# ECON EXAM 1

A grocery store sells a bag of potatoes at a fixed price of​ \$2.30. Which of the following is a term used by economists to describe the money received from the sale of an additional bag of​ potatoes?
A. marginal revenue
B. gross earnings
C. pure profit
D. marginal costs
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Terms in this set (28)
If the price of grapefruit​ rises, the substitution effect due to the price change will cause

A. a decrease in the demand for​ oranges, a substitute for grapefruit.
B. a decrease in the quantity of grapefruit supplied.
C. a decrease in the quantity of grapefruit demanded.
D. a decrease in the demand for grapefruit.
A demand curve shows
A. the relationship between the price of a product and the total benefit consumers receive from the product.
B. the willingness of consumers to buy a product at different prices.
C. the relationship between the price of a product and the demand for the product.
D. the willingness of consumers to substitute one product for another product.
What is the difference between an​ 'increase in​ supply' and an​ 'increase in quantity​ supplied'?

A. An​ "increase in​ supply" means the supply curve has shifted to the right while an​ "increase in quantity​ supplied" refers to a movement along a given supply curve in response to an increase in price.
B. There is no difference between the two​ terms; they both refer to a shift of the supply curve.
C. An​ "increase in​ supply" means the supply curve has shifted to the right while an​ "increase in quantity​ supplied" means at any given price supply has increased.
D. There is no difference between the two​ terms; they both refer to a movement along a given supply curve.
In​ 2004, hurricanes destroyed a large portion of​ Florida's orange and grapefruit crops. In the market for citrus​ fruit,
Part 2
A.
the supply curve shifted to the left resulting in an increase in the equilibrium price.

B.
the demand curve shifted to the left resulting in a decrease in the equilibrium price.
C.
the supply curve shifted to the right resulting in an increase in the equilibrium price.
D.
the demand curve shifted to the right resulting in an increase in the equilibrium price.
In​ February, market analysts predict that the price of titanium will rise in March. What happens in the titanium market in​ February, holding everything else​ constant?
Part 2
A.
The quantity of titanium demanded and the quantity of titanium supplied both increase.
B.
The supply curve shifts to the left.
C.
The supply curve shifts to the right.
D.
The demand curve shifts to the left.
The decision about what goods and services will be produced in a market economy is made by
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A.
lawmakers in the government voting on what will be produced.
B.
producers deciding what society wants most.
C.
consumers and firms choosing which goods and services to buy or produce.
D.
workers deciding to produce only what the boss says must be produced.