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econ assigments

Terms in this set (35)

If a straight line has a positive​ slope, it means the line is-?- and that a change in the variable on the​ x-axis causes the variable on the​ y-axis to change in the -?-.
upward sloping, same direction
If a straight line has a negative​ slope, it means the line is
-?- and that a change in the variable on the​ x-axis causes the variable on the​ y-axis to change in the -?-.
downward sloping, opposite direction
When graphing two​ variables, the point at which the graph intersects the horizontal axis is called the
x- intercept
When trying to interpret the meaning of a​ graph, what information must be​ determined?
What variables are listed on the x​- and y​- axes

What each point on the graph represents

The units of measure for the graph
Betty Lou has a car washing and detailing business. She charges​ $20 to wash a​ car, a process that takes her 20 minutes and requires no help or materials. For car​ detailing, a process requiring 1​ hour, she charges​ $50 net of materials.​ Again, no help is required.
What do you suggest Betty Lou do to make the most efficient use of her​ resources?
Betty Lou should raise the price of car detailing or concentrate on washing cars.
In​ economics, investment refers to the creation of capital.
true
If Davey can produce candles at a lower opportunity cost than Rebecca then Davey definitely has​ ________ in producing candles relative to Rebecca.
a comparative advantage
The fundamental​ decision-making units in a market economy​ are:
firms—the
primary producing units in the economy.

households—the
consuming units in the economy.
When considering the circular flow of economic activity​, households supply resources​ (inputs) such that the resources supplied by the households may be thought of as being provided in individual markets.
Which of the following accurately describes this​ statement?
In the labor​ market, households earn wages by supplying labor to firms that demand it.
Firms​ ________ in output markets and​ ________ in input markets.
supply, demand
Households​ ________ in output markets and​ ________ in input markets.
demand, supply
Question content area

Mr. Hildago will experience a substantial increase in income when he accepts a new position at work. Even though the responsibilities of his new job are more​ taxing, he is excited to spend some of his higher income. Mr. Hildago knows that a good can be characterized as either a normal good or an inferior good and that whether he buys more or less of the good depends on whether or not the good is normal or inferior.
Consider how an increase in Mr.​ Hildago's income would impact his demand for a normal good.
When Mr.​ Hildago's income​ increases, his demand for a normal good -?-​, which shifts the demand curve to the -?-.
increases, right
normal goods
Goods for which demand goes up when income is higher and for which demand goes down when income is lower.
Inferior goods
Goods for which demand tends to fall when income rises.
A change in quantity demanded is caused by a change in the price of the product.
true
An increase in the price of a good causes a decline in demand for
its complements.
If you expect the price of gold to increase in the near​ future, your demand for gold today will increase.
true
For a normal​ good, a decrease in demand is represented as a
leftward shift of the demand curve.
A change in quantity demanded is reflected by a movement along an existing demand curve.
true
A demand curve shows the relationship between quantity demanded and the price of a good.
Which of the following are held constant when constructing a​ good's demand​ curve?​
Income

Tastes

Other prices
If any of these variables that are held constant​ change, it is viewed as a
shift of the demand curve
.
Consider the supply curve when thinking about the following supply​ change:
•
Cranberry production fell by over ten barrels
per acre.
Which of the following occurs as a result of this​ change?
In the
market for cranberry juice​,
the supply curve shifts to the
left.
The choice of how much to produce depends on a variety of factors. One of the most important factors is the cost of production. Two very important components of the cost of production are resource ​(input) prices and technology.
What happens to the supply curve if the costs of production fall because resource prices have decreased and available technology has made production less expensive​?
This change in costs causes supply to -?-. This is seen graphically as a -?- shift in the supply curve.
increase, rightward
The law of supply reflects the positive relationship between price and quantity of a good supplied.
true
Supply curves slope​ ________. Therefore, the slope of a supply curve is​ ________.
upward; positive
An increase in the price of inputs needed to produce a product​ will, ceteris paribus​, result in a
leftward shift of the supply curve.
A change in quantity supplied is reflected by a shift of the supply curve.
false
The market supply of a product is the sum of all the individual quantities of the product supplied at each price.
true
supply curve shows the relationship between quantity supplied and the price of a good.
Which of the following are held constant when constructing a​ good's supply​ curve?​ (Check all that apply.​)
Costs

The price of inputs

Production technology
If any of these variables that are held constant​ change, it is viewed as a

.
shift of the supply curve
The rent for​ 2-bedroom apartments in Detroit has fallen from an average of​ $796 in September 2014 to​ $717 in March 2015. Demand for​ 2-bedroom apartments in Detroit was falling during this period as well. This is hard to explain because the law of demand says that lower prices should lead to higher demand.
Do you agree or disagree with this​ statement?
Disagree. A leftward shift of the demand curve would result in a lower price and a lower quantity demanded.
Question content area
Part 1
Related to the Economics in Practice​: The Price Mechanism at Work for ShakespeareLOADING...
Many cruise lines offer​ 5-day trips. A disproportionate number of these trips leave port on Thursday and return late Monday. Why might this be​ true?
People booking these trips can take a long weekend and schedule vacation time for only three of the five​ days, missing less work than they would by traveling Monday through Friday.
B.
Since the supply of staterooms on an individual ship is​ fixed, the higher demand generated by the long weekend increases the equilibrium price that a cruise line is able to charge for these​ trips, increasing the​ per-passenger revenue the cruise line receives.
A price ceiling​ is:
a maximum price that sellers may charge for a​ good, usually set by government.
A price floor​ is:
a minimum price below which exchange is not permitted
A natural disaster that destroys a crucial input for a good will cause the-?- to shift left.
This will result in -?- in production of that good and -?- pressure on the price per unit.
supply of that good, a decrease, upward
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