MACRO MID – Flashcards

A market is:

Markets, viewed from the perspective of the supply and demand model:

The law of demand states that, other things equal:

Graphically, the market demand curve is:

The demand curve shows the relationship between:

Economists use the term "demand" to refer to:

The relationship between quantity supplied and price is _____ and the relationship between quantity demanded and price is ____.

When the price of a product increases, a consumer is able to buy less of it with a given money income. This describes the:

A demand curve:

In presenting the idea of a demand curve, economists presume the most important variable in determining the quantity demanded is:

The income and substitution effects account for:

When the price of a product rises, consumers shift their purchases to other products whose prices are now relatively lower. This statement describes:

In the past few years, the demand for donuts has greatly increased. This increase in demand might best be explained by:

Which of the following will not cause the demand for product K to change?

Which of the following would not shift the demand curve for beef?

In 2007, the price of oil increased, which in turn caused the price of natural gas to rise. This can best be explained by saying that oil and natural gas are:

An economist for a bicycle company predicts that, other things equal, a rise in consumer incomes will increase the demand for bicycles. This prediction assumes that:

If two goods are complements:

DVD players and DVDs are:

If the demand curve for product B shifts to the right as the price of product A declines, then:

If the price of product L increases, the demand curve for close-substitute product J will:

Which of the following statements is correct?

A shift to the right in the demand curve for product A can be most reasonably explained by saying that:

Which of the following will cause the demand curve for product A to shift to the left?

If X is a normal good, a rise in money income will shift the:

If Z is an inferior good, an increase in money income will shift the:

College students living off-campus frequently consume large amounts of ramen noodles and boxed macaroni and cheese. When they finish school and start careers, their consumption of both goods frequently declines. This suggests that ramen noodles and boxed macaroni and cheese are:

Assume the demand curve for product X shifts to the right. This might be caused by:

If consumer incomes increase, the demand for product X:

If products A and B are complements and the price of B decreases the:

If products C and D are close substitutes, an increase in the price of C will:

In constructing a demand curve for product X:

Suppose an excise tax is imposed on product X. We expect this tax to:

An increase in the price of product A will:

When an economist says that the demand for a product has increased, this means that:

The term "quantity demanded":

Assume that the demand curve for product C is downsloping. If the price of C falls from $2.00 to $1.75:

The law of supply indicates that, other things equal:

The upward slope of the supply curve reflects the:

A leftward shift of a product supply curve might be caused by:

An improvement in production technology will:

In moving along a supply curve which of the following is not held constant?

Assume product A is an input in the production of product B. In turn product B is a complement to product C. We can expect a decrease in the price of A to:

Suppose product X is an input in the production of product Y. Product Y in turn is a substitute for product Z. An increase in the price of X can be expected to:

A government subsidy to the producers of a product:

If there is a surplus of a product, its price:

If the demand and supply curves for product X are stable, a government-mandated increase in the price of X will:

If the supply and demand curves for a product both decrease, then equilibrium:

With a downsloping demand curve and an upsloping supply curve for a product, an increase in consumer income will:

With a downsloping demand curve and an upsloping supply curve for a product, a decrease in resource prices will: