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test 1 micro
| Question | Answer |
|---|---|
| as price increases, additional suppliers are willing to produce a commodity | true |
| economists use the term capital to describe that factor of production that includes human-made resources such as factories, buildings, machinery and tools | true |
| any point on or outside the PPF is attainable | false |
| economic efficiency and income equality are often conflicting goals in an economy | true |
| the corporate income tax is the single largest source of revenue for the federal government | false |
| only a market economy must answer the questions of what goods to produce, how to produce them, and for whom to produce them. | false |
| an optimal decision is one that chooses the most desirable from among all possibilites that are available | true |
| the factors of productions include all goods and services produced in an economy | false |
| a demand curve shows the relationship between price and quantity demanded only so long as all other things are held constant | true |
| a recession is a period of time in which real GDP falls | true |
| externalities affect only the buyer and seller involved in an exchange | false |
| market economies are constrained by scarcity; only planned economies have that problem | false |
| when price is above the equilibrium level, suppliers offer more than demanders wish to buy | true |
| an open economy is one in which exports and imports constitute a large share of GDP | true |
| the federal government receives most of its revenue from personal income taxes and payroll taxes | true |
| in terms of efficiency, any point on a production possibilities frontier is a good another | true |
| a change in the income of buyers will normally change demand | true |
| one effect of market intervention is resource misallocation | true |
| antitrust laws are designed to promote competition | true |
| a decrease in the unemployment rate will shift the PPF outward from the origin | true |
| Americans antitrust laws are used to protect competition against possible encroachment-by monopoly. this is an exampled of government as | regulator of business |
| the imposition of price ceilings on a market often results in | the diversion of income towards black-market suppliers |
| which of the following characteristics of a PPF indicates that tradeoffs must be made? | the downward slope |
| the united states is a fairly good example of | a mixed economy |
| the price of gasoline has risen and the quantity sold has fallen. This was likely caused by | a rise in the price of crude oil |
| how will a decrease in price tend to affect supply? | supply will not change |
| if the price of oil, a close substitute for coal, increases then the | demand curve for coal will shift to the right |
| the government redistributes income to the poor, primarily through | both a and b, progressive taxes and transfer payments |
| the united states produces both automobiles and computers more efficiently than Mexico. Nevertheless, it is possible that both nations would benefit froom trade in these items. The reason for this is | the law of comparative advantage |
| an optimal decision is one that chooses | the most desirable alternative among the possibilities permitted by the resources available |
| we observed that the price of a good rises and the quantity purchased also rises. everything else being equal, it is consistent that | income rose |
| the quantity of newspapers sold will decline if | newsprint becomes more expensive |
| employment discrimination is a source of | economic inefficiency |
| the payments to owners of capital include | interest and profits |
| who tends to benefit from the sugar price supports | producers of sugar |
| when a firm or economy is operating efficiently, it is operating | on its production possibilites frontier |
| the price of one good produced by a multi product industry rises. for another good produced by that industry | the supply curve will remain constant |
| which of the following illustrates government acting as a referee? | enforcing contract provisions between buyer and seller |
| if the demand for steak shifts to the right, the most likely explanation is that | consumer income has risen |
| which of the production accounts for the highest percentage of the income that the production process generates in the US? | labor |
| the price for labor is the wage rate. what happens to the quantity of labor supplied if wages increase? | it increases |
| when government defines and enforces property rights, this is an example of government as | referee |
| how much the quantity of a good traded changes after a shift of the supply curve depends on | all of the above are correct |
| at an equilibrium price, quantity demanded | equals quantity supplied |
| professional basketball teams in the united states use only wooden bats. if aluminum bats were permitted, the likely result would be a | change in the quantity supplied of aluminum bats |
| if price rises, what happens to quantity demand for a product | it decreases |
| how does rent control tend to cause persistent imbalances in the market for housing | quantity demanded exceeds quantity supplied but price cannot rise to remove the shortage |
| how do legal controls on prices lead to corruption | all of the above are correct |
| we observed that the price of a good rises and the quantity purchased also rises. everything else being equal, it is consistent that | income rose |
| why do price ceilings tend to cause persistent imbalances in the market | quantity demanded exceeds quantity supplied but price cannot rise to remove the shortage |
Created by:
sommerpow