Economics 101 petereater

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Economics 101 petereater
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2011-03-08 22:59:04
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Economics peatereater matt mid term
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Economics 101 mid term
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  1. the word "utility" means:
    pleasure and satisfaction
  2. study of economics is primarily based on
    choices that are made in seeking the best use of resources
  3. the term "ceteris paribus" means:
    other things equal
  4. the economizing problem is
    the need to make choices because economic wants exceed economic needs
  5. the production possibilities curve illustrates the basic principle that:
    if all resources of an economy are in use, more of one good can be produced only if less of another is
  6. which of the following is a distinguishing feature of a market system?
    wide-spread private ownership of capital
  7. competition means that
    there are independantly acting buyers and sellers in each marke
  8. "consumer sovereignty" means that:
    buyers determine what will be produced based on their "dollar votes" for the goods and services offered by sellers
  9. refer to diagram,. Flow (1) represents:
    wage, rent, interest, and profit income.
  10. Refer to above diagram, Flow(2) represents:
    land, labor, capital, entrepreneurability.
  11. The law of demand states that:
    price and quantity demanded are inversely related.
  12. economists use the term "demand" to refer to:
    schedule of various combinations of market prices and amounts demanded.
  13. which of the following would NOT shift the demand curve for beef?
    a reduction in the price of cattle feed.
  14. if two goods are compliments:
    a decrease in the price of one will increase the demand of another.
  15. if Z is an inferior good, an increase in money income will shift the:
    demand curve for Z to the left.
  16. If consumers are willing to pay a higher price than previously for each level of output, we can say that, the following has occured:
    an increase in demand.
  17. Refer to the above data, equlibrium price will be:
    $2.
  18. Refer to the above data, if the price in this market was $4:
    farmers would not be able to sell all their wheat.
  19. refer to the above diagram. the equlibrium price and quantity in this market will be:
    $1.00 and $200.
  20. Refer to the above diagram. A surplus of 160 units would be encountered if price was:
    $1.60
  21. Refer to the diagram. A shortage of 160 units would be encountered if price was:
    $.50
  22. Refer to the above diagram. A government-set price floor is best illustrated by:
    Price C.
  23. Refer to the above diagram. A government-set price ceiling is best illustrated by:
    Price A.
  24. If a legal ceiling price is set above the equilibrium price:
    neither the equilibrium price nor the equilibrium quantity will be affected.
  25. the personal distribution of income refers to the:
    way income is distributed among specific households or spending units.
  26. The functional distribution of income refers to the:
    distribution of income to basic resource classes, that is, wages, rents, interests, and profits.
  27. Since 1941 personal taxes have:
    risen both absolutely and as a percentage of personal income.
  28. a firm that has a singlr product but owns many plants in many stages of production process, for example a steel producer that owns iron ire mines and rolling mills - best illustrates a:
    vertically integrated firm.
  29. the advantages of the corporate form of business include:
    the ability to raise financial capital by selling stocks and bonds.
  30. Nonrivalry and nonexecutability are the main characteristics of:
    public goods
  31. shocks to the economy occur when:
    actual economic events do not match what people expected.
  32. When demand shocks lead to recessions, it is mainly due to:
    price inflexibility
  33. Which of the following is an example of a supply shock?
    a dramatic increase in energy prices increses production costs for firms in the economy.
  34. A nations GDP
    found by summing C + Ig + G + Xn
  35. GDP Includes:
    final, but not intermediate, goods.
  36. GDP excludes:
    the market value of unpaid work in the home.
  37. the GDP for the above economy is:
    $623
  38. Refer to above data, NDP is:
    $580
  39. Refer to above data, The National Income is:
    $580
  40. Refer to the above data, Disposable income:
    cannot be determined form the goven information.
  41. A price index is:
    a comparison of the price of a market basket from a fixed point of reference.
  42. Refer to above data, If year 3 is chosen as the base year, the price index for year 1 is:
    60
  43. Refer to above data, the nominal GDP for year 4 is:
    $49
  44. the growth of GDP may understate changes in the economy's economic well-being over time if the:
    quality of products and services improves.
  45. at an annual growth rate of 4 percent, real GDP will double in about.
    17 1/2 years.
  46. the industrial revolution and modern economic growth resulted in:
    the average human lifespan more than doubling.
  47. economic growth can be potrayed as a:
    outward shift of the production possibilities curve.
  48. more than half the growth of real GDP in the united states is caused by:
    increases in the productivity of labor.
  49. strong property rights are important for modern economic growth because:
    people are less likely to invest if they are fearful that others can take their return on investment without compensation.

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