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EconWarrior Challenge Macro and Micro! Flashcards | StudBud
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EconWarrior Challenge Macro and Micro!
EconWarrior Challenge Macro and Micro!
45 terms
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StudBud Administration
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60 plays
lots of stuff mostly macro, some elasticity
Flashcards
45 cards
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Practice quiz
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Questions
45
Answers
1
Shifters of Demand are...
prefs, # consumers, price related goods, income, expectation
priceofresources, #producers, tech, tax&subsds, expectation
rumors
supply
2
If MC is $5, AVC is $7, ATC is $9, AFC must be
$4
$1
$2
Indeterminate
3
The vertical distance
CF
represents the
Average total cost of producing Q1 units of output
total cost of producing Q1 units of output
Average variable cost of producing Q1 units of output
Average fixed cost of producing Q1 units of output
4
What is the definition of opportunity cost?
The next best alternative that you give up.
All of the choices you could have made but didn't.
The chance that you will lose your money.
The money you spend to buy something.
5
If the costs of variable resources increases which of the following will happen?
AVC will decrease
AFC will Increase
MC will Increase
Fixed costs will decrease
6
What is the Average Variable Cost (AVC) at 4 units of output?
$4
$40
$10
$60
7
Open Market Operations involve:
Lowering the Reserve Requirement
Buying or selling Govt bonds/securities
buying groceries
Raising interest rates
8
Which nation has the absolute advantage in producing cars?
Both
Country B
Country A
Neither
9
Calculate elasticity of supply
1.44
4.38
.27
2.17
10
What is the Average Variable Cost at 10 units?
$15
$20
$200
$150
11
What is the total cost of producing 4 units?
$27
$20
$60
$13
12
Which one of the following would NOT explain the shift in LRAS shown in the diagram?
Improved infrastructure
Increased availability of resources
Lower average price level
Improved technology
13
Expansionary Fiscal Policy results in what?
Shifting AD to the right
Shifting AD to the left
Shifting AS to the right
Increased money supply
14
Price elasticity of demand measures...
buyers ability to switch
buyers knowledge of the product
how sensitive consumers are to a change in price
availability of substitutes
15
What determines Supply Elasticity?
Storage capacity
Availability of inputs: raw materials, trained people
Mobility of inputs
Time needed for production
16
What could most likely cause this triple shift which led to increased LRAS?
Increase in Government Spending
increase in Investment spending
increase in Exports
increase in Consumer spending
17
What is the marginal cost of producing the 2nd unit?
$13
$38
$25
$5
18
"IRAP" are the shifters of
market demand
aggregate demand
aggregate supply
unemployment rate
19
Which of the following is a possible opportunity cost of buying a new pair of $60 sneakers?
The $60 was a good decision because the sneakers get a lot of use
The $60 could not be spent on a new jacket
The $60 was a bad decision because the sneakers barely get worn
The $60 was a sale price, so the real value of the sneakers is $100
20
If the costs of Fixed Costs decreases which of the following will happen?
MC will decrease
ATC will decrease
AVC will decrease
MC will increase
21
If supply elasticity exceeds 1.0, supply is
unit elastic
elastic
all of these
inelastic
22
What impacts short run aggregate supply?
Quantity &/ Quality of FOPs
Costs of production
Quality of Factors of Production
Quantity of FOPs
23
What is the Variable Cost of 5 units?
$56
$30
$13
$43
24
If MC is $5, AVC is $7, ATC is $9, which of the following must be true
Average variable cost must be increasing
Average variable cost must be decreasing
Marginal cost must be increasing
Average total cost must be increasing
25
Which of the following is true regarding the calculation of Economic Profit
Total Revenue - Explicit Costs
(Explicit Costs + Implicit Costs) - Total Revenue
Total Revenue - (Explicit Costs -Implicit Costs)
Total Revenue - (Explicit Costs + Implicit Costs)
26
Absolute Advantage : _____
more sales
more production
more production costs
lower sales
27
All are shifters of demand EXCEPT
price
consumer expectations
resource prices
price of capital goods
28
What is the marginal cost of the 5th unit?
$40
$20
$60
$10
29
Expansionary fiscal policy typically causes the following
decreased employment
budget deficits
decreased output
all of the above
30
What is the average product of pizzas if 4 workers are hired?
10 Pizzas
15 Pizzas
30 Pizzas
20 Pizzas
31
What does LRAS look like on a graph?
positively-sloped line
vertical line
negatively-sloped line
horizontal line
32
Contractionary Monetary Policy results in:
AD shifts to the right
Reduced Money Supply
MD increases
Increased Money Supply
33
Which of the following is a true statement?
If MC is less than ATC, than ATC must be increasing.
If MC is increasing then ATC must be increasing.
If MC is decreasing then ATC must be decreasing.
If MC is greater than ATC, than ATC must be increasing.
34
How should contractionary monetary policy affect interest rates?
lower them
raise them
35
What is Fiscal Policy?
How a government adjusts its spending levels and tax rates
How a country controls the supply of money
When a government regulates businesses
36
In the stage of decreasing marginal returns, which of the following must be true?
Marginal product is negative
Total product is increasing at a decreasing rate
Marginal product is increasing
Total product is decreasing
37
Short Run Aggregate Supply
Vertical because of flexible wages and prices
Equal to nation's PPC
Upward sloping due to sticky wages and prices
Equal to nation's GDP
38
Fiscal policy refers to the:
A
B
D
C
39
This shifts both SRAS and LRAS to the right
All of the above
Productivity
New technologies
Development of human capital
40
Which of the following would most likely lead to economic growth (LRAS to shift right)?
increase consumer spending
investment in capital
expansionary fiscal policy
expansionary monetary policy
41
Price Elasticity of Demand can change over time because......
More can be supplied
Price will decrease
Over time substitutes are available
Price will increase
42
Monetary policy relates to _____________ while fiscal policy relates to _____________.
Money supply; government spending
Government spending; money supply
Money supply; Loanable Funds
Government spending; Consumer Price Index
43
What is the Total Cost at 10 units?
$150
$15
$200
$20
44
All of the following are determinants of demand elasticity except
whether the product has utility
whether the product purchased requires a lot of income
whether there are adequate substitutes for the product
whether the purchase of the product can be delayed
45
Fiscal policy refers to:
action by Congress to overrule budget cuts by the president
the adjustment of GDP for inflation
the purchase & sale of US gov't securities
government spending & taxation
