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37 Cards in this Set
- Front
- Back
All of the following exemplify an improvement in technology affecting supply, except: |
increased subsidies to farmers for producing corn for its coversion to ethanol. |
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T/F: Allocative efficiency is the particular mix of goods and services least valued by society |
False |
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Substitution in production is a determinant of _____ |
Supply |
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Competition among corn producers forces them to use the best tehcnology and right mix of productive resources; otherwise their cost will be too high relative to the market proce and they will be unproiftable. This is best described as: |
Productive efficiency |
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Government-controlled prices in the form of proce ceilings and price floors do which of the following: |
Distort resources allocation |
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Improvements in technology are a determinant of: |
Supply |
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The concept of demand can be summarized by a schedule or curve showing the quantity of a product that would be: |
Consumed at various possible prices |
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If an increase in supply is smaller than a decrease in demand, the equilibrium quantity will |
decrease |
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Which of the following refers to a particular apportionment or mix of goods and services most highly valued by society? |
Allocative efficiency |
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Which of the following serve as complementary goods or services to your economics course? |
This Learnsmart tutorial |
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T/F: A price at or above the price floor is illegal? |
False |
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Government controlled prices cause: |
Surpluses |
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T/F: Consumer expectations are a determinant of supply |
False |
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A change in quantity demanded is caused by an increase or decrease in the _____ of the product under consideration and nothing else. |
price |
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Which of the following refers to demand? |
The buyer side of any market |
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The supply curve is _____ sloping curve |
An Upward |
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An increase in _____ while holding _____ constant results in a decrease in equilibrium price, but an increase in equilibrium quantity. |
Supply, Demand |
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T/F: The prices of the resources used in the production process help determine the costs of production incurred by films |
True |
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_____ in supply while holding demand constant results in an increase in equilibrium price, but a decrease in equilibrium quantity. |
A decrease |
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Quantity demanded is illustrated on the _____ axis, while price is illustrated on the _____ axis. |
x,y |
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In certain markets, the _____ sometimes concludes that supply and demand will produce prices that rae unfairly high for buyers or unfairly low for sellers |
government |
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The demand curve measures quantity _____ on the horizontal axis and _____ on the vertical axis |
demanded, price |
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Choose all of the following that will cause a change in supply, not quantity supplied |
Technology |
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A schedule or a curve that shows the various amount of a product that consumers are willing to and able to purchase at each of a series of possible process during a specified period of time is called: |
Demand |
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In order to construct a demand curve and demonstrate the law of demand, one would have to: |
draw a downward sloping curve to demonstrate the inverse relationship between price and quantity demanded |
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Which of the following summarize the determinants of demand and their net effect on the demand curve? |
An increase in income will shift the demand curve to the right for a normal good and shift the demand curve to the left for an inferior good. |
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On a simple demand model, a change in quantity demanded is illustrated by a _____ and a change in demand is illustrated by a _____. |
movement along the demand curve; shift of the demand curve. |
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An increase in equilibrium quantity and indeterminate change in equilibrium price is a result of which the following? |
A simultaneous and proportional increase in supply and demand |
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Which of the following type of goods affect the demand for a product due to a change in their price? |
Complementary goods |
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A shortage results from an excess of quantity _____ |
demanded |
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An unfavorable change in consumer tastes and preferences for a product will _____ demand, shifting the demand curve to the _____ |
Lessen, left |
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An economic unit, meaning a consumer or producer, should continue to engage in an activty as long as the marginal _____ exceeds the marginal _____ |
benefit, cost |
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Which of the following describes the law of demand? |
All other things being equal, as price increases, quantity demanded decreases |
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A demand schedule illustrates the relationsip between price and quantity in a _____ format, whereas the demand curve is a _____ representation. |
tabular ; graphical |
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A decrease in demand while holding supplly constant results in: |
a decrease in both equilibrium price and quantity |
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T/F: The market supply curve is derived by summing up the producers individual demand curves for good or service. |
False |
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The only factor that causes a movement along the supply curve is: |
price |