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54 Cards in this Set

  • Front
  • Back
The ______ of a choice is hte value of the forgone alternative that was not choosen
A.comparative advantage
B.production possibility
c. opportunity cost
d. gain from trade
C. opportunity cost
The production possibilities curve
a. slopes down and is bowed out from the origin
b. slopes upward and is bowed out from the origin
c.slopes downward and is bowed in toward the origin
d.slopes upward and is bowed in toward the origin
A slopes downward and is bowed out form the origin
Points outside the production possibilities curve are
a.efficient
b. inefficient
c. impssoble
d. possible
c. impossible
Economics growth Causes
a. an in ward shift in the production possibilities curve
b. an outward shift in the production possiblities curve
c. an upward movement on the production possibilites curve
d. a downward movement on the production possibilities curve
b. an outward shit in the production possibilities curve
the two main branches of economics are _____ and______.
a. microeconomics and normative economics
b. Micoeconomics and positive economics
c. microeconomics and macroeconomics
d. normatice economics and positive economics
c. mico and macro
which of the following is a central theme of economics
a. causation
b. abundance
c. scarcity
d. ceteris paribus
d Ceteris paribus
According to the law of demand, when price of a good increases,
A.people will choose to purchase ledd of that good and more of the other good
b. people will provide more of that good
c. people will choose to purchase more of that good and less of other goods
d, people will provide less of that good
a. people will choose to purchase less of that good and more of the other goods
according to the law of supply, when price of a good increases,
A.people will choose to purchase ledd of that good and more of the other good
b. people will provide more of that good
c. people will choose to purchase more of that good and less of other goods
d, people will provide less of that good
b. people will provide more of the good
macroseconomics focuses on
a. the whole national economy
b. the behavior of individual firms
c. the behavior of individual households
d.markets
a. the whole nation al economy
_____is the relationship between the price of a good and the quantity that consumers want to buy. The amount the consumers want to buy is called the______
a. supply, quanity supplied
d.Demand,quantity supplied
c.Demand, quantity demanded
d. supply, quantity demanded
C. demand and quanitity demanded
Changes in the price of a good, all other things being equal, lead to _______ the demand curve of for that good
a. An outward shift in
b. an inward shift in
C. movement along
d. a shift in
C. A movement along
demand reflects, amoung other things, consumers' preferences. when consumers' tastes change, the demand curve_______.
A. remains unchanged
B. Shifts outwards
C.shifts inwards
D. Shifts
D. Shifts
the euilibrium price in a market is the price that equates suppy and demand
A.true
B. False
B false
A shortage occurs when the demand is greater than supply
a. tRUE
B. FALSE
A.TRUE
Potattoes would be classed as an inferior good if
A. people at all levels of income consumed them
b. other food was more nutritious
c. more were consummed as incomes fell
d.fewer were consumed when the price of bread fell
c. more were consumed as incomes fell
An increase in suppy is showen by
A. shifting the supply curve up
B. shifting the supply curve to the left
C. shifting the supply curve to the right
D. moving upward along the supply curve
C. shifting the supply curve to the right
if wine and cheese and complements, than an increase in price of wine will
A. cause an increase in the price of chees
b. cause a decrease in the demand for wine
c. cause less cheese to be demanded at each price
d.cause an rightward shift in the demand curve for cheese
C. cause less cheese to be demanded at each price
if both supply and demand increase simultaneously, the equlibrium
a. price must rise and the equlibrium quanity must fall
b. price must rise and the eqilibrium quanityty may either rise or fall
c. quanity must rise and the equalibrium price may either rise or fall
d.price must fall and the equilibrium quanity may either rise or fall
C. quanity must rise and equlibrium price may rise or fall
the price elasticity of deman measures the responsiveness of ____to price
a.quanity demanded
b.quanity supplied
c.income
d.outcome
A. quanity demanded
When the price of elasticity of deman for a good is greater than 1, we say that the demand is ______. Demand is said to be______ when the elasticity is less then _____.
a.elastic, inelastic, -1
b.elastic, inelastic, 1
c.inelastic, elastice,1
d inelastic, elastic, -1
b. elastic, inelastic, 1
the economic measurment of the amount of pleasure a person gets from the consumption of goods and services is called______.
a. Satisfaction
B. Use
C. pleasure
D. Utility
D. Utility
_____ is the additional utility gained from consuming one extra
A.Marginal utility
B.Consumption
C.satisfaction
D. value
A.marginal utility
The economic equivalent of the statement, "you can have too much of a good thing" is _______.
A. constant marginal utility
B.increasing marginal utility
C. diminising marginal Utility
D. Marginal utility
c. dininishing marginal utility
the statifaction that person receives from the consumption fo goods is called his or hers
a. budget constraint
b.consumer surplus
c. income
d.utlity
D. Utility
to find the market demand curve from teh individual demand curves, one
A. adds up the marginal benefits of the individuals at each quanity
b.adds up the budget constraints of the individuals
C. considers only those individuals who are buying at the current price
D. adds up the quantities demanded by the individual at each price
d. adds up the quanitities demanded by the individual at each price
the additional output created by addding one more worker to the production of that good is called the _____ of labor
a. diminishing reterns
b.fixed cost
c.marginal cost
d.marginal product
d. Marginal Product
tom is the owner of bif secrets cookie shoppe. her was the formerly an economist for the fedral reserve board, where he earned a salary of $100,000 per year. Currently, he pays himself $25,000 for baking cookies, and the cookie shop is producing accounting profits of $85,000. The shop is earning a positive profit.
