cannot affect the market price of its product.

In order to accurately compare GDP between different years, what must be removed from GDP?

Your mom., Changes in prices caused by inflation.

Which of the following is NOT included when calculating GDP for the United States?

Cars manufactured in Japan, but sold in the U.S.

Which option best summarizes demand-pull inflation and cost-push inflation:

high demand raises prices, high input costs raise prices.

Increases in technology will:

shift the productivity curve up

A monopolist is considered a price maker because:

they are able to affect price by changing output.

All of the following are reasons why economists think price controls are inefficient except:

they have environmental benefits

All of the following people are considered employed EXCEPT:

Harold, who began his job 3 weeks ago on his 15th birthday.

Which of the following will cause a shift in the supply curve for corn?

There was a severe drought throughout the United States.

Human capital refers to:

the training, education, and expertise of a worker.

A vendor had a revenue of $500. He raised the price, but revenue fell to $450. This means:

the product is elastic since his revenue decreased

If a government decides to pay its debts by printing more money, the economy will likely:

experience excessive rates of inflation or hyperinflation

Increases in a country’s real GDP per capita usually mean:

its standard of living has increased.

If both demand and supply increase in the market for smartphones:

the change in price is unknown but quantity will increase

When the economy experiences an expansion, it is most likely the case that:

Unemployment is decreasing, GDP is increasing, Inflation is increasing

A monopolist can increase his revenue through price discriminating because:

some buyers will pay more while others will only pay less

In almost all circumstances, an increase in demand will cause:

price to increase and quantity to increase

When people have more money, they tend to purchase:

more normal goods and fewer inferior goods

All of the following are characteristics of a monopolistic market EXCEPT:

a monopolist has no control over price.

One of the problems with the unemployment rate is that it:

doesn't reflect workers who have given up looking for a job.

The law of demand states that:

high prices reduce demand, low prices will increase demand

A group who colludes to restrict output and raise prices

The price elasticity of demand measures:

how sensitive the quantity demanded is to a change in price

Consider the following graph, why might have equilibrium moved from A to B?

Lemonade went out of style as sugar and lemon prices dropped

Monopolies are generally regarded as harmful to the economy because:

part of consumer surplus is converted into a deadweight loss

An excess amount of bananas in a competitive market would indicate that:

price is currently above the equilibrium point.

The Consumer Price Index (CPI):

uses a market basket to calculate current price levels.

The law of supply states that:

as price increases, producers will supply more.

A change in the quantity demanded is different than a change in demand because:

change in the quantity demanded means a movement along line

The main difference between the short run and the long run in economics is that the long run:

means enough time has gone by for people to adjust.

In perfect competition, a firm’s marginal revenue is:

equal to the price of the product.

The business cycle describes the fact that:

an economy’s level of output fluctuates over the long-run.

All of the following are characteristics of oligopoly EXCEPT:

it is only possible to make abnormal profit in the short run

In almost all circumstances, a decrease in supply will cause:

price to increase and quantity to decrease.

studbud

Economics S.G.O.

