Section 2 Macroeconomics Questions – Flashcards

If product Y is an inferior good, a decrease in consumer incomes will:

If the price of K declines, the demand curve for the complementary product J will:

An increase in the price of product X resulted in a decrease in the demand for product Y. This indicates that products X and Yare:

If two goods are close substitutes:

If two goods are close substitutes:

Other things remaining constant, the only way to move along a given supply curve for a product is for:

If the price of beef rose and the demand for chicken increased, then beef and chicken are:

Suppose that goods A and B are close substitutes and the price of good B falls. We would then expect an:

If service stations raise the price of gasoline and, experience a decrease in demand for automobile tires, then gasoline and tires are:

If the price of gasoline increases and car dealers experience a decrease in demand for sport utility vehicles, then gasoline and sport utility vehicles are:

Which factor will increase the demand for a product?

People demand more of product X when the price of product Y decreases. This means X and Y are:

A decrease in the price of product X causes an increase in the demand for product Y. Products X and Y are most likely to be:

Which would cause an increase in the demand for product A?

An increase in the price of product B resulted in an increase in the demand for product C. This indicates that products B and Care:

A huge 50 percent off sale on golf clubs is advertised for next week. What happens this week in the market for golf clubs?

Car insurance and cars are complements. If the price of car insurance increases, the

A change in the demand for apples could result from any of the following EXCEPT:

In a recession, consumers have less income to spend. As a result, if dining out is a normal good, then which of the following would happen to the demand curve for dining out?

What happens to the demand for a good if a complement's price increases?

If the demand for digital cameras increases when consumers' incomes rise, then digital cameras are

Consumers eat salsa with taco chips. The price of salsa rises. How does the increase in the price of salsa affect the demand for taco chips?

If income increases and the demand for bus rides decreases,

Ramen noodles are a staple food item for many college students. Ramen noodles are very inexpensive and easy to prepare. After students graduate, find employment and earn a higher income, they decrease their Ramen noodle purchases significantly. In this case, Ramen noodles are

Two brands of water, Natural Water and Mountain Water, are close substitutes. If the price of Mountain Water decreases, the fall in price

If the demand for a good increases when people's incomes increase,

Which of the following is true? a) If the price of a substitute rises, the demand curve shifts leftward. b) An increase in the cost of producing a good shifts the demand curve leftward. c) If people expect the price of a good will rise in the future, the demand curve shifts leftward. d) An increase in population shifts the demand curve leftward. e) For an inferior good, when income increases, the demand curve shifts leftward.

Consumers regard Dell computers and Apple computers as substitutes. If the price of a Dell computer decreases, the

Water bottlers announce that next month the price of bottled water will rise by 25 percent. Which of the following occurs immediately?

Which of the following increases the demand for a good or service?

There are five hundred buyers in the market for cheese. If we know each individual's demand curves, to find the market demand, we must

The "law of demand" refers to the fact that, other things remaining the same, when the price of a good rises,

Capitalism is an economic system that:

In stores, it is common to find seasonal products marked down when the season ends. What explains this behavior?

An increase in the quantity demanded is shown as a

The American Dairy Association starts a highly successful advertising campaign that makes most people want to drink more milk. As a result,

With an increase in profits in a particular industry, we would expect:

The market demand curve for mangos is

Which of the following statements is true about a competitive market? A perfectly competitive market:

The "quantity demanded" of any good or service is ________ during a specified time period and at a specified price.

Gasoline prices increase by 50 percent and other things remain the same. As a result, there is

Which statement is correct? a) Prices affect the distribution of goods in a market system but not the allocation of resources. b) The operation of a market system has little, if any, effect on the distribution of income in the economy c) In a market system, prices serve to ration goods and services to consumers. d) In a market system, buyers and sellers must be in face-to-face contact with each other.

The market demand curve

The downward slope of a demand curve.

The quantity demanded of a good or service is

By free enterprise, we mean that:

Which of the following describes the law of demand? When other things remain the same, as

A demand schedule shows

Competition is more likely to exist when:

A purely competitive economy assumes the existence in each industry of a:

The market system is characterized by:

Which is not a determinant of supply? a) the existing state of technology used by the firm b) the level of government taxes and subsidies c) the cost of resources used in production d) the market price of the good

The market system corrects a shortage by:

Given the supply curve of butter, a reduction in the price of margarine will tend to:

If the market price is above the equilibrium price:

Other things being equal, how would the market for bicycles be affected by an increase in the availability and number of bicycle paths?

We observe a market in which the price has risen and the quantity sold has risen as well. This could be caused by a(an):

A headline reads "Lumber Prices Up Sharply." In a competitive market, this situation would lead to a(n):

A surplus of any given commodity can be expected whenever the:

If demand for a good decreases and supply remains constant equilibrium price:

If demand for a good increases and supply remains constant equilibrium price:

The market system automatically corrects a surplus condition in a competitive market by:

If the quantity supplied of a product is less than the quantity demanded, then:

An increase in demand and an increase in supply will:

If the supply of a good decreases and demand remains constant equilibrium price:

An increase in demand for oil and an increase in supply of oil will:

Which of the following is most likely to result in a shift to the right in the demand curve for orange juice?

An increase in the price of spoons will cause a(n)

What are the effects on the supply and demand curves for Frisbees if a new procedure reduces the cost of making Frisbees?

The market demand curve for labor would shift to the left as the result of

The market equilibrium price of home heating oil is $1.50 per gallon. If a price ceiling of $1.00 per gallon is imposed, which of the following will occur in the market for home heating oil? I. Quantity supplied will increase. II. Quantity demanded will increase. III. Quantity supplied will decrease IV. Quantity demanded will decrease.

If the supply of a factor of production is fixed, which of the following will be true of its price?

An effective price floor introduced in the market for rice will result in

Which of the following inevitably causes a shift in the market demand for workers with a certain skill?

Which of the following statements about a price ceiling is accurate?

Reducing the tariff on Canadian beer sold in the United States will most likely have which of the following effects on the market for beer produced and sold in the United States

A leftward shift in the supply curve of corn would result from

If supply and demand both increase, the result is

Which of the following will shift the supply curve for textbooks to the left?

When the labor demand curve is downward-sloping, an increase in the minimum wage is

In order to find the market supply curve for a particular good, one would

After Julia received a raise in her income, she began purchasing more ice cream cones and fewer popsicles. For Julia, popsicles

Suppose a family buys its clothing from a discount store and treats these items as inferior goods. Under such circumstances, this family's consumption of discount store clothing will

If an increase in the price of good X causes a drop in demand for good Y, good Y is:

Which of the following would necessarily cause a fall in the price of a product?

A demand curve slopes downward for an individual as the result of

The demand curve for labor is derived from