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33 Cards in this Set
- Front
- Back
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Resources in the economy serve as |
only a and b are correct |
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which of the following economic concepts directly connects supply and demand |
value |
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moving from one point along a PPC to another point along the curve |
shows a different production combination |
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what is equilibrium price? |
$10 |
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what is equilibrium quantity? |
70 units |
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which of the following is correct if the price floor = $15 |
Qs=75 units and a surplus of 10 exists |
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which of the following is correct if the price ceiling = $15 |
P=$10 and Qd = Qs = 70 units |
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What part of a capitalistic economy answers the question, "what to produce"? |
private sector |
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Which of the following defines a command/socialist economy? |
public sector ownership of resources |
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pollution has a ------ externality associated with it, so the government should ------ the industry |
negative/tax |
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what is the difference between an increase in supply and an increase in quantity supplied? |
a quantity supplied increase is a movement along an existing supply curve, while an increase in supply is a shift in the entire curve |
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scarcity in economics means there are limited number of resources and |
people have unlimited wants |
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which of the following defines capitalism? |
private sector ownership of resources |
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which part of a mixed economy answers the economic question "what to produce" |
both public and private sector |
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using a PPC to represent the entire economy, which of the following is a true statement? |
current utility can only result from sacrificing capital for consumer items |
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a market informs producers and consumers through |
prices |
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why is a market considered efficient? |
equilibrium price clears away any surplus or shortage |
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decides to SUBSIDIZE the production of Nike golf balls |
supply would INCREASE |
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In the market for Nike golf balls what happens if consumers have an increasing price expectation concerning nike golf balls? |
demand would INCREASE |
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In the market for Nike golf balls what happens if bc of Tiger Woods more african americans are playing golf?
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demand would increase |
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In the market for Nike golf balls what happens if the American Medical Association announced that Nike golf balls reduces the risk of colon cancer?
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demand would INCREASE |
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In the market for Nike golf balls what happens if a surplus of Nike golf balls exist?
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no shift would occur to either supply or demand |
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In the market for Nike golf balls what happens if nike builds more production plants?
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supply would increase |
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In the market for Nike golf balls what happens if Nike gold balls are an inferior product and consumers experience a decrease in income?
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demand would increase |
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In the market for Nike golf balls what happens if the price of titleist golf balls increase? Nike and Titleist golf balls are substitutes
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demand would INCREASE |
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In the market for Nike golf balls what happens if the price of golf tees decrease. Golf tees and Nike golf balls are compliments
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demand would INCREASE |
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In the market for Nike golf balls what happens if the quantity supplied of Nike golf balls is less than the quantity demanded
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no shift would occur to either demand or supply |
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in the market for nike golf balls what happens if a scandal is uncovered concerning mike's use of child labor, creating negative publicity |
demand would decrease |
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in the market for nike golf balls what happens if new computer technology allows nike to produce golf balls at a lower cost? |
supply would increase |
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in the market for nike golf balls what happens if the union of nike golf ball workers successfully negotiates higher wages
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supply would decrease |
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in the market for nike golf balls what happens if nike golf balls are a normal product and consumers experience a decrease in income
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demand would decrease |
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a ceiling.. |
prevents a price from increasing, by being placed on the SHORTAGE portion of a market |
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a floor.. |
prevents a price from decreasing, by being placed in the surplus portion of a market |
