Will,a sprinter on the track team, has inelastic demand for sports drinks.The price was raised.

He bought 10bottles@$1, 10bottles@$1.50

what is the major difference between a corporation and other kinds of business?

it has a separate entity from owners/workers: stockholders

how is current demand for a good related to its future prices?

if the price is expected to drop, current demand will fall

a demand curve shows the relationship between?

P of a good & Q of that good consumers are willing 2 buy

what is a company's total revenue?

the amount a company receives for selling its goods

In response to rising traffic,demand for bicycles has increased.The new equilibrium point shows

more bicycles sold, but at a higher price

the price of Mr. Pibb drops, what will happen to the price and quantity of Dr. Pepper?

price decrease, quantity increase

what is the basic principle of the law of demand?

when a good's price is lower, people will buy more of it

which of the following is an example of cyclical unemployment?

an autoworker loses her job during the recession

which of the following best describes the ideal level of output?

marginal revenue is equal to marginal cost

The price of gas goes up to $5/gal. What happens to P & Q of electric cars?

price increase, quantity increase

what is the difference between a recession and a depression

a depression is really deep recession with high unemployment, depression is more severe and lasts longer

if butter and margarine are considered to be substitutes; price of butter increases?

P of m. increases, Q of m. increases

recent government closed 45% of forest land to lumber co's. what happens 2 P & Q of furniture?

price increases, quantity decreases

which of the following is part of structural unemployment?

a bank teller who is replaced by ATM machines

which o' the following events could cause the demand curve for sports magazines to shift right?

a star basketball player interests thousands in sports

Which of the following is the best example of the law of supply?

sandwich shop increases no. of sandwiches when the $ goes up

What happens when a person makes a purchase using a credit card?

card issuer pays the store/cardholder assumes debt+interest

In regards to the no. of firms, which of the following is the best example of an oligopoly?

two firms producing 70-80% of the output

Tech advances reduce cost to make MP3. What will happen to P & Q of MP3 players in the market?

more MP3 players will be sold at a lower price

what is monopolistic competition?