50 termsStudBud Administration195 plays

Flashcards50 cardsFPractice quizPHost liveL

Questions 50

Answers

1
A price-taking firm:
can raise or lower its price in order to increase profits.
cannot affect the market price of its product.
colludes with its competitors to decide upon a price.
will often set its price below the market equilibrium price.
2
In order to accurately compare GDP between different years, what must be removed from GDP?
Your mom.
Government spending.
Changes in prices caused by inflation.
Investment spending.
3
Which of the following is NOT included when calculating GDP for the United States?
Cars manufactured in Michigan, but sold in Minnesota
Cars manufactured in Michigan, but sold to the government
Cars manufactured in the U.S., but sold in Japan
Cars manufactured in Japan, but sold in the U.S.
4
In game theory, a player is more likely to deviate in which type of game?
Single-shot game
If the payoff matrix is over 150% for deviance
Nash Equilibrium
Multiple-shot game
5
Which option best summarizes demand-pull inflation and cost-push inflation:
cost-push occurs during recessions.
demand-pull occurs during expansions.
drops in aggregate supply and drops in aggregate demand.
high demand raises prices, high input costs raise prices.
6
Increases in technology will:
slide up along the productivity curve
shift the productivity curve down
shift the productivity curve up
slide down along the productivity curve
7
Over the past 30 years, much of Africa has experienced real GDP per capita levels that have:
stayed pretty much the same.
exceeded the U.S. levels.
dramatically increased.
dramatically decreased.
8
A monopolist is considered a price maker because:
they are able to affect price by changing output.
they can charge any price and will still make a profit.
they must accept the market price as given.
they do not produce where MR = MC.
9
Price ceilings usually create a ____________; while price floors usually create a ___________.
surplus; shortage
shortage; quota
quota; surplus
shortage; surplus
10
All of the following are reasons why economists think price controls are inefficient except:
resources are wasted
resources are not allocated efficiently
they have environmental benefits
they promote illegal activity
11
A popular vape company makes 100 pods for a cost of $50. Output rises to 110 pods, total cost is $60. What is MC?
$60
$2
$10
$1
12
All of the following people are considered employed EXCEPT:
John, who has been on vacation from his job for one week.
Peter, who only worked at his job for three hours last week.
Harold, who began his job 3 weeks ago on his 15th birthday.
Jen, who has been home sick for the last two weeks.
13
Which of the following will cause a shift in the supply curve for corn?
A new study shows the health benefit of consuming more corn.
Consumer incomes increase.
Thousands of tobacco farmers switch production to cotton.
There was a severe drought throughout the United States.
14
Human capital refers to:
the money businesses spend on machinery and finances.
the sophistication of the tools used in production.
the training, education, and expertise of a worker.
the infrastructure and machinery used to create a product.
15
A vendor had a revenue of $500. He raised the price, but revenue fell to $450. This means:
product is inelastic since his revenue decreased
the product is elastic since his revenue decreased
product is inelastic since his revenue increased
the product is elastic since his revenue increased
16
If a government decides to pay its debts by printing more money, the economy will likely:
experience problems with deflation.
experience excessive rates of inflation or hyperinflation
experience dramatic decreases in inflation rates.
high rates of inflation but very low levels of unemployment.
17
Which of the following markets most closely resembles perfect competition?
Automotives
Computers
Fast food restaurants
Agriculture
18
Increases in a country’s real GDP per capita usually mean:
the country has low levels of poverty.
its levels of poverty have increased.
its standard of living has increased.
the country has a high standard of living
19
If an economy is at full employment, it has an unemployment rate that is called the:
logarithm rate of unemployment.
frictionally-adjusted rate of unemployment.
natural rate of unemployment.
natural log rate of unemployment.
20
The costs incurred by a firm when no output is being produced are called:
marginal costs.
variable costs.
fixed costs.
average costs.
21
If both demand and supply increase in the market for smartphones:
price will increase but the change in quantity is unknown
price will remain unchanged and quantity will decrease
price will decrease and quantity will decrease
the change in price is unknown but quantity will increase
22
When the price of Good X decreases, the demand for Good Y increases. Good X and Good Y are:
unrelated goods.
inferior goods.
complementary goods.
substitute goods.
23
During recessions all of the following usually happen EXCEPT:
inflation increases
inflation decreases
unemployment increases
GDP decreases
24
When the economy experiences an expansion, it is most likely the case that:
Unemployment is increasing
Unemployment is decreasing
GDP is increasing
Inflation is increasing
25
A monopolist can increase his revenue through price discriminating because:
he has constant marginal costs
it will increase the consumer surplus
it will increase the demand for his product
some buyers will pay more while others will only pay less