A. True
B. False
A. True
_____ are the sum of_____ and _______.
a. marginal costs(mc), fixed costs(FC), variable costs(VC)
b. Total costs(TC0, fixed costs(FC), variable costs (VC)
c. fixed costs (fc), variable costs(VC), marginal costs(MC)
d. Variable costs (VC), fixed costs(FC), marginal costs(MC)
B. Total costs (TC), fixed costs(FC), variable costs(VC)
the general shape of the marginal cost is that it _____ and then_____.
A. Is horizontal, declines
B. is horizontal, rises
C. rises, declines
D. Declines, rises
D. Declines, rises
_______ occur when the long-run average total cost curve rises
a. economies of scale
b. constant returns to scale
c. increasing returns to scale
d. decreasing returns to scale
D. decreasing returns to scale
the shut down point occurs when
A. P>AVC
B. P=AVC
C. P<AVC
D. P=ATC
c. P<AVC
the long run average total cost curve is traced out by finding the midpoints of the upward-sloping portion of short run average total cost curves.
A.true
B. false
B. FAlse
graphically, the mc curve cuts through the atc curve at
a. the lost pint on the MC curve
b. the highest points on the MC curve
c. the lowest point on the ATC curve
D. the middle of the upward-sloping portion of hte total cost curve
c. the lowest point on the ATC curve
a competitive firm maximizes profit by finding the level of production at which
A. P=MC
B. P=ATC
C. ATC=MC
D. P<MC
A. P=MC
If, at the profit-maximizing quantity, profits are positive,
A. P<ATC
B. P>ATC
C. P<AVC
D. P=MC
B. P>AVC
in the short run, a firm should shut down when
a. production losses are less than fixed costs
b.only normal profits are earned
c. production losses exceed
d. fixed costs are zero
c. production losses exceed fixed costs
The entry or exit of firms in an industry affects
A. the industey supply curve
B. the industry demand curve
C. only a portion of that market
D. Only that firm
A, the industry supply curve
Normal profits
a. are equal to zero in the long run rqulibrium
b. are an explicit opportunity cost to the business
c. are an implicit opportunity cost to the business
d must be greater than zero to encourage entry
A. are equal to zero in the long-run equilibrium
Entry
A. Causes a decrease in supply
B.cause a decrease in demand
C. Causes an increase in demand
D. Causes an Increase in Supply
D. causes and Increase in supply
if economic profits are postive,
A. Firms exit the market
B. firms enter the market
C. Normal profits are zero
D. then P<ATC and P=MC
B. firms enter the market
Economic profits
a. can result only from an increase in demand
b. can result if ATC falls below the original market price
c.are an implicit opportunity cost to the owner
d. result if P=ATC
b. Can result if ATC falls below the original market price
in long-run equilibrium, economic profits
A. are positive
B. are negative
C. Are zero
D. depend on the industry
D. depend on the industry
In an oligopoly, there are only a few firms and a firms can control price, regaurdless of the actions of other firms in the industry.
A. true
B. False
B. False
In game theory, cooperative outcome is the
A. result of each firms acting in its own self-interest
b. likely to be achieved as an equilibrum
c. the outcome that yields the highest payoff to any player
d. the outcome that yeilds the highest total payoff
d. the outcome that yeilds the highest total payoff
when we compare a compertitive industry to a monopoly, we find that the price is_____ in a monoploy and that the quantity is _____
A. lower, higher
B. higher, lower
C. lower, equal
D higher, equal
B. high and lower
_____ occurs whena firm charges different customers different prices for the same good.
A. positive discrimination
b.negative discrimination
c.racial discrimination
d. price discrimination
D. price discrimination
Which of the following statements is false for a monopoly equlilibrium?
a. marginal revenue is less then or equal to price
b. economic profits are always greater then zero
C. price is greater then or equal to both marginal cost and marginal revenue
D. Marginal cost is equal to marginal revenue
B. economic preofits are always greater then zero
A monopoly can charge any price that it wishes without regaurd to the market or the demand for the good
A. true
B. false
B. False
In monopolisic competition, there is _______ entry adn exit from and industry and the firm faces a(n) _______ demand curve for its product.
A. NO horizonal
B. no, downward
C. easy, downward sloping
D. difficult, upward sloping
C. easy, downward sloping
In the short run , a monoplistically competitive firm will maximize profits where _______ equals_______
a. marginal revenue, marginal cost
b. marginal revenue, price
C. price, average total cost
d. price, marginal cost
A. Marginal revenue, marginal costs
In the long run, the profits of a monopolistically competitive firm are zero, as the average total cost curve is tangent to the demand curve
A. true
B. false
A. True
IN an oligopoly, there are only a few firms and a frim cna contaol price regaurdless of the action of other firms in the industry
A. true
B. False
B. False
in monopolistically competitive industry, the short-run profit-maximizing rule is
a. marginal revenue equal average cost
b. the same as the monopolist's
c. price equals marginal cost
d. marginal cost equals average cost
B. the same as the monopolist's
which of the following characteristics is common to both perfect competition and monopolistic competition.
A. average total cost is minized in the long run
b. MArginal revenue equals price
c. economic profits are zero in the long run
d. price equals marginal cost
c. economic profits are zero in the long run