Micro Jeopardy Test 1, 2, 3

Front 1

The study of how society manages its scarce resources is known as this

Back 1

economics

Front 2

i can only of ford to purchase an iPad or my textbooks for the semester. This illustrates this principle of economics:

Back 2

people face tradeoffs

Front 3

this word describes how much a society can produce with its resources

Back 3

efficiency

Front 4

This word describes how evenly the benefits from using resources are distributed among members of society

Back 4

equity

Front 5

what I give up to get an item is known as this

Back 5

opportunity cost

Front 6

when a salesmen paid using a commission system make more sales than salesmen paid by the hour, an economist would say that his actions are consistent with this principle

Back 6

people respond to incentives

Front 7

trade can make these countries better off

Back 7

all countries

Front 8

when markets fail to produce efficient or fair outcomes this entity may be able to improve them

Back 8

government

Front 9

these to phenomena can lead to market failure

Back 9

externalities & market power

Front 10

adam smith said that this leads households & firms interacting in markets to desirable market outcomes

Back 10

invisible hand

Front 11

in order to make a complex world easier to understand, economists make these

Back 11

assumptions

Front 12

inputs to the production process are known by economists as these

Back 12

factors of production

Front 13

the buildings & machines used in the production process are known by economists as this

Back 13

capital

Front 14

this type of statement expresses opinion and often uses words like "ought" or "should"

Back 14

normative statements

Front 15

in an hour, i can grade two tests or answer 4 emails. this is my cost to grading one test:

Back 15

2 emails

Front 16

In a competitive market, this determines the quantity produced & price of a product

Back 16

buyers & sellers

Front 17

a movement downward and to the right along a demand curve is known as this

Back 17

increase in quantity demanded

Front 18

other things equal, when the price of a good rises, the quantity demanded of the good falls, and then the price falls the QD rises. This is known as:

Back 18

law of demand

Front 19

If tablet computers & networks are substitutes, then a higher price for netbooks will cause this in the market for iPads:

Back 19

increase in demand

Front 20

an increase in price gives producers an incentive to supply a larger quantity of a good, giving the supply curve this shape:

Back 20

upward sloping

Front 21

the unique point at which the supply and demand curves intersect is called this:

Back 21

equilibrium

Front 22

if the demand for a product increases, we would expect equilibrium price to do this

Back 22

increase

Front 23

when price is above equilibrium price, the market will have this

Back 23

surplus

Front 24

suppose that computers & printers are complementary goods. A decrease in the price of computers will cause the equilibrium price of printers to do this

Back 24

increase

Front 25

when an increase in income causes demand for a good to rise, we refer to the good as this

Back 25

normal good

Front 26

the willingness of consumers to buy less of a good as its price rises is known as this

Back 26

price elasticity of deman

Front 27

if a good is a luxury, its price elasticity of demand will be this

Back 27

elastic or greater than 1

Front 28

if a good is a necessity its price elasticity of demand will be this

Back 28

inelastic or between 0 & 1

Front 29

suppose you make and sell gourmet ice cream sandwiches. the demand for you good is elastic. how do you change your price to increase revenue?

Back 29

lower the price

Front 30

once you get a job after college, you go from buying six packages of ramen noodles a week to one. Your income elasticity of demand for ramen noodles is this:

Back 30

Negative

Front 31

if the cross-price elasticity of two goods is negative, the 2 goods are this

Back 31

complements

Front 32

when supply or demand is more elastic, the curve tends to be this

Back 32

flatter

Front 33

price elasticity of supply tends to do this in the long run

Back 33

increase

Front 34

suppose a new technology for the production of cell phones increases supply. If demand is relatively inelastic, this will happen to the revenue of cell phone producers

Back 34

decrease

Front 35

this is the formula for calculating price elasticity of demand

Back 35

percent change in quantity demanded divide by the percentage change in price

Front 36

in a free, competitive market, this is the mechanism for rationing goods.

Back 36

price

Front 37

when a price ceiling doesn't change the equilibrium quantity or price in a market, it is this

Back 37

non-binding

Front 38

a binding price floor causes this

Back 38

surplus

Front 39

a binding price floor in the market for labor is known as this

Back 39

minimum wage

Front 40

w binding minimum wage causes this

Back 40

unemployment

Front 41

The study of how the allocation of resources affects economic well being is know as this

Back 41

welfare economics

Front 42

the maximum amount that a buyer will pay for a good is called this

Back 42

willingness to pay

Front 43

the benefit that buyers receive from participating in a market is known as this

Back 43

consumer surplus

Front 44

i am willing to pay $60 for the perfect Halloween costumer. If I find one for $44, my consumer surplus is this