26
In almost all circumstances, an increase in demand will cause:
price to decrease and quantity to decrease
price to decrease and quantity to increase
price to increase and quantity to increase
price to increase and quantity to decrease
27
When people have more money, they tend to purchase:
more normal goods and more inferior goods
fewer normal goods and more inferior goods
more normal goods and fewer inferior goods
fewer normal goods and fewer inferior goods
28
All of the following are characteristics of a perfectly competitive market EXCEPT:
limited entry and exit.
no long-run economic profits.
standardized product.
numerous sellers.
29
If using real GDP per capita for measurement, economists consider the poorest continent to be:
Africa
South America
Asia
Europe
30
The following graph depicts what?
increase in supply
decrease in supply
decrease in demand
increase in demand
31
All of the following are characteristics of a monopolistic market EXCEPT:
there is only one seller.
there are high barriers to entry.
there are no close substitutes.
a monopolist has no control over price.
32
One of the problems with the unemployment rate is that it:
is not measured accurately.
doesn't reflect workers who have given up looking for a job.
does not count any workers above the age of 55.
counts underemployed workers as unemployed workers.
33
The law of demand states that:
price has no effect on the amount consumers demand
high prices reduce demand, low prices will increase demand
as price decreases, consumers will demand less of a product
as price increases, consumers will demand more of a product
34
A cartel is:
usually achieved through tacit collusion.
another name for oligopoly.
A group who colludes to restrict output and raise prices
legal in the United States.
35
The price elasticity of demand measures:
the responsiveness of a good’s price to changes in demand
the amount of goods producers will supply at any given price
how often the demand curve increases or decreases
how sensitive the quantity demanded is to a change in price
36
Consider the following graph, why might have equilibrium moved from A to B?
People expect lemonade prices to rise, so they buy more now.
Lemonade went out of style as sugar and lemon prices dropped
Price of a subs. good increased as many stands were opening.
Consumer incomes increased but lemonade stands shut down.
37
Which of the following markets most closely resembles monopoly?
Diamonds
Gas Stations
Blue Jeans
Breakfast Cereals
38
Monopolies are generally regarded as harmful to the economy because:
prices are set below the competitive equilibrium level
they produce more than the market is willing to buy
part of consumer surplus is converted into a deadweight loss
they produce more pollution than firms in other markets
39
An excess amount of bananas in a competitive market would indicate that:
consumers want to buy more bananas than producers supply.
price is currently above the equilibrium point.
the market cannot find equilibrium price and quantity.
the demand curve will increase to consume the excess demand.
40
The Consumer Price Index (CPI):
only increases during times of economic expansion.
is equal to 200 in whichever year is considered the base.
uses a market basket to calculate current price levels.
consists of items a typical 18-year old might buy.
41
The law of supply states that:
as price increases, producers will supply more.
price has no effect on the amount producers supply.
price will only affect the supply if the item is inelastic.
as price decreases, producers will supply more.
42
In the long run, the economy of the United States has:
behaved in ways that cannot be explained by macroeconomics
steadily grown over time
steadily declined over time
experienced drastic fluctuations, but is stable now
43
A change in the quantity demanded is different than a change in demand because:
only the equilibrium quantity changes
change in the quantity demanded means the demand curve moved
only the equilibrium price changes
change in the quantity demanded means a movement along line
44
The main difference between the short run and the long run in economics is that the long run:
means that 1 month has passed.
means that 3 months have passed.
means enough time has gone by for people to adjust.
means people have not adjusted to all changes.
45
In perfect competition, a firm’s marginal revenue is:
equal to zero.
equal to the price of the product.
below the demand curve for the product.
downward sloping.
46
The business cycle describes the fact that:
an economy’s level of output fluctuates over the long-run.
politicians pass laws that cause the economy fluctuate.
unemployment levels are constantly changing.
inflation rates are constantly changing.
47
All of the following are characteristics of oligopoly EXCEPT:
there is mutual interdependence between the firms
it is only possible to make abnormal profit in the short run
Only a few firms with concentration ratios usually above 50%
there are high barriers to entry
48
A firm maximizes its profit, or minimizes its loss, when marginal revenue equals:
marginal product.
average total cost.
average variable cost.
marginal cost.
49
What shift is depicted in this graph?
Decrease in supply.
Decrease in demand.
Increase in demand.
Increase in supply.
50
In almost all circumstances, a decrease in supply will cause:
price to increase and quantity to increase.
price to increase and quantity to decrease.
price to decrease and quantity to decrease.
price to decrease and quantity to increase.

