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Econ Final Exam Ch 4-5 Flashcards | StudBud
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Econ Final Exam Ch 4-5
Econ Final Exam Ch 4-5
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Answers
1
The difference between fixed costs and variable costs is that
fixed costs depend outside forces;variable costs depend internal forces
fixed costs remain same;variable costs depend on how much is produced
fixed costs are always low;variable costs are always high
fixed costs remain same;variable costs determined by fixed costs
2
Car manufacturers who use robots to do certain jobs on the assembly line are trying to increase supply by
applying new technology
lowering input costs
increasing the number of producers
taking advantage of government regulation
3
How is total revenue calculated?
multiplying price by quantity sold
multiplying change in price by change in quantity demanded
multiplying change in price by quantity sold
multiplying price by change in demand
4
Economists use a supply curve to
show the law of supply in table form
show the law of supply in graph form
show the law of supply in a written description
show the law of supply in chart form
5
What explains the shape of a demand curve?
the income effect
the law of diminishing marginal utility
the substitution effect
the formula to calculate total revenue
6
If quantity demanded does not change significantly when price changes, how is demand described?
elastic
perfectly elastic
unit elastic
inelastic
7
What do business owners use to gather information for market demand schedules?
substitution effect
marginal utiltiy
income effect
market research
8
According to the law of supply, when prices increases
quantity supplied increases
quantity demanded increases
supply increases
demand increases
9
Marginal revenue equals
total profit
marginal cost
total cost
product price
10
Supply is defined as
willingness and ability of the government to offer protections to citizens
willingness and ability of consumers to puchase goods and services
willingness and ability of laborers to work for producers for pay
willingness and ability of producers to offer goods and services for sale
11
What term is defined as goods that consumers demand more of when their incomes rise?
normal goods
complementary goods
inferior goods
substitute goods
12
Total cost is the sum of
fixed, marginal, and variable costs
fixed costs and marginal cost
marginal cost and variable costs
fixed costs and variable costs
13
What do various points on a demand curve represent?
change in marginal utility
change in elasticity
change in demand
change in quantity demanded
14
The amount of goods and services that a person can produce in a given time is called
labor input
labor productivity
labor intensive
labor output
15
The government uses excise taxes to
encourage business to invest in new technology
discourage businesses from importing too many resources
decrease the supply of products it doesn't want people to use
increase the supply of products it does want people to use
16
What two factors are necessary for demand?
familiarity with a good or service and the desire to pay for it
desire for a good or service and the ability to pay for it
the availability of a good or service and the ability to pay for
desire for a good or service and its availability in the market
17
The additional expense of producing one more unit of a product is called
marginal cost
marginal revenue
marginal product
marginal labor
18
If the number of consumers increases or decreases the ______ also changes
consumer expectations
incom
consumer tastes
market size
19
The appearance of a supply curve is
an upward slope, bottom left to top right
a vertical line
a horizontal line
a downward slope, top left to bottom right
20
Goods and services that can be used in place of other goods and servicess to satisfy consumer wants are called
complementary goods
normal goods
substitutes
inferior goods
21
When the demand curve shifts to the right
There is an increase in demand at all price points
There is a decrease in demand at all prices
22
What is a market demand curve?
a graph showing how much of a product a market is willing and able to buy
graph showing how much of a product an individual is willing & able 2 buy
a table showing how much of a product an individual is willing able to by
a table showing how much of a product a market is willing and able to by
23
Business owners decide on the right number of workers by analyzing data to learn when
profit-maximizing output is reached
total cost equals total revenue
variable costs get too high
diminishing returns change to increasing returns
24
Which of the following describes a demand curve?
It slopes downward from left to right.
It slopes downward from right to left.
It is a horizontal line.
It is bow-shaped.
25
Profit-maximizing output is the point at which
marginal revenue and marginal cost are equal
increasing returns change to diminishing returns
variable costs change to fixed costs
marginal revenue and total revenue are equal
26
When the use of another product increases the use of another product, the two products are called
normal goods
inferior goods
complementary goods
substitute goods
27
What term is defined as the change in the amount consumers will buy because they can buy a different product instead?
substitution effect
normal goods
income effect
inferior goods
28
The change in total output that results from hiring one additional worker is called
marginal revenue
marginal cost
marginal labor
marginal product
29
Which economic concept is defined as the measure of how responsive consumers are to price change?
decreasing marginal utility
elasticity of demand
consurmer expectation
consumer taste
30
The ease of changing production to respond to price change determines
how regulated a business is
how expensive a product is
how much fixed costs are
how elastic a supply is
