Economics 101 petereater

  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.
Author
mattjh44
ID
71665
Card Set
Economics 101 petereater
Description
Economics 101 mid term
Updated