stud
bud
Sign up
Log in
Home
Library
Explore
SAT
More
ECON 2301 Exam 1 Review - BARNETT Sp 25 Flashcards | StudBud
Explore
/
ECON 2301 Exam 1 Review - BARNETT Sp 25
ECON 2301 Exam 1 Review - BARNETT Sp 25
64 terms
·
StudBud Administration
·
1,712 plays
Imported from external platform
Flashcards
64 cards
F
Practice quiz
P
Host live
L
Questions
64
Answers
1
The law of supply states that price and quantity supplied are
directly related, ceteris paribus.
inversely related, ceteris paribus.
2
The study of how humans make decisions when faced with scarcity
Marginal Analysis
Economics
3
What is this an image of?
Production Possibilities Frontier with increasing opportunity costs.
Production Possibilities Frontier with constant opportunity costs
4
At Points that lie inside (or below) the PPF, society
cannot produce more of a good without giving up some of another good.
does not produce the maximum output with its given resources
5
If increasingly more units of good Y must be given up as more units of good X are produced then
the PPF is a straight downward sloping line.
the PPF is a downward-sloping curve that is bowed outward.
6
Macroeconomics deals with
individual industries in a market economy
the entire economy
7
Which of the following will
not
shift a supply curve?
a change in the good's own price
a change in the price of relevant resources
8
The government makes most economic decisions, or at least strongly influences how decisions are made.
Command economy
market oriented economy
9
The lesson of sunk costs is to forget about the money that’s irretrievably gone and instead to focus on
the additional costs and benefits of future options
how to increase demand for your product
10
For many goods, as the level of production increases, the average cost of producing each individual unit declines
Sunk costs
Economies of scale
11
A downward-sloping curve that is bowed outward representing increasing opportunity costs portrays a
Production Possibility Frontier with increasing opportunity costs.
Production Possibility Frontier with constant opportunity costs.
12
Three main goals of a healthy macroeconomy are:
Price stability, Full employment and Stock market stability
Price stability, Full employment , Economic growth
13
Points that lie inside the PPF are
Unattainable
Attainable but productive inefficient
productive efficient
14
A productive efficient society
can produce unlimited amounts of a good.
produces at a point on its PPF
15
Points that lie inside (or below) the PPF are
attainable and productive efficient.
attainable but productive inefficient.
16
One has a comparative advantage when they can produce a product at a(n) _____opportunity cost.
lower
increasing
17
A change in supply means
a shift of the entire supply curve
movement up and down the same supply curve
18
To an economist, utility means:
satisfaction
marginal
additional
19
What does it mean if a person makes a "decision at the margin"?
The person compares marginal benefits and total costs .
The person compares additional benefits and additional costs
20
A change in Demand means
a shift of the entire demand curve
a change in quantity supplied caused by a change in price
21
For many goods, as the level of production increases, the average cost per unit declines
law of demand
marginal analysis
economies of scale
22
Is it possible for a country to produce beyond it's PPF?
yes
no
23
Adam Smith's concept that individuals self-interested behavior can lead to positive social outcomes
Law of supply
Invisible hand
Ceteris Paribus
24
Heavily regulated economies often have
black markets
no government interference
25
Scarcity is defined as the condition in which
both wants and resources are limited.
wants are unlimited and resources limited.
26
________________________ helps to explain the law of demand.
The Law of Diminishing marginal utility
The Law of Dimishing marginal returns
27
Most decisions about what to produce, how to produce and for whom to produce are made by buyers and sellers.
Command Economy
Traditional economy
Market-oriented economy
28
The value of the next best alternative
Opportunity Cost
Alternate good's price
29
_________________ describe the world as it should be
Normative Statements
Positive Statements
30
The willingness and ability of sellers to produce and offer to sell different quantities of a good at different prices
demand
supply
31
As additional increments of resources to producing a good or service are added, the marginal benefit will decline
Law of diminishing marginal returns
Law of dimishing marginal utility
32
An economy where things are done the same as they have always been done.
Traditional economy
Command economy
Market-oriented economy
33
On a supply-and-demand diagram, equilibrium is found
where the demand and supply curves intersect.
where the demand curve intercepts the horizontal axis.
34
A "decrease in demand" means that
price declined and consumers want to purchase more.
the demand curve has shifted to the left.
35
Opportunity cost is the value of
the best (or most highly valued) forfeited alternative.
all forfeited alternatives.
36
What can change Equilibrium Price and Quantity?
a change in supply, demand or both supply & demand
a change in sunk cost
37
A person has a comparative advantage in the production of a good when
when they can produce the product at a lower opportunity cost.
when they can produce the product at a higher opportunity cost.
38
The higher the opportunity cost of attending college
the more likely an individual will go to college
the less likely an individual will go to college.
39
Entrepreneurship is
skill in influencing government regulators.
the talent for organizing the use of land, labor and capital.
40
Positive statements
describe the world as it is.
describe the world as it should be.
41
A change in quantity demanded indicates a movement from
one point to another on the same demand curve caused by a change in price
one point to another on the same supply curve caused by a change in price
42
Which of the following is not one of the four broad categories of resources?
capital
land
government
labor
43
At a price below the equilibrium price, there is
a shortage
a surplus
44
A Production Possibilities Frontier Graph for Constant Opportunity Cost is
a downward sloping straight line
a bowed out downward sloping curve.
a bowed out upward sloping curve.
45
Which of the following pairs of goods would be most likely to be complements?
peanuts and peanut butter
flashlights and batteries
coke and pepsi
46
The willingness and ability of buyers to purchase different quantities of a good at different prices
supply
demand
47
When the mix of goods produced represents the mix that society desires.
productive efficient
productive inefficiency
allocative efficiency
48
Preferences, Related Goods, Income, Market Size and Expectations of Future Price are
Supply Curve Shifters
Demand Curve Shifters
49
A change in quantity supplied indicates movement from
one point to another on the same demand curve caused by a change in price.
one point to another on the same supply curve caused by a change in price.
50
Resources, Alternate Goods, Technology, Number of Sellers, Expectations, Subsidies & Taxes are
Supply Curve Shifters
Demand Curve Shifters
51
The law of demand states that price and ____________ are ___________ related,
ceteris paribus.
quantity demanded ; inversely
quantity demanded ; directly
52
It is possible for a country to
consume
beyond it's PPF with specialization and trade.
True
False
53
When workers focus on a particular task for which they are better suited
Specialization
Marginal Analysis
54
1.
What does Ceteris Paribus mean?
The science of scarcity.
All other variables held constant or nothing else changes.
55
At a price above the equilibrium price, there is
a surplus
a shortage
56
Diagram that shows productively efficient combinations of two products that an economy can produce given the resources
Equilibrium
Production Possibilities Frontier
57
When producing a good or service, work is divided into a number of tasks that are performed by different workers.
Division of labor
Sunk costs
Microeconomics
58
The physical and mental talents people bring to production process comprise the resource
labor
capital
entrepreneurship
natural resources
59
The synonym economists commonly use for additional is
rational.
marginal.
capital.
economic.
60
Basically, division of labor and specialization can
lead to a decrease in overall production
lead to an increase in overall production
61
If Max's demand for hot dogs falls as his income rises, then for Max hot dogs are
an inferior good
a normal good
62
Whenever demand changes, whenever supply changes or whenever both supply and demand change:
Equilibrium price and quantity can change
The Production Possibilities Frontier can shift
63
As a person receives more of a good, the additional utility from each additional unit of the good declines
Law of diminishing marginal returns
Law of diminishing marginal utility
64
A(n) _______ good is one in which as income rises or falls, there is no change in the demand.
normal
neutral
inferior