Back 44

$16

Front 45

Consumer surplus is measure by this part of a standard supply & demand graph

Back 45

the area above the market price and below the demand curve

Front 46

A sellers willingness to sell is passed on this

Back 46

their cost

Front 47

the amount a seller is paid minus their cost of production is known as this

Back 47

producer surplus

Front 48

the allocation of resources is efficient if and only if this is maximized

Back 48

total surplus

Front 49

the decisions of buyers and sellers that affect people who are not participants in the market create these

Back 49

externalities

Front 50

when the equilibrium price of shoes rises, PS increases because the sellers in the market receive a high price for their goods without a change in their cost and because of this

Back 50

new sellers enter the market

Front 51

the incidence of a tax is determined by this feature of supply and demand

Back 51

elasticity of demand and supply

Front 52

if the government removes a tax on a good, the price paid by buyers will do this

Back 52

decrease

Front 53

when the size of a tax is increased, this is the change in government revenue

Back 53

unknown or increases then decreases

Front 54

when the tax on a good is doubled, the deadweight loss of the tax does this

Back 54

quadruple

Front 55

this term refers to the effects that buyers & sellers of a good may have on bystanders

Back 55

externality

Front 56

this term refers to a curve which includes the private external costs of producing a good

Back 56

social cost curve

Front 57

goods with positive externalities tend to be this relative to the social efficient quantity

Back 57

under produced

Front 58

when the government mandates maximum levels of emissions for a factory, we categorize the policy as this

Back 58

command and control or regulation

Front 59

this is what we call a tax designed to internalize an externality

Back 59

Pigouvian or corrective tax/subsidy

Front 60

When can you prevent a person from consuming a good, it is this

Back 60

excludable

Front 61

A good that is excludable and rival in consumption is classified as this type of good

Back 61

private good

Front 62

a study, often undertaken by government agencies to determine whether a public good should be provided, is called this

Back 62

cost-benefit analysis

Front 63

economists typically prefer this class of solutions to resolve externalities

Back 63

market based solutions

Front 64

this type of good is typical overused without government intervention

Back 64

common resource good

Front 65

The primary goal of any firm is to maximize this

Back 65

profit

Front 66

If belmont enrolls 10 students at a tuition rate of $500 per student, and cost is $400 per student, their revenue is this:

Back 66

$5,000

Front 67

A cost that does not require an outlay of money is known as this

Back 67

implicit cost

Front 68

accounting profit equal total revenue minus this

Back 68

explicit cost

Front 69

in the short run, capital inputs are fixed costs but labor inputs are this

Back 69

variable

Front 70

we use this phrase to describe a situation in which each successive unity of a variable input increases production by less

Back 70

diminishing marginal product

Front 71

total cost minus fixed cost gives you this

Back 71

variable cost

Front 72

ATC intersects MC at this point

Back 72

minimum ATC

Front 73

When a firm is operating at efficient scale it is operating at this

Back 73

minimum ATC

Front 74

LRATC will, at low levels of output, decrease as output increases because of this:

Back 74

"gains from specialization of inputs"

Front 75

Buyers & sellers are price takers in this type of market

Back 75

perfectly competitive

Front 76

In a perfectly competitive market, price is the same as this

Back 76

marginal revenue

Front 77

in order to maximize profit, a firm operation in a competitive market chooses the quantity where marginal revenue equals this

Back 77

marginal cost

Front 78

when firms in a competitive market are earning profit in the short run, this will occur in the long run

Back 78

new firms will enter the market

Front 79

a firm will shut down in the short run if this is true

Back 79

P<AVC

Front 80

The demand curve faced by a monopolist has this shape

Back 80

downward sloping

Front 81

patents, copyrights, ownership of a key resource are examples of these

Back 81

barriers to entry

Front 82

when a firm's act is always downward sloping, it is known as this

Back 82

natural monopoly

Front 83

because a monopolist must lower is price in order to sell another unit of its product, its marginal revenue has this relation to price

Back 83

less than or below

Front 84

the business practice of selling the same product to different consumers for different prices is known as this

Back 84

price discrimination

Front 85

product differentiation causes the demand curve faced by a monopolistically competitive firm to have this shape

Back 85

downward sloping

Front 86

firms that sell a differentiated product in a competitive market have an incentive to do this

Back 86

advertise

Front 87

in an oligopoly, each firm's profits depend not only on how much output they produce but also on this:

Back 87

the other firm's output

Front 88

an agreement among firms in a market about quantities to produce or prices to charge is known as this

Back 88

collusion

Front 89

in order to reduce the inefficiency associated with oligopoly markets, public policy should promote this

Back 89

increase competition