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31 Cards in this Set
- Front
- Back
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Which of the following is not correct? i. A surplus puts downward pressure on the price of a good. ii. A shortage put upward pressure on the price of a good. iii. There is a surplus or shortage at equilibrium. |
iii. is not correct |
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What are the factors of production? |
Labor, capital, land, and entrepreneurship |
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When a country's production possibility frontier shifts outward over time, name two outcomes that country can experience.. |
increase economic growth, decreasing employment... answer varies |
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Moving between two points on a PPF, a country gains 6 automobiles and forgoes 2 trucks. The opportunity cost of 1 truck is gaining how many automobiles? |
3 automobiles |
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Moving between two points on a PPF, a country gains 12 desktops and forgoes 3 laptops. The opportunity cost of 1 desktop is |
A. 1/4 laptop b. 1/2 desktop c. 1/4 desktop d. none of the above |
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The characteristic from which all economic problems arise is |
scarcity |
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A family goes to a carnival and realizes the more ride tickets they purchase the less each additional ticket costs. The cost is referred as |
a. diminishing marginal cost B. marginal cost c. marginal benefit d. diminishing marginal benefit |
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Other things remaining the same, quantity of a good or service demanded will increase if the price of the good or service |
a. rises B. falls c. does not change d. none of the above |
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Minimum wage is an example of a(n) |
a. ability to pay principle b. rent ceiling C. rent floor d. rent control |
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In low income public housing in order to keep rent from skyrocketing the government can impose a |
a. ability to pay principle B. rent ceiling c. rent floor d. rent control |
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Prescription drugs for heart attacks would most likely be viewed as having what type of demand |
a. elastic B. inelastic c. undeterminable d. none of the above |
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If substitutes for a product become readily available, cheaper and better quality it is most likely that the old product would be considered to take on what type of demand |
A. elastic b. inelastic c. undeterminable d. none of the above |
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If the price of gasoline decreases, what will most likely happen to the quantity demanded of gasoline |
A. it will most likely increase b. it will decrease substantially c. it wont decrease that much d. all are options that could happen |
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If a country is concerned about increased competition from importing, one main tool at their discretion is to increase the imported price of the product by which of the following |
a. quota b. voucher c. subsidy D. tariff |
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If China is worried about the amount of large trucks being imported into their country, it is likely they will impose a |
A. quota b. voucher c. subsidy d. tariff |
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Walmart is known for lower prices which most competitors cant duplicate, so they are said to have a |
a. complete advantage B. comparative advantage c. consistent advantage d. continual advantage |
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With the continual increased taxes levied on cigarettes the amount of that tax burden that is paid by the buyer or the seller is referred to as |
a. elastic b. inelastic C. tax incidence d. none of the above |
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What affects the change in demand |
a. substitutes available b. income c. number of buyers D. all the above |
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The ................. states that the requirement that taxpayers with a greater ability to pay bear a greater share of the taxes |
a. benefit principle b. ability to pay principle C. vertical equity d. none of the above |
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The proposition that people should pay taxes according to how easily they can bear the burden |
a. benefits principle B. ability to pay principle c. vertical equity d. none of the above |
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India is a country that has a huge number of qualified manpower in the IT sector so they outsource their labor to other companies thru-out the world, this would be known as |
A. india exporting their labor b. india importing their labor c. india imposing tariffs on other companies d. india imposing quotas on other companies |
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A farmer annually produces 10K bushels of wheat and that is where he is making maximum profit. The government needs him to produce 25K bushels instead so to entice him to produce the additional 15K bushels they will likely |
a. offer him a tariff b. offer him an embargo c. offer him a voucher D. offer him a subsidy |
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If the marginal benefit of having one more cupcake exceeds the marginal cost, you will |
a. need more info b. not buy it c. be unable to choose between buying it or not D. buy it e. none of the above |
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Excludable or Non Excludable A one of a kind Van Gogh painting |
excludable |
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Excludable or Non Excludable A public swimming pool |
Non excludable |
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Excludable or Non Excludable A private swimming pool |
Excludable |
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Excludable or Non Excludable City Police Department service |
Non Excludable
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Excludable or Non Excludable The internet |
Non Excludable |
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Excludable or Non Excludable Tickets to a Taylor Swift concert |
Excludable
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Excludable or Non Excludable An invite only party |
Excludable
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Excludable or Non Excludable Fish in Ocean |
Non Excludable |