Economics S.G.O. Flashcards | StudBud

Economics S.G.O.

50 termsStudBud Administration195 plays

Flashcards50 cardsFPractice quizPHost liveL

Questions 50

Answers

1
A price-taking firm:
can raise or lower its price in order to increase profits.
cannot affect the market price of its product.
colludes with its competitors to decide upon a price.
will often set its price below the market equilibrium price.
2
In order to accurately compare GDP between different years, what must be removed from GDP?
Your mom.
Government spending.
Changes in prices caused by inflation.
Investment spending.
3
Which of the following is NOT included when calculating GDP for the United States?
Cars manufactured in Michigan, but sold in Minnesota
Cars manufactured in Michigan, but sold to the government
Cars manufactured in the U.S., but sold in Japan
Cars manufactured in Japan, but sold in the U.S.
4
In game theory, a player is more likely to deviate in which type of game?
Single-shot game
If the payoff matrix is over 150% for deviance
Nash Equilibrium
Multiple-shot game
5
Which option best summarizes demand-pull inflation and cost-push inflation:
cost-push occurs during recessions.
demand-pull occurs during expansions.
drops in aggregate supply and drops in aggregate demand.
high demand raises prices, high input costs raise prices.
6
Increases in technology will:
slide up along the productivity curve
shift the productivity curve down
shift the productivity curve up
slide down along the productivity curve
7
Over the past 30 years, much of Africa has experienced real GDP per capita levels that have:
stayed pretty much the same.
exceeded the U.S. levels.
dramatically increased.
dramatically decreased.
8
A monopolist is considered a price maker because:
they are able to affect price by changing output.
they can charge any price and will still make a profit.
they must accept the market price as given.
they do not produce where MR = MC.
9
Price ceilings usually create a ____________; while price floors usually create a ___________.
surplus; shortage
shortage; quota
quota; surplus
shortage; surplus
10
All of the following are reasons why economists think price controls are inefficient except:
resources are wasted
resources are not allocated efficiently
they have environmental benefits
they promote illegal activity
11
A popular vape company makes 100 pods for a cost of $50. Output rises to 110 pods, total cost is $60. What is MC?
$60
$2
$10
$1
12
All of the following people are considered employed EXCEPT:
John, who has been on vacation from his job for one week.
Peter, who only worked at his job for three hours last week.
Harold, who began his job 3 weeks ago on his 15th birthday.
Jen, who has been home sick for the last two weeks.
13
Which of the following will cause a shift in the supply curve for corn?
A new study shows the health benefit of consuming more corn.
Consumer incomes increase.
Thousands of tobacco farmers switch production to cotton.
There was a severe drought throughout the United States.
14
Human capital refers to:
the money businesses spend on machinery and finances.
the sophistication of the tools used in production.
the training, education, and expertise of a worker.
the infrastructure and machinery used to create a product.
15
A vendor had a revenue of $500. He raised the price, but revenue fell to $450. This means:
product is inelastic since his revenue decreased
the product is elastic since his revenue decreased
product is inelastic since his revenue increased
the product is elastic since his revenue increased
16
If a government decides to pay its debts by printing more money, the economy will likely:
experience problems with deflation.
experience excessive rates of inflation or hyperinflation
experience dramatic decreases in inflation rates.
high rates of inflation but very low levels of unemployment.
17
Which of the following markets most closely resembles perfect competition?
Automotives
Computers
Fast food restaurants
Agriculture
18
Increases in a country’s real GDP per capita usually mean:
the country has low levels of poverty.
its levels of poverty have increased.
its standard of living has increased.
the country has a high standard of living
19
If an economy is at full employment, it has an unemployment rate that is called the:
logarithm rate of unemployment.
frictionally-adjusted rate of unemployment.
natural rate of unemployment.
natural log rate of unemployment.
20
The costs incurred by a firm when no output is being produced are called:
marginal costs.
variable costs.
fixed costs.
average costs.
21
If both demand and supply increase in the market for smartphones:
price will increase but the change in quantity is unknown
price will remain unchanged and quantity will decrease
price will decrease and quantity will decrease
the change in price is unknown but quantity will increase
22
When the price of Good X decreases, the demand for Good Y increases. Good X and Good Y are:
unrelated goods.
inferior goods.
complementary goods.
substitute goods.
23
During recessions all of the following usually happen EXCEPT:
inflation increases
inflation decreases
unemployment increases
GDP decreases
24
When the economy experiences an expansion, it is most likely the case that:
Unemployment is increasing
Unemployment is decreasing
GDP is increasing
Inflation is increasing
25
A monopolist can increase his revenue through price discriminating because:
he has constant marginal costs
it will increase the consumer surplus
it will increase the demand for his product
