American Economy Final

Card Set Information

Author:
Anonymous
ID:
187460
Filename:
American Economy Final
Updated:
2012-12-05 23:20:27
Tags:
american economy final
Folders:

Description:
american economy final
Show Answers:

Home > Flashcards > Print Preview

The flashcards below were created by user Anonymous on FreezingBlue Flashcards. What would you like to do?


  1. Price and quantity supplied are _____ related, and price and quantity demanded are _____ related.
    positively, negatively
  2. The next question refers to the following production possibilities curve for medical care and education.If the economy is at point G, it represents:
    an impossible point to reach with available resources.
  3. The next question refers to the following production possibilities curve for medical care and education.Point E represents:
    an efficient use of society’s resources.
  4. The next question refers to the following production possibilities curve for medical care and education.If the economy is at point C, the opportunity cost of 40 additional units of medical care will be:
    10 units of education forgone
  5. When the demand curve shifts to the left, we say that:
    demand has decreased.
  6. When we say “all other things equal” with regard to demand and supply,we mean that:
    factors other than price that could affect quantity demanded or supplied do not change.
  7. A neighborhood group initiates a “neighborhood watch” program. Elladoesn’t take part in the program, but she enjoys the greater security theprogram provides. Ella is a:
    free rider
  8. The best way of evaluating crime prevention programs from an economicperspective is to look at their:
    benefits and costs.
  9. We generally assume that legalization of drugs would ________ the supplyof drugs in the market.
    increase.
  10. Suppose that people find out that eating morebeef negatively impacts their health, leading them to decrease their demand for beef. As a result, the equilibrium price of beef ____ and the equilibrium quantity______.
    falls; decreases
  11. If the government were to tax legalized drugs, it would:
    decrease their supply and increase price.
  12. "Because of unseasonably cold weather, thesupply of lemons has substantially decreased." Thisstatement indicates that:
    the amount of lemons that will be available at various prices has declined
  13. An economic argument for the legalization of drugsis:
    drugs would no longer be as profitable for organized crime.
  14. If Maurice has a comparative advantage in theproduction of good X overKristen, then
     the opportunity cost of producing X for Maurice is lower than for Kristen
  15. The Long Island Railroad once asked the New YorkCommerce Commission for a 20% increase in its commuter rates. They argued thatdeclining revenues made this rate increase necessary. Opponents of the rateincrease contended that the railroad's revenues would fall because of the ratehike. It can be concluded that:
    the railroad felt that the demand for passenger service was inelastic and opponents of the rate increase felt it was elastic
  16. Assumethat the local government puts a rental ceiling of $400 on the housing marketbelow (click link for graph). What would be the effect?
    a shortage of 200 apartments.
  17. If  your demand for Coca-cola is elastic and the price falls, which of the following is most likely to occur?
    Your total expenditure on Coca-cola will increase
  18. A situation whereby one country can produce a good with lower opportunity costthan another country defines:
    comparative advantage.
  19. If looking at the market for belts, if thepopulation decreases at the same time that belt producers pay higher wages totheir factory workers even though their productivity hasn’t increased, then theequilibrium price _______ and the equilibrium quantity ________.  Assumeperfectly competitive markets.
    is indeterminate; decreases
  20. Producersof U.S. exported products may suffer when the United States imposes traderestrictions on imports because:
    all of the above
  21. U.S.trade restrictions on imports result in:
    all of the above.
  22. At $30 a case, consumers demand 200 cases ofbeer at the distributor.  When the price increases to $40 a case,consumers demand 170 cases of beer.  What is the price elasticity ofdemand (hint: use the formula given during recitation)?
    .45
  23. “ Asituation where the prices of a country’s exports decline relative to theprices of its imports” is the definition for:
    declining terms of trade.
  24. At $30 a case, consumers demand 200 cases ofbeer at the distributor.  When the price increases to $40 a case,consumers demand 170 cases of beer.  Demand for beer would be (hint: usethe formula given during recitation)?
    Inelastic
  25. In a two-country world consisting of the U.S. and Canada, a decrease in the value of the U.S. dollar means:
    all of the above
  26. Which of the following would most likely be astatement given by Jeannette Wicks-Lim with respect to the minimum wage?
    Wage rates are sticky and the labor market does not clear as do other competitive markets
  27. Which of the following statements most closelyrepresents the ripple effect as stated by Wicks-Lim?
    An increase in the minimum wage not only helpsthose who were previously below the minimum wage but also benefits workers whoare slightly above the minimum wage
  28. Whatdoes Joseph Stiglitz believe to be the primary reason for the lack of progressin the Doha Development Round?
    The refusal of the U.S. and Europe to do anything about their agricultural subsidies hurting farmers in the developing world.
  29. JackShilling argues that due to China’s intervention into the currency exchangemarket, the renminbi is undervalued relative the U.S. dollar by about
    40 percent
  30. Crusoe can collect 10 coconuts per day if he only collects coconuts, or 5 crabs perday if he only collects crabs.  Friday can collect 5 coconuts per day if he only collects coconuts, or 5 crabs per day if he only collects crabs. What is Crusoe’s opportunity cost for collecting an additional crab and what isFriday’s opportunity cost for collecting an additional coconut, respectively?
    2 coconuts ; 1 crab
  31. When drawing a market diagram for the labormarket, it is important to keep in mind what the supply and demand curvesrepresent.  With this said which of the following is correct?
    The demand curve represents firms/employers
  32. Harryproduces 2 balloon rides and 4 boat rides an hour. Harry could produce moreballoon rides but to do so he must produce fewer boat rides. Harry is ________his production possibilities frontier.
    producing on
  33. In the markets for Coca-Cola and Pepsi, assumethat the supply for Coca-Cola increases, the equilibrium price of Pepsi will______ and equilibrium quantity of  Pepsi will ______, ceteris paribus(hint: use two market diagrams, one for Coca-Cola and one for Pepsi)?
    decrease; decrease
  34. If there is an effective minimum wage pricefloor in effect, then which of the following answers best explains the marketdiagram:
    Quantity of labor supplied is greater thanquantity of labor demanded
  35. Whichof the following is more likely to encourage research into new technologies andlower cost methods of meeting environmental quality?
    performance standard
  36. Two reasons that the environmental movement developed in modern, industrializedcountries are that:
    pollution control is a luxury good, and the type of pollutants we have in modern timesare more toxic than pollutants used to be
  37. Which of the following answers most likely explains why a sugar tariff would be placed on foreign countries trying toexport their sugar into the US:
    The impact on US consumers is spread across many consumers and not as noticeable to each consumer, whereas the impact on US sugar producers is more concentrated
  38. Crusoe can collect 10 coconuts per day if heonly collects coconuts, or 5 crabs per day if he only collects crabs. Friday can collect 5 coconuts per day if he only collects coconuts, or 5 crabsper day if he only collects crabs.  Does Friday have an absolute advantagein collecting either good?
    no
  39. Crusoe can collect 10 coconuts per day if heonly collects coconuts, or 5 crabs per day if he only collects crabs. Friday can collect 5 coconuts per day if he only collects coconuts, or 5 crabsper day if he only collects crabs.  Does Friday have a comparativeadvantage in collecting either good.  And if so, in which one?
    yes- crabs

What would you like to do?

Home > Flashcards > Print Preview