PIC - Which would cause this expansion?

the purchase of a new technology that increases productivity

What is the main incentive for Bill Gates to start Microsoft?

to maximize income for investors and himself

How does money flow in an economy?

both from households to businesses and businesses to households

Which is not a determinant of supply?

the price of complementary goods/services

If I install a more productive oven in my bakery, the result should be ___

lower prices and supply increase

PIC - What could cause a shift from S1 to S2?

new fertilizers increase wheat crop yields

PIC - What does the equilibrium represent?

Nine thousand products produced at a price of $15

What would be the result if consumer incomes are increasing?

The demand curve will shift to the right

How might businesses try to increase demand for a product?

advertise in order to impact consumer tastes/preferences

PIC - What is the name for this graph?

a production possibilities curve

PIC - What happens to the equilibrium when moving from S1 to S2?

price increases while quantity decreases

High prices in a market economy will cause ___

producers supply more and consumers buy less

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Econ - Midterm Review - 30 most missed

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Questions 30

Answers

1
Which of the following is an investment in human capital?
building a new highway
going to college
building a new factory
building new schools
2
PIC - Which would cause this expansion?
the purchase of a new technology that increases productivity
a decrease in the stock prices for guns
a recession that limits people's income
a gloomy economic outlook
3
What is the main incentive for Bill Gates to start Microsoft?
controlling the computer industry
to maximize income for investors and himself
the introduction of a new line of software
to share technology with competitors
4
Which is not a determinant of demand?
income
cost of resources
consumer tastes and preferences
consumer price expectations
5
How does money flow in an economy?
both from households to businesses and businesses to households
only going through third party agencies
ony from households to businesses for goods/services
only from businesses to households as wages
6
PIC - What would cause the shift to S2?
a tech breakthrough
higher taxes imposed on businesses
a reduction of the workforce
consumer incomes increasing
7
If milk farmers expect the milk prices to drop, what will they most likely do?
decrease production
kill all of their cows
increase production
nothing
8
When demand drives prices for an essential good too high, the government may ____
establish price equilibriums
establish price floors
take over the industry
establish price ceilings
9
PIC - What is the opp. cost of producing of producing 400 guns instead of 100?
not enough information
600 units of bread
900 units of bread
300 units of bread
10
Which word would best describe the US economy?
capitalist
pure market
centrally planned
traditional
11
Which is not a determinant of supply?
the # of producers in the market
technology and productivity
the price of complementary goods/services
the prices of resources (inputs)
12
If I install a more productive oven in my bakery, the result should be ___
lower prices and supply increase
higher prices and demand decreases
lower prices and supply decreases
higher prices and supply increase
13
Sharon is opening a sole proprietorship. What is the biggest disadvantage of this?
no separation of ownership and control
double taxation
unlimited liability
ease of organizing
14
PIC - A price ceiling of $2 would result in:
QD=20; QS=40
QD=40; QS=20
QD=30; QS=30
QD=40; QS=30
15
What is true about consumer demand for medical treatment?
demand is inelastic
withdrawal from market advantage utilizesa Keynesian model
demand is elastic
costs of production are low
16
PIC - What could cause a shift from S1 to S2?
the government reducing subsidies to farmers
a drought reducing output by 25%
new fertilizers increase wheat crop yields
firms leaving the industry
17
A business makes a profit when its costs are less than their ___
revenues
power bill
variable costs
fixed costs
18
PIC - What is the result of a shift to S2?
price up; quantity down
price down; quantity up
price down; quantity down
price up; quantity up
19
PIC - What does the equilibrium represent?
The point where supply is greater than demand
a point where the consumer price index is stable
a disconnect between consumer confidence and the economy
Nine thousand products produced at a price of $15
20
Which market is mostly described as perfectly competitive?
shoes
electricity
cars
agriculture
21
Which market has only ONE firm supplying a particular product?
oligopoly
perfect competition
monopolistic competition
monopoly
22
What would be the result if consumer incomes are increasing?
The supply curve will shift to the right
The supply curve will shift to the left
The demand curve will shift to the left
The demand curve will shift to the right
23
How might businesses try to increase demand for a product?
advertise in order to impact consumer tastes/preferences
impose a price ceiling on their product
produce enough of the product to flood the market
make their product more scarce, making it more expensive
24
PIC - What is the name for this graph?
a supply curve
an equilibrium price graph
a production possibilities curve
a demand curve
25
By-products of consumption that impose costs on third parties are known as ___
exclusive externalities
non-exclusive externalities
negative externalities
positive externalities
26
PIC - What happens to the equilibrium when moving from S1 to S2?
price and quantity both increase
there is a decrease in demand
price increases while quantity decreases
nothing changes
27
Which question does "Apple to begin producing next-Gen computers" answer?
for whom to produce
when to produce
what to produce
how to produce
28
High prices in a market economy will cause ___
government regulation
producers supply less and consumers buy more
producers supply more and consumers buy more
producers supply more and consumers buy less
29
What is true about the equilibrium?
consumers and producers are both satisfied
there is no shortage or surplus
its where supply and demand are equal
all answers are correct
30
Corporate stockholder don't have to pay back the debts of a corporation. This is known as ____
dividends
unlimited liability
limited liability
partnership

Econ - Midterm Review - 30 most missed Flashcards | StudBud