Macro Exam One

The flashcards below were created by user cheergurl48 on FreezingBlue Flashcards.

  1. When the government implements programs such as progressive income tax rates, what is likely to come?
    Equality is increased and efficiency is decreased
  2. Which of the following is not an example of the opportunity cost of going to school?
    The money a student spends on rent
  3. Evidence indicates that seat belts lead to...
    Fewer deaths per automobile accidents
  4. Scarcity exists because
    Human wants are greater than what can be produced
  5. The fact that different countries experience different standards of living is largely explored by differences in those countries
    Productivity level
  6. In the short run, which of the following rates of growth in the money supply is likely to lead to the highest percent of unemployment in the economy?
  7. A company that formerly pro-
    Inadequate enforcement of property rights
  8. An example of an externality is the impact
    Pollution from a factory on the health of  people in the vicinity of the factory
  9. Communist countries worked under the premise that
    Central planners were in the best position to determine the allocation of scarce resources in the country
  10. The reason that China abandoned the socialist economy of Mao and instead partly based a capitalist society is
  11. The term incidence refers to
    The distribution of the tax burden between buyers and sellers
  12. The minimum wage does not apply to
    Unpaid internships
  13. To say that a price ceiling is nonbinding is to say that the price ceiling
    is set above equilibrium price
  14. If a labor market is characterized by a labor union, wages will be ___, and employment will be ___, than in a purely competitive market model
    Higher, lower
  15. Under a price system, firms are forced to choose the lest cost combination of resources because of
    Competition from other firms in the market
  16. In a pure market system (capitilist) the distribution of goods, services, and resources, is dependent upon
    Scarcity determined prices and income determined by productivity
  17. An example of a perfectly competitive market would be
    soybean market
  18. A market demand curve shows how the total quantity demanded of a good varies as
    price varies
  19. Suppose you are evaluating automobile market. Auto manufacturers discover a new engine that is more efficient and actually less costly to produce. We would expect that
    The supply for auto had increased and price has fallen
  20. If the highest price that consumers will pay for a good is less than the lowest cost at which a good can be produced then
    the good will not be produced by the private sector without subsidies
  21. refer to table 1 whose demand does not obey the law of demand
  22. today's supply curve for gasoline could shift in response to
    a change in the expected future price of gasoline the supply curve shifts in the opposite direction
  23. Refer to figure one
    decrease in quantity supplied
  24. rent control
    serves as an example of a price ceiling
  25. over time, having shortages caused by rent control
    increase, because the demand for and supply of housing are more elastic in the long run
  26. suppose the equilibrium price a physical exam by a doctor is $200 and the gov imposes a price floor of $250 per physical; as a result of the price floor
    the quantity demanded of physicals decreases and quantity of physicals doctors want to give increases
  27. idk
  28. data indicate that government agricultural price supports have
    led to food surpluses
  29. the price paid by buyers after the tax is imposed is
Card Set
Macro Exam One
macro exam one
Show Answers