final exam

A tradeoff exists between a clean environment and a higher level of income in that
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Terms in this set (39)
Macroeconomics is best described as the study ofeconomy wide phenomenaIf labor in Mexico is less productive than labor in the United States in all areas of production,both Mexico and the United States still can benefit from tradeWhich of these statements is not a normative statement (as opposed to a positive statement)?All the above are normative statementsnormative statements described how the world is, while positive statements prescribe how the world should be.falseWhich is the best statement about the roles of economists?In trying to explain the world, economists are scientists; in trying to improve the world, they are policymakersWhat is Sardi's opportunities cost of producing one bushel of corn?1.67 pounds of porkSardi has a comparative advantage in the production ofpork and tinaka has a comparative advantage in production of cornFor two individuals who engage in the same two productive activities, it is impossible for one of the two individuals tohave a comparative advantage in both activitiesby definition, imports aregoods produced abroad and sold domesticallyRegan grows flowers and makes ceramic vases. Jayson also grows flowers and makes ceramic vases, but Regan is better at producing both goods. In this case, trade couldbenefit both Jason and ReaganWhich of the following statements is true?buyers determine demand and sellers determine supplyWhich of the following is not a characteristic of a perfectly competitive market?All of the above are characteristics of a perfectly competitive marketTwo goods are substitutes if a decrease in the price of one goodreduces the demand for the other goodTwo goods are complements if a decrease in the price of one goodRaises the demand for the other goodthe negative relationship between price and quantity demandedall of the above are correcteach of the following is a determinant of demand exceptinput pricesThe law of supply states that, other things equal, when the price of a good raises, the quantity supplied of the goodfalseif a good is normal, then an increase in income will result inan increase in the demand for the gooda movement forward and to the right along a demand curve is calledincrease in quantity demandeda leftward shift of a supply curve is calleda decrease in supplyif the demand for a product decreases, we would expect equilibrium priceand equilibrium quantity to both decreaseA decrease in input costs to firms in a market will result ina decrease in equilibrium price and an increase in equilibrium quantitySuppose that demand for a good increases and, at the same time, supply of the good decreases. What would happen in the market for the good?equilibrium quantity would increase, but the impact on equilibrium price would be ambiguousWhich of the four panels represents the market for pizza delivery in a college town as we go from summer to the beginning of the fall semester?panel (a)which of the four panels represents the market for cars as a result of the adoption of new technology on assembly lines?panel (c)What is the equilibrium price and quantity of the Market Schedule?P= 12 Q=12A________________ will result if the price is set at $18Surplus of 16the law of supply states that, along the demand curve price and quantity have a ____________________ relationship.inversethe law of supply states that, along the supply curve, price and quanitiy have a _______________ relationshipdirect