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Which of the following is included in the study of macroeconomics? |
Unemployment in the nation. |
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A straight line or curve representing a relationship between two variables can shift when a factor not included on the vertical axis or horizontal axis changes. |
True |
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According to marginal analysis, you should spend more time studying economics if the extra benefit from an additional hour of study: |
outweighs the extra cost. |
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The production possibilities curve shows that: |
some of one good must be given up to get more of another good in an economy that is operating efficiently. |
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Any point on the production possibilities curve illustrates: |
maximum production combinations. |
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If an economy is operating at a point inside the production possibilities curve, |
its resources are not being used efficiently. |
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Economic growth may be represented by a(n): |
outward shift of a production possibilities curve. |
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The fact that price and quantity demanded are related negatively illustrates the: |
law of demand. |
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In economics, the demand for a good refers to the amount of the good people: |
are willing to buy at various prices. |
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Which of the following is true for the law of demand? |
There is an inverse relationship between the price of a good and the quantity of the good demanded. |
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Which of the following will cause the demand curve for a good to shift to the right? |
Increase in the price of a substitute good. |
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The law of demand is graphically demonstrated by a(n): |
downward-sloping demand curve. |
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The law of supply states that: |
there is a positive relationship between the price of a good and the quantity of it offered for sale by suppliers. |
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If tofu is a normal good, an increase in income will: |
shift the demand curve for tofu to the right. |
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The demand schedule for a good shows: |
the specific quantity of the good that people are willing and able to buy at different prices. |
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Which of the following would not cause market demand for a normal good to decline? |
An increase in the price of a substitute. |
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An increase in the demand for a product means that the: |
demand curve shifts to the right. |
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Other things being equal, the effect of a decrease in the price of DVDs on the market for DVD players is a(n): |
rightward shift in the demand curve for DVD players. |
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Which of the following pairs of goods would be considered complementary? |
Computers and computer software. |
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The supply schedule shows the specific quantity of a good that suppliers are willing and able to: |
provide at different prices. |
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When economists say the supply of a product has decreased, they mean that: |
the supply curve has shifted to the left. |
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In supply and demand analysis, a technological improvement in the production of good X causes the: |
supply curve for X to shift to the right. |
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A shortage of product means a(n): |
excess demand of the product. |
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How would a decrease in the price of the feed grains used to feed cattle affect the market for beef? |
The supply of beef would increase, decreasing beef prices. |
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When the price of a good is above its equilibrium price, a: |
surplus puts downward pressure on the price. |
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The price of a good will rise when: |
there is a shortage of the good. |
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If the demand for a good decreased, what would be the effect on the equilibrium price and quantity? |
Price would decrease, and quantity would decrease. |
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An increase in consumers’ incomes will have what effect on the equilibrium in the restaurant meals market? |
Price will increase, and quantity will increase. |
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Ceteris paribus, an increase in the supply of a good causes which of the following? |
Lowers the equilibrium price, and increases the quantity bought and sold. |
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A market consequence of a price floor program is that: |
a surplus of the product will develop. |
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A price floor would be established in cases where the government believed the market equilibrium price would: |
be too low. |
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A price ceiling that sets the price of a good below market equilibrium will cause: |
An increase in quantity demanded of the good. A decrease in quantity supplied of the good. A shortage of the good. |
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Gross domestic product is officially measured by adding together the: |
market value of all final goods and services produced within the borders of a nation. |
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Which of the following would be counted as a final good for inclusion in GDP? |
A piece of glass bought this year by a consumer to fix a broken window. |
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Which of the following expenditures would not be included in GDP? |
Purchase of a silver cup previously sold new in 1950. |
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Gross domestic product (GDP) includes: |
only final goods and services. |
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Income received minus personal taxes is called: |
disposable personal income |
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Personal consumption expenditures include: |
all newly produced goods and services bought by households. |
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Which of the following spending is larger for U.S. GDP? |
State and local government. |
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The largest component of GDP is: |
personal consumption expenditures. |
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Gross domestic product is a measure of: |
market value of the output produced during a period. |
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The sum of payments made to resource owners for the use of their resources is: |
national income. |
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Using the income approach, an estimate of the value of capital worn out producing GDP is: |
capital consumption allowance or depreciation |
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The income approach to measuring GDP includes: |
compensation for employees, net interest, rent, net profits, and indirect business taxes and depreciation. |
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