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Econ- Exam 1- Homework Questions
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if the demand curve shifts to the right then
demand has increased
what variable will change market demand?
tastes
population, demographics
income
NOT the price of the product
the income effect of a price change refers to the impact of a change in
the price of a good on a consumers' purchasing power
if the price of cars increased then
the demand for gas would decrease
one would speak of a change in the quantity of a good supplied rather than a change in supply if
the price of the good changes
equilibrium in a market is when the
quantity demanded=quantity supplied
the ideal market model is an example of
coordination conflict situation
consumer surplus
the difference between the highest price a consumer is willing to pay and the price they actually paid
producer surplus:
the difference between the lowest price a firm would be willing to accept and the actual price
marginal cost is the
additional cost to a firm of producing one more unit of a G or S
if equilibrium is achieved in a competitive market then
there will be no deadweight loss
government proposes a tax on an imported item, buyers will bear the entire burden of the tax if the
demand curve for the imported item is vertical
most economists who have studied the incidence of tax have concluded that
the burden of tax falls almost entirely on workers
if there is a positive externalitiy associated with consumption then we would say marginal social benefit is =
marginal private benefit + marginal external benefite
the US economy
is one of many forms of semi-capitalist society
scientific laws are best thought as
tendencies that may be observed in the absence of other forces or influences
economists reason that the optimal decision is to continue any activity up to the point where
MB=MC
adam smith's invisible hand refers to
the process by which individuals acting in their own self interest bring about a market outcome that benefits society as a whole
the 'missing leg' of econ largely ignored by the text's definition of econ is
the forms of interaction among individuals
a successful market economy requires
well defined property rights and an independent court system to adjudicate disputes based on the law
when production reflects consumer preference ______ occurs
allocative efficiency
what is the result of a market economy
voluntary exchange
you have absolute advantage whenever you
can produce more of something than others with the same resources
an inward shift of a nations PPF can occur due to
a natural disaster
adam smith thought of society as
a place where indifference to poverty and lack of compassion could undermine the ability of society to flourish
the revenue received from the sale of __________ of a product is a MB to the firm
an additional unit
the law of instrument is said to make sense
only when there is more than one way of a looking at a situation
the PPF shows
if all resources are fully and efficiently utilized more of one good can be produced only by producing less of another good
markets promote
competition and voluntary exchange
according to the commentary
one-dollar-one-vote need not be identical to one-person-one vote
Author
cthuruth
ID
34845
Card Set
Econ- Exam 1- Homework Questions
Description
macro
Updated
2010-09-15T04:29:48Z
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