Econ, for final

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the line representing that relationship on a graph to shift

if we are considering the relationship between two variables and release one of the other-things-equal assumptions, we would expect...

50 fewer pizzas will be purchased per week for every $1 increase in price

the amount of pizzas that consumers want to buy per week is reflected in the equation P = 15 - .02Q(d), where Q(d) is the amount of pizzas purchased per week and P is the price of pizzas. on the basis of this information we can say that...

they measure marginal changes

slopes of lines are especially important in economics because...

achieving points beyond the production possibilities curve through international specialization and trade

suppose that scoobania, which has full employment, can obtain 1 unit of capital goods by sacrificing 2 units of consumer goods domestically, but can obtain 1 unit of capital goods from another country by trading 1 unit of consumer goods for it. this reality illustrates...

an increase in the average skill level of all occupational groups

what could never immediately or eventually lead to an inward shift of a nation's production possibilities curve?

comparing marginal benefits and marginal costs

the point on the production possibilities curve that is most desirable can be found by...

other things equal, the more capital goods a nation produces, the greater will be its growth rate

what is a correct fact for a nation that is producing only consumer and capital goods?

productive resources are limited

according to Emerson: "Want is a growing giant whom the coat of Have was never large enough to cover." According to economists, "Want" exceeds "Have" because...

opportunity costs

joe sold sold coins for $1000 that he bought a year ago for $1000. He says, "at least i didn't lose any money on my financial investment." His economist friend point out that in effect he did lose money, because he could have received a 3 percent return on the $1000 if he had bought a bank certificate of deposit instead of the coins. The economist's analysis in this case incorporates the idea of...

choices that are made in seeking the best use of resources

the study of economics is primarily concerned with...

a comparison of marginal benefits and marginal costs in decision making

the economic perspective entails

implies that, for most people, the marginal benefit of reading a second newspaper is less than the marginal cost

even though local newspapers are very inexpensive, people rarely buy more that one of them each day. this fact implies...

scarcity and opportunity costs

in deciding whether to study for an economics quiz or go to a movie, one is confronted by the ideas of...

emphasize basic economic relationships by purposefully simplifying the complexities of the real world

economic models...

both statements are positive

Brinley says that "Gas prices are rising because there aren't enough oil refineries." Katies argues that "Gas prices are rising because of the growing demand for gasoline from China and India." We can conclude that...

capital resources

Autos owned by a car rental firm; computers at the car rental agency, and the vans that shuffle rental customers to and from the airport are all examples of...


assume the price of product Y (vertical axis) is $75 and the price of product X (horizontal axis) is $15. also assume that money income is $150. the absolute value of the slope of the resulting budget line is...

an economic system

a particular set of institutional arrangements and a coordinating mechanism used to respond to the economizing problem is considered...

property rights

what is a fundamental characteristic of the market system?

gives direction to the market system

the pursuit of self-interest...

for exchange to occur each seller must have a product that some buyer wants

the coincidence-of-wants problem associated with barter refers to the fact that...

reallocate resources from less desired to more desired users

from society's point of view the economic function of profits and losses is to...

buyers determine what will be produced based on their "dollar votes" for the goods and services offered by sellers

consumer sovereignty means that...

the desires of resource suppliers and producers to further their own self-interest will automatically further the public interest

describe the invisible-hand concept

workers, managers, and entrepreneurs could not personally gain by responding to shortages or surpluses or by introducing new and improved products

the incentive problem under communist central planning refers to the idea that...

the determination of product and resource prices is not explained

what is a limitation of the simple circular flow model?

adverse effects in one market can spill over into other markets, magnifying the effect on the economy

the circular flow model implies that...

private property encourages people to consider the alternative uses of their resources and select those that provide the most rewards

according to economist Donald Boudreaux, the world's tens of billions of individual resources get arranged productively because...

consumer sovereignty

in 1975, mcdonald's introduced its egg mcmuffin breakfast sandwich, which remains popular and profitable today. this longevity illustrates the idea of...

producers would not react because no price or profit signals occurred

if products were in short or surplus supply in the Soviet Union...

coordination problem under central planning

"Because the outputs of many industries are the inputs to other industries, the failure of any single industry to fulfill the output quantities specified in the central plan caused a chain-reaction of adverse repercussions on production." This quotation best identifies the...

through the profit potential that encourages development of new technology

the market system's answer to the fundamental question "How will the system promote progress?" is essentially...

