price of laser tag.
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Quantity Demanded Increases
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Sharp increase in the price of wood causes increases in prices for dressers and desks.
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Quantity Demanded Decreases
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Week long special at safeway, where pork shoulder is on sale at $1.99 a pound, down from $3.99 per pound.
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Quantity Demanded increases
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Buy one get one special for mp3 albums on amazon.
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Quantity demanded increases
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Out N in, a burger joint with an absurd national following in the US., sells more burgers as the price of chicken increases
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Shift of the demand curve
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After it earns 1st prize in the spicy category of a ramen tasting competition, college student by more Lamian brand ramen noodles.
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Shift of the demand curve
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Nettoyer reassess the price for its laundry detergent, which results in less sales and strange around college dorms
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Movement along the demand curve
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Le Bureau et Chaise offers a one weekend clearance sale on its old model of desks which causes students to rush to upgrade their dorm furniture.
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Movement along the demand curve
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The cost of lithium ion batteries has been dropping more steeply than expected. The figure below shows the market for electric vehicles.
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Equilibrium Price decreases Equilibrium Quantity Increases Supply curve shifts to the right
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Assume that many farmers choose between planting either peanuts or corn. Suppose that the government deciders to offer farmers a subsidy of $10 a bushel to plant corn since it was discovered that ethanol made from corn can be used as alternative fuel source.
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Supply curve for peanuts rise, Supply curve for corn decreases, due to a change in opportunity cost
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Suppose that the price of toy footballs goes up from 8 dollars to 15 dollars
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there will be an increase in quantity supplied
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Hot springs are discovered outside of Golden, Colorado, resulting in the construction of several new ski resorts. The resorts offer many personalized services and require a large staff to accommodate customer needs.
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Quantity supplied moves to the right
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The federal government decides to adopt a new visa policy for guest workers seeking to immigrate the the US in order to find jobs. as a result 30% more work visas are given out than had previously been granted. The change is expected to be permanent
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Supply shifts to the right
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A new diet is popularized by a health expert, Richardo Simmonetz, that requires people to eat only fried chicken for six weeks. The popularity of the diet resuls in more chicken plants being built nationwide to handle the increased demand for chicken.
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Quantity Supplied shifts to the right
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After discovering that flash steaming tuna first before using mechanical processes to extract meat, removes more tuna flesh. more cans of tuna hit the shelves at major grocers.
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Shift of the supply curve
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Amplitude decides to join the smartphone market
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Shift of the supply curve
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Americans put up their gold and silver jewelry for sale as a result of rising prices.
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movement along the supply curve
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a local fight club supplies less of its premium quality soap as a result of lower prices
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movement along the supply curve
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several other companies now pro due cellphones with gps capability, making substitutes for gps units. Suppose the prices of gps enabled cell phones increase due to a large batch of faulty chips. what effect does this have on the supply and demand.
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demand shifts right, equilibrium price increases and equilibrium quantity increases
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If Romaine lettuce and iceberg lettuce are substitute product, an increase in the price of Romaine lettuce will______ the demand for iceberg lettuce
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Increase
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Which of the following does not shift the demand curve: -changes in the price of the product itself -changes in income -changes in population -changes in tastes and preferences
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changes in the price of the product itself
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The quantity supplied is the: amount of inputs that a firm earns profit on. change in the sellers' output multiplied by the change in price. incremental cost of producing one more unit of output. amount of a good that firms are willing and able to sell at a particular price during a given period of time.
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amount of a good that firms are willing and able to sell at a particular price during a given period of time.
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Recall the discussion in your textbook about the demand curve for oil. Which of the following correctly explains why the demand curve for oil is negatively sloped: When the price of oil rises, consumers use oils for more and varied purposes. As the price of oil rises, consumers begin to use oil only for those purposes where no good substitute exists As the price of oil rises, consumers use oil more freely. As the price of oil rises, more produces are able to produce oil.
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As the price of oil rises, consumers begin to use oil only for those purposes where no good substitute exists
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which one of the following answer choices wouldd cause the demand curve for an inferior good to shift to the left? a fall in incomes a fall in the price of the inferior good a rise in incomes a rise in the price of an inferior good
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a rise in incomes
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The quantity of DVDs that people plan to buy this month depends on all of the following EXCEPT the: price of DVDs price of movies for download population quantity of DVDs the sellers have stocked
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quantity of DVDs the sellers have stocked
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you observe that the price of coffee has increased, yet evidence suggests demand for coffee has been stable; you surmise a possible explanation that is: There has been no change in the supply of coffee There has been increases use of subsides in coffee production Wages of workers in coffee production might have decreased Wages of workers in coffee production might have increased
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Wages of workers in coffee production might have increases
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What does the law of demand state There is a negative relationship between price and quantity demanded There is an inverse relationship between price and quantity that buyers are willing and able to buy. There is an inverse relationship between price and quantity demanded. all of the following
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all of the following
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Law of demand
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There is a negative relationship between price and quantity demanded There is an inverse relationship between price and quantity that buyers are willing and able to buy. There is an inverse relationship between price and quantity demanded.