some buyers will pay more while others will only pay less
26
In almost all circumstances, an increase in demand will cause:
price to decrease and quantity to decrease
price to decrease and quantity to increase
price to increase and quantity to increase
price to increase and quantity to decrease
27
When people have more money, they tend to purchase:
more normal goods and more inferior goods
fewer normal goods and more inferior goods
more normal goods and fewer inferior goods
fewer normal goods and fewer inferior goods
28
All of the following are characteristics of a perfectly competitive market EXCEPT:
limited entry and exit.
no long-run economic profits.
standardized product.
numerous sellers.
29
If using real GDP per capita for measurement, economists consider the poorest continent to be:
Africa
South America
Asia
Europe
30
The following graph depicts what?
increase in supply
decrease in supply
decrease in demand
increase in demand
31
All of the following are characteristics of a monopolistic market EXCEPT:
there is only one seller.
there are high barriers to entry.
there are no close substitutes.
a monopolist has no control over price.
32
One of the problems with the unemployment rate is that it:
is not measured accurately.
doesn't reflect workers who have given up looking for a job.
does not count any workers above the age of 55.
counts underemployed workers as unemployed workers.
33
The law of demand states that:
price has no effect on the amount consumers demand
high prices reduce demand, low prices will increase demand
as price decreases, consumers will demand less of a product
as price increases, consumers will demand more of a product
34
A cartel is:
usually achieved through tacit collusion.
another name for oligopoly.
A group who colludes to restrict output and raise prices
legal in the United States.
35
The price elasticity of demand measures:
the responsiveness of a good’s price to changes in demand
the amount of goods producers will supply at any given price
how often the demand curve increases or decreases
how sensitive the quantity demanded is to a change in price
36
Consider the following graph, why might have equilibrium moved from A to B?
People expect lemonade prices to rise, so they buy more now.
Lemonade went out of style as sugar and lemon prices dropped
Price of a subs. good increased as many stands were opening.
Consumer incomes increased but lemonade stands shut down.
37
Which of the following markets most closely resembles monopoly?
Diamonds
Gas Stations
Blue Jeans
Breakfast Cereals
38
Monopolies are generally regarded as harmful to the economy because:
prices are set below the competitive equilibrium level
they produce more than the market is willing to buy
part of consumer surplus is converted into a deadweight loss
they produce more pollution than firms in other markets
39
An excess amount of bananas in a competitive market would indicate that:
consumers want to buy more bananas than producers supply.
price is currently above the equilibrium point.
the market cannot find equilibrium price and quantity.
the demand curve will increase to consume the excess demand.
40
The Consumer Price Index (CPI):
only increases during times of economic expansion.
is equal to 200 in whichever year is considered the base.
uses a market basket to calculate current price levels.
consists of items a typical 18-year old might buy.
41
The law of supply states that:
as price increases, producers will supply more.
price has no effect on the amount producers supply.
price will only affect the supply if the item is inelastic.
as price decreases, producers will supply more.
42
In the long run, the economy of the United States has:
behaved in ways that cannot be explained by macroeconomics
steadily grown over time
steadily declined over time
experienced drastic fluctuations, but is stable now
43
A change in the quantity demanded is different than a change in demand because:
only the equilibrium quantity changes
change in the quantity demanded means the demand curve moved
only the equilibrium price changes
change in the quantity demanded means a movement along line
44
The main difference between the short run and the long run in economics is that the long run:
means that 1 month has passed.
means that 3 months have passed.
means enough time has gone by for people to adjust.
means people have not adjusted to all changes.
45
In perfect competition, a firm’s marginal revenue is:
equal to zero.
equal to the price of the product.
below the demand curve for the product.
downward sloping.
46
The business cycle describes the fact that:
an economy’s level of output fluctuates over the long-run.
politicians pass laws that cause the economy fluctuate.
unemployment levels are constantly changing.
inflation rates are constantly changing.
47
All of the following are characteristics of oligopoly EXCEPT:
there is mutual interdependence between the firms
it is only possible to make abnormal profit in the short run
Only a few firms with concentration ratios usually above 50%
there are high barriers to entry
48
A firm maximizes its profit, or minimizes its loss, when marginal revenue equals:
marginal product.
average total cost.
average variable cost.
marginal cost.
49
What shift is depicted in this graph?
Decrease in supply.
Decrease in demand.
Increase in demand.
Increase in supply.
50
In almost all circumstances, a decrease in supply will cause:
price to increase and quantity to increase.
price to increase and quantity to decrease.
price to decrease and quantity to decrease.
price to decrease and quantity to increase.