encourage cooperation by improving the chances of mutually agreeable transactions

property rights are important because they...

government ownership of major industries

what is not a characteristic of the market system?

there is an active role for government, even in a market system

the present of market failures implies that...

enterprises resisted innovation in fear that their production targets would be raised

innovation lagged in the centrally planned economies because...

consumers will substitute other products for the one whose price has risen

an increase in the price of a product will reduce the amount of it purchased because...

the income effect

when the price of a product falls, the purchasing power of out money income rises and thus permits consumers to purchase more of the product. this statement describes...

substitute goods and the higher price for oil increased the demand for natural gas

in 2007 the price of oil increased, which in turn caused the price of natural gas to rise. this can best be explained by saying that oil and natural gas are...

bicycles are normal goods

an economist for a bicycle company predicts that, other things equal, a rise in consumer incomes will increase the demand for bicycles. this prediction is based on the assumption that...

shift to the right

if the price of product L increase, the demand curve for close-substitute product J will...

inferior goods

college students living off-campus frequently consume large amounts of ramen noodles and boxed macaroni and cheese. when they finish school and start their careers, their consumption of both goods frequently declines. this suggest that ramen noodles and boxed macaroni and cheese are...

demand for A will increase and the amount of B demanded will increase

if products A and B are complements and the price of B decreases the...

in the second statement

"In the corn market, demand often exceeds supply and supply sometimes exceeds demand," "The price of corn rises and falls in response to changes in supply and demand." In which of these two statements are the terms demand and supply being used correctly?

reflects the amounts that producers will want to offer at each price in a series of prices

the law of supply...

the amount of oranges that will be available at various prices has declined

because of unseasonably cold weather, the supply of oranges has substantially decreased. this statement indicates that...

is above the equilibrium level

if a product is in surplus supply, its price...

the amount producers want to sell is equal to the amount consumers want to buy

the market is in equilibrium if...

decrease, quantity demanded will increase, and quantity supplied will decrease

assume in a competitive market that price is initially above the equilibrium level. we can predict that price will...

producing the combination of goods most desired by society

allocative efficiency is concerned with...

equilibrium will fall

if supply increases and demand decreases, will equilibrium rise or fall?

if demand rises and supply rises

when will the effect on equilibrium price be dependent on the magnitude of the shifts in supply and demand?

increase equilibrium price and quantity if the product is a normal good

with a downsloping demand curve and an upsloping supply curve for a product, an increase in consumer income will...

increases in the supply of computer memory have exceeded increases in demanded

over time, the equilibrium price of a gigabyte of computer memory has fallen while the equilibrium quantity purchased has increased. based on this we can conclude that...

demand for clothing has grown faster that the supply of clothing

suppose that in the clothing market, production costs have fallen, but the equilibrium price and quantity purchased have both increased. based on this information we can conclude that...

set above equilibrium

the price floor is...

set below equilibrium

the price ceiling is...

substitute goods and the higher price for oil increased the demand for natural gas

in 2007 the price of oil increased, which in turn caused the price of natural gas to rise. this can best be explained by saying that oil and natural gas are...

equilibrium GDP

that level of output who's production will create total spending just sufficient to purchase that output

profit divided by the cost of borrowing

how do you find the expected rate of returns?

the relationship is inverse

what is the relationship between interest rates and investments?

things that will actually be used to produce something

investment in economics consists of...

there is a change in taxes; otherwise they're opposites

only time both schedules shift in the same direction is when...

household borrowing, expectations, and real interest rate

3 non-income determinants of household saving are...

magnifies changes in spending into larger changes in output and income

the multiplier effect:

investment, net exports, and government spending

The multiplier applies to:

a change in spending will change aggregate income by a larger amount

The multiplier effect indicates that:

measures the value of final goods and services produced within the borders of a given country during a given period of time

real GDP, or real gross domestic product...

totals the dollar value of all goods and services produced within the borders of a given country using their current prices during the year that they were produced

what is nominal GDP

the state a person is in if he or she cannot get a job despite being willing to work and actively seeking work

what is unemployment?

an increase in the overall level of prices

what is inflation?

when output per person rises

what is modern economic growth

unexpected changes in the demand for goods and services

what are demand shocks

unexpected changes in the supply of goods and services

what are supply shocks


The recessionary expenditure gap associated with the recession of 2007-2009 resulted from

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