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37 Cards in this Set
- Front
- Back
All of the following exemplify an improvement in technology affecting supply, except:
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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
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False
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Substitution in production is a determinant of _____
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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:
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Productive efficiency
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Government-controlled prices in the form of proce ceilings and price floors do which of the following:
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Distort resources allocation
Stifle the rationing function of prices Produce negative side effects |
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Improvements in technology are a determinant of:
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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:
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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
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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?
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Allocative efficiency
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Which of the following serve as complementary goods or services to your economics course?
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This Learnsmart tutorial
A note taking device |
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T/F: A price at or above the price floor is illegal?
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False
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Government controlled prices cause:
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Surpluses
Shortages Negative side effects distortions in resource allocation |
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T/F: Consumer expectations are a determinant of supply
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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.
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price
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Which of the following refers to demand?
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The buyer side of any market
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The supply curve is _____ sloping curve
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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.
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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
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True
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_____ in supply while holding demand constant results in an increase in equilibrium price, but a decrease in equilibrium quantity.
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A decrease
A shift leftward |
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Quantity demanded is illustrated on the _____ axis, while price is illustrated on the _____ axis.
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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
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government
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The demand curve measures quantity _____ on the horizontal axis and _____ on the vertical axis
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demanded, price
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Choose all of the following that will cause a change in supply, not quantity supplied
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Technology
Producer Expectations Number of sellers |
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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:
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Demand
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In order to construct a demand curve and demonstrate the law of demand, one would have to:
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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?
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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.
A change in the number of buyers will increase or decrease demand an shift the demand curve to the right or left respectively. A change in the price of related good will increase or decrease demand and shift the demand curve to the right or left respectively A change in consumer expectations will increase or decrease demand and shift the curse to the right or left respectively. |
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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 _____.
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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?
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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?
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Complementary goods
Substitute goods |
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A shortage results from an excess of quantity _____
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demanded
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An unfavorable change in consumer tastes and preferences for a product will _____ demand, shifting the demand curve to the _____
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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 _____
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benefit, cost
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Which of the following describes the law of demand?
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All other things being equal, as price increases, quantity demanded decreases
All other things being equal, as price decreases, quantity demanded increases |
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A demand schedule illustrates the relationsip between price and quantity in a _____ format, whereas the demand curve is a _____ representation.
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tabular ; graphical
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A decrease in demand while holding supplly constant results in:
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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.
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False
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The only factor that causes a movement along the supply curve is:
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price
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