many companies selling similar but not identical products

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ECONOMICS_FINALREVIEW_Part2

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Questions 31

Answers

1
Will,a sprinter on the track team, has inelastic demand for sports drinks.The price was raised.
He bought 10bottles@$1,5bottles@$1.5
He quits buying sports drinks
He bought 10bottles@$1, 10bottles@$1.50
He bought 15 bottles@$1, 20bottles@$1.5
2
what is the major difference between a corporation and other kinds of business?
it has officers who are responsible for the business
it has a separate entity from owners/workers: stockholders
its not responsible for debts if it fails
its much larger than other businesses
3
a shift in the demand curve means which of the following?
a decrease in both price and quantity demanded
a change in consumer income
a change in demand at every price
a rise in prices
4
how is current demand for a good related to its future prices?
if the price is expected to drop, current demand will rise
if the price is expected to rise, current demand will fall
current demand is not related to future prices
if the price is expected to drop, current demand will fall
5
a demand curve shows the relationship between?
P of a good & Q of that good consumers are willing 2 buy
the income of consumers and the Q of a good they'll buy
P of a good & Q that producers R willing 2 sell
the income of consumers & Q of a good they'll sell
6
what is a company's total revenue?
the amount of goods a company can expect to sell
the price of a company's goods
the amount a company receives for selling its goods
the amount of profit a company can expect to make
7
In response to rising traffic,demand for bicycles has increased.The new equilibrium point shows
more bicycles sold, but at a higher price
fewer bicycles sold, but at the same price
more bicycles sold, but at a lower price
fewer bicycles sold, but at a lower price
8
the price of Mr. Pibb drops, what will happen to the price and quantity of Dr. Pepper?
price increase, quantity increase
price increase, quantity decrease
price decrease, quantity decrease
price decrease, quantity increase
9
if the price of sugar increases, what happens to P&Q of soda?
P decreases, Q will decrease
P increases, Q will increase
P increases, Q will decrease
P decreases, Q will increase
10
Good Wireless&Better Wireless merge. The federal gov watches closely for signs/evidence of a:
vertical merger
horizontal merger
monopoly
conglomerate
11
what is the basic principle of the law of demand?
services are of interest in the same way that goods are
the higher the price, the more people will want the good
everyone has a limited income that they will spend
when a good's price is lower, people will buy more of it
12
a government mandated minimum price that is paid for a good or service
a shock
a price floor
a price ceiling
rationing
13
which of the following is an example of cyclical unemployment?
a computer programmer quits to move to California
a construction worker loses his job every winter
an autoworker loses her job during the recession
a toymaker worked for a company that closed
14
which of the following best describes the ideal level of output?
marginal revenue is more than marginal cost
marginal revenue is more than total cost
marginal revenue is less than total cost
marginal revenue is equal to marginal cost
15
The price of gas goes up to $5/gal. What happens to P & Q of electric cars?
price decrease, quantity increase
price increase, quantity increase
price decrease, quantity decrease
price increase, quantity decrease
16
all of the following are examples of a variable cost except?
heat
electricity
rent
labor
17
any situation in which quantity supplied exceeds quantity demanded
is a price floor
is a price ceiling
is a surplus
is equilibrium
18
what is the benefit of a price ceiling?
it happens in the free market
it causes a surplus
it places a limit on prices
it starts with equilibrium
19
what is the difference between a recession and a depression
a recession = growth, depression = contraction
a depression is really deep recession with high unemployment
depression is more severe and lasts longer
unlike recession, depression has high inflation levels
20
an example of a nondurable good is
a used car
a paperback book
a new car
a washing machine
21
when a consumer is able and willing to buy a good or service, she's counted in?
allocation
supply
demand
elasticity
22
if butter and margarine are considered to be substitutes; price of butter increases?
P of m. decreases, Q of m. decreases
P & Q remain unchanged
P of m. increases, Q demanded of m. decreases
P of m. increases, Q of m. increases
23
recent government closed 45% of forest land to lumber co's. what happens 2 P & Q of furniture?
price increases, quantity decreases
price increases, quantity increases
price decreases, quantity decreases
price decreases, quantity decreases
24
which of the following is part of structural unemployment?
an autoworker retires at age 66
construction worker can't find work bc of depressed mkt
a bank teller who is replaced by ATM machines
a baseball player who does not work in the off season
25
which o' the following events could cause the demand curve for sports magazines to shift right?
a star basketball player interests thousands in sports
a local library buys a subscription to the magazine
a publisher cuts the prices from $3.50 to $2.50
price of a computer game magazine rises from $2.95 to $3.95
26
Which of the following is the best example of the law of supply?
a milling co builds a new factory to process flour
sandwich shop increases no. of sandwiches when the $ goes up
food produces increases the no. of acres of wheat for a mill
a catering company buys a new dishwasher to make work easier
27
What happens when a person makes a purchase using a credit card?
vendor gets paid ONLY if the cardholder has the funds
$ is immediately deducted from their account
card issuer pays the store/cardholder assumes debt+interest
amount purchased is deducted from a prepaid account
28
In regards to the no. of firms, which of the following is the best example of an oligopoly?
ten firms producing 90% of the output
one firm producing 95% of the output
two firms producing 70-80% of the output
eight firms producing 70% of the output
29
which best describes why the price of wheat rises following a poor wheat harvest?
the supply of wheat increased
the supply of wheat decreased
the demand for wheat decreased
the demand for wheat increased
30
Tech advances reduce cost to make MP3. What will happen to P & Q of MP3 players in the market?
more MP3 players will be sold at a higher price
fewer MP3 players will be sold at the same price
more MP3 players will be sold at a lower price
fewer MP3 players will be sold at a higher price
31
what is monopolistic competition?
one co. selling several diff. products under diff. names
a very few companies selling identical products
many companies selling similar but not identical products
one company selling the identical product under diff. names

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