Economics Final Review Kahoot – Flashcards
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Pleasure, happiness, or satisfaction received from a product
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Utility
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This will NOT produce an outward shift of the production possibilities curve
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The reduction of unemployment
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500 bottles of perfume sold when price is $7. Prices rise to $9 and it sells 450 bottles.
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Price elasticity of demand is .33 and inelastic
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Laissez-faire suggests
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Government should not interfere with the economy
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Incentive problem under communist central planning refers to idea that...
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No individuals gain from responding to needs of the economy
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If price decreases by 3%, and this good is inelastic then total revenue would...
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Fall
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If an increase in price of X resulted in a decrease in demand of Y...
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X & Y are complementary goods
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What would occur if gov't sets the price for a product below the market equilibrium price
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Quantity demanded is greater than quantity supplied
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This statement is correct
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If supply increases and demand decreases, equilibrium price will fall
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This best describes the short run for a firm
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The plant capacity for a firm is fixed
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If a firm shuts down in the short run...
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It will realize a loss equal to its total fixed costs
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In a pure comp. industry where firms are experiencing losses, we can predict that...
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The market supply curve will decrese
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What a price discrim. Pure monopolist will attempt to charge each buyer...
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The max. price each would be willing to pay
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Compared with purely comp. labor market, a monopsonistic market will result in...
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Lower wage rates and a lower level of emplotment
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Pure economic rent refers to the...
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Payment for any resource over and above is requiredq
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To be considered a private good...
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Rival and excludable
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If production of a good creates positive externalities, you would expect the private market...
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To produce too little of the good
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What would be an economists view on spending money on controlling pollution
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Reduced until Marg. Social Cost equals Marg. Social Benefit
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When one decision is made, the next best alternative not selected is...
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Opportunity cost
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Basic economic problem for society is the combined existence of...
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Scarce economic resources and unlimited economic
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This is a distinguishing feature of a command shstem
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Central planning
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Households make expenditures in the ___ market and receive income through the ___ market
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Product; factor
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If comp. industry Z is making substantial economic profit, output will...
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Expand in Z, as more resources enter
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2% rise in income leads to 3% fall in Qd in good X. Coefficient of income elasticity...
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Is negative, thus X is an inferior good
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Price elasticity of D would be ___ if TR rises as price of good increases
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Inelastic
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Will NOT cause supply curve to shift
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A change price of the good
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This is a correct statement
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Price floors create surpluses
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Combination of changes in S and D that would most likely increase the equilibrium quantity
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When supply increases and demand increases
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Monopolistically comp. firm & pure comp. firms are similar in that...
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Economic profit tends toward zero for both in the long run
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If monopolistically comp. firms in an industry are making an economic profit, then
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New firms will enter and demand will decrease for all firms
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When compared with pure comp. industry, we can predict that monopolists will...
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Charge higher prices and produce less output
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These will cause an increase in the demand for labor:
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Increase in the price of the product being sold AND increase in worker productivity
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This best meets the criteria of a public good
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National defense
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Why market system fails to produce public goods
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Person unwilling to pay can't be excluded from the benefits
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This advocates public-choice theory agree
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Because if median-voter hypothesis, there is not much difference in the views of candidates running for office