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Why did the NAFTA agreement result in an increase in lumber supply in the UNITED STATES?
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NAFTA reduced barriers to trade allowing Canadian lumber to enter the United States
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Which of the following are compliments? Hotdogs and hamburgers books and book lights coffee and tea cars and vans
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Books and book lights
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True/False: bill usually buys 2 pounds of stench each month. If bills steak consumption is observed to decline to 1 pound in a particular month, this means bills demand for stench has declined
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False
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In a free market in which equilibrium price and quantity prevails: Consumer surplus is less than producer surplus consumer surplus is greater than producer surplus consumer surplus is the same as producer surplus consumer surplus and producer surplus are maximized
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consumer surplus and producer surplus are maximized
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TH condition for equilibrium to occur in a market is
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quantity demand equalling quantity supplied
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surpluses lead to
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lower prices
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shortages lead to
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higher prices
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Which of the following wouldn't lead to a decrease in the price of domestic automobiles? an increase in the price of foreign made automobiles an economic recession which decreases consumer income a decrease in the wages to paid union workers an increase in the number of domestic auto makers
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an increase in the price of foreign made automobiles
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immediately after a hurricane, it is likely that the quantity demanded for tree cutting removal serves will ____ the quantity supplied, causing the price of tree cutting removal services to ______
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exceed, rise
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when asian countries went into a recession in 1997, the demand for oil_______ and the price of oil______.
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decreases, decreased
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Demand curve
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a function that shows the quantity demanded at different prices
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quantity demanded
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the quantity that buyers are willing and able to buy at a particular price
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consumer surplus
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the consumers gain form exchange, or the difference between he maximum price a consumer is willing to pay for a certain quantity and the market price
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total consumer surplus
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an amount measured by the area beneath the demand curve and above the price up to the quantity traded
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normal good
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a good for which demand increases when income increases
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inferior good
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a good for which demand decreases when income increases
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substitutes
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two goods for which a decrease in the price of one leads to a decrease in demand for the other
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compliments
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two goods for which a decrease in the price of one leads to an increase in the demand for the other, hamburgers/hamburgerbuns
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supply curve
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a function that show the quantity supplied at different prices
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quantity supplied
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the quantity that sellers are willing and able to sell at a particular price
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producer surplus
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the producers gain from exchange or the difference between the market price and the minimum price at which a producer would be willing to sell a particular quantity
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total producer surplus
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an amount measured by the area above the supply curve and the the price up to the quantity traded
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surplus
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a situation in which the quantity supplied is greater than the quantity demanded
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shortage
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a situation in which the quantity demanded is greater than the quantity supplied
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equilibrium price
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the price at which the quantity demanded is equal to the quantity supplied
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equilibrium quantity
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the quantity at which the quantity demanded is equal to the quantity supplied
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price ceiling
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a maximum price allowed by law
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deadweight loss
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the total lost consumer and producer surplus when not all mutually profitable gains from trade are exploited
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rent control
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a price ceiling on retail housing
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price floor
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a minimum price allowed by law
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GDP
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the market value of all final goods and services produced within a country in a year
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GDP per capita
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GDP divided by population
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GNP
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the market value of all final goods and services produced by a county's permanent residents, wherever located in a year
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nominal variables
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variables such as nominal GDP that have not been adjusted for changes in prices
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real variables
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variables such as real GDP that have been adjusted for changes in prices by using the same set of prices in all time periods
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recession
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a significant widespread decline in real income and employment
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business fluctuation
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the short run movements in real GDP around its long term trend
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consumption
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private spending on final goods and services
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government purchases
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spending by all levels of government on final goods and services not including transfers
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net exports
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the value of exports minus the value of imports
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Economic growth
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the growth rate of real gdp per capita: Gt=Yt-Yt-1/Yt-1*100 where Yt is real per capita GDP in period t
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physical capital
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the stock of tools including machines, structures, and equipment
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human capital
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tools of the mind; the proactive knowledge and skills that worlds acquire through education, training, and experience
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technological knowledge
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knowledge about how the world works that is used to produce goods and services
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institutions
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the "rules of the game" that structure economic incentives
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free rider
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someone who consumes the benefits of a public good without paying a share of the costs
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economies of scale
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the advantages of large-scale production that reduces average cost as quantity increases
