Economics 101 petereater
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Economics 101 petereater
Economics peatereater matt mid term
Economics 101 mid term
the word "utility" means:
pleasure and satisfaction
study of economics is primarily based on
choices that are made in seeking the best use of resources
the term "ceteris paribus" means:
other things equal
the economizing problem is
the need to make choices because economic wants exceed economic needs
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
which of the following is a distinguishing feature of a market system?
wide-spread private ownership of capital
competition means that
there are independantly acting buyers and sellers in each marke
"consumer sovereignty" means that:
buyers determine what will be produced based on their "dollar votes" for the goods and services offered by sellers
refer to diagram,. Flow (1) represents:
wage, rent, interest, and profit income.
Refer to above diagram, Flow(2) represents:
land, labor, capital, entrepreneurability.
The law of demand states that:
price and quantity demanded are inversely related.
economists use the term "demand" to refer to:
schedule of various combinations of market prices and amounts demanded.
which of the following would NOT shift the demand curve for beef?
a reduction in the price of cattle feed.
if two goods are compliments:
a decrease in the price of one will increase the demand of another.
if Z is an inferior good, an increase in money income will shift the:
demand curve for Z to the left.
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.
Refer to the above data, equlibrium price will be:
Refer to the above data, if the price in this market was $4:
farmers would not be able to sell all their wheat.
refer to the above diagram. the equlibrium price and quantity in this market will be:
$1.00 and $200.
Refer to the above diagram. A surplus of 160 units would be encountered if price was:
Refer to the diagram. A shortage of 160 units would be encountered if price was:
Refer to the above diagram. A government-set price floor is best illustrated by:
Refer to the above diagram. A government-set price ceiling is best illustrated by:
If a legal ceiling price is set above the equilibrium price:
neither the equilibrium price nor the equilibrium quantity will be affected.
the personal distribution of income refers to the:
way income is distributed among specific households or spending units.
The functional distribution of income refers to the:
distribution of income to basic resource classes, that is, wages, rents, interests, and profits.
Since 1941 personal taxes have:
risen both absolutely and as a percentage of personal income.
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.
the advantages of the corporate form of business include:
the ability to raise financial capital by selling stocks and bonds.
Nonrivalry and nonexecutability are the main characteristics of:
shocks to the economy occur when:
actual economic events do not match what people expected.
When demand shocks lead to recessions, it is mainly due to:
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.
A nations GDP
found by summing C + Ig + G + Xn
final, but not intermediate, goods.
the market value of unpaid work in the home.
the GDP for the above economy is:
Refer to above data, NDP is:
Refer to above data, The National Income is:
Refer to the above data, Disposable income:
cannot be determined form the goven information.
A price index is:
a comparison of the price of a market basket from a fixed point of reference.
Refer to above data, If year 3 is chosen as the base year, the price index for year 1 is:
Refer to above data, the nominal GDP for year 4 is:
the growth of GDP may understate changes in the economy's economic well-being over time if the:
quality of products and services improves.
at an annual growth rate of 4 percent, real GDP will double in about.
17 1/2 years.
the industrial revolution and modern economic growth resulted in:
the average human lifespan more than doubling.
economic growth can be potrayed as a:
outward shift of the production possibilities curve.
more than half the growth of real GDP in the united states is caused by:
increases in the productivity of labor.
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.