Sei sulla pagina 1di 38

WGU FPC1

MicroEconomics
FOR MORE OF THIS COURSE AND ANY
OTHER COURSES, TEST BANKS, FINAL
EXAMS, AND SOLUTION MANUALS
CONTACT US
AT WHISPERHILLS@GMAIL.COM

For Complete Work Contact us


At
WhisperHills@Gmail.com

1. 2. Distinguish between quantity supplied and


supply, and explain what determines supply.
2. 2. Use a graph to illustrate the effect of each event.
The following events occur one at a time in the
market for cell phones:

3. 3 Anti-trust policy debates


4. 3. Does any event (or events) illustrate the law of demand? The following events occur one at a
time in the market for cell phones:

5. 3. Explain how demand and supply determine price


and quantity in a market, and explain the effects of
changes in demand and supply.
6. 3 features of PPF
7. 3 methods government uses to cope with external
costs
8. 3 methods used to achieve efficient use of a common
3 traditional aurguments for/against international
trade
9. 4 Topics that generate a lot of heat
10. 4 types of externalities
11. 5) A marginal external cost of a product is equal to *
(See Chapter 10, section 10.1)
12. 6) The cost of producing an additional unit of a good or service that is borne by the producer of
that good or service
13. 7) An example of a common resource is *
14. 8) Fish in the ocean are an example of ________ because they are ________. *
(See Chapter 11, section 11.1)
15. 9) Which of the following characteristics are use by
economists to describe a public good (Choose 2). *
16. The ability of a person to perform an activity or
produce a good or service at a lower opportunity
cost than anyone else?
17. Ability to Pay Principle
18. absolute advantage
19. Actions that satisfy wants? Haircuts and rock
concerts are examples.
20. Advanced economies are the?
21. Allocative efficiency occurs
22. Along the production possibilities frontier, the
opportunity cost of producing one more unit of a
good is the quantity of another good gained.
23. And when households choose the quantities of
goods and services to buy, they respond to?

24. Anti-trust law


25. Any arrangement that brings buyers and sellers
together and enables them to get information and
do business with each other?
26. As long as the marginal benefit exceeds or equals
the marginal cost,
27. Assume a market is in equilibrium. There is an
increase in supply, but no change in demand As a
result the equilibrium price ________, and the
equilibrium quantity ________.
28. Attainable and Unattainable Combinations
29. Average cost pricing rule
30. Average income tax rate
31. Average Product
32. Average Total Cost
33. Barrier of entry
34. Because of an unexpected freeze, there are fewer
strawberries on the market. This will result in:
35. Because of an unexpected freeze, there are fewer
strawberries on the market. This will result in:
36. Benefit
37. Benefits of PPF
38. Benefits Principle
39. The benefit that arises from a one-unit increase in
an activity. It is measured by what you are
WILLING TO GIVE UP to get one additional unit of
it?
40. The best thing you must give up to get something?
41. Breaking the goods and services down into smaller
categories,
42. Budget Line
43. Calculate marginal revenue curve=
44. Calculate Opp cost
45. Calculating the Cost
46. Capital

47. Capital also includes inventories of unsold goods or


of partly finished goods on a production line. And
capital includes what is sometimes called
infrastructure capital, such as?
48. Capital Goods
49. capital goods
50. Capitol
51. Capture theory
52. Cartel
53. A central idea of economics is that by observing
changes in incentives, we can predict how?
54. Change in demand
55. Change in quantity demanded
56. change in quantity demanded
57. Change in Quantity Demanded Versus Change in
Demand
58. Change in Quantity Supplied Versus Change in
Supply
59. change in supply
60. A change in the demand for apples could result
from any of the following EXCEPT
61. A Change in the Price of a Complement in
Production
62. A Change in the Price of a Substitute in Production
63. Change in the Quantity Demanded Versus Change
in Demand
64. A change in the quantity of a good that people plan
to buy that results from a change in the price of the
good with all other influences on buying plans
remaining the same?
65. A change in the quantity of a good that suppliers
plan to sell that results from a change in the price
of the good

66. A change in the quantity that people plan to buy


when any influence on buying plans other than the
price of the good changes
67. A change in the quantity that suppliers plan to sell
when any influence on selling plans other than the
price of the good changes?

Chapter 13: Consumer Choice and


Demand
1. How do consumers determine the
quantities goods they can consume given
their budget (income) and prices?
2. What is the diamond-water paradox and
what does marginal utility theory tell us
about it?

Chapter 14: Production and Cost


1. How do we calculate economic profit
given revenue and cost data?
2. How do costs affect a firm's output in the
short run?
3. What is the long-run average cost
curve?

Chapter 15: Perfect Competition


1. How does a firm in a perfectly
competitive market maximize profit?
2. How are equilibrium output, price, and
economic profit determined in a perfectly
competitive market in the short-run?
3. How are equilibrium output, price, and
economic profit determined in a perfectly
competitive market in the long-run?

Chapter 16: Monopoly


1. What are the characteristics of
monopoly?
2. What are the different price setting
strategies that can be employed by a
monopolist?
3. How does a single-price monopoly set
price?
4. How do equilibrium price and output
differ in monopoly versus a perfectly
competitive market?
5. What are the different methods of
monopoly regulation?

Chapter 17: Monopolistic Competition


Chapter 18: Oligopoly
1. What are the characteristics of
monopolistic competition?
2. How do firms in monopolistic competition
maximize profit?
3. What is the effect of advertising in
monopolistically competitive markets?
4. What are the characteristics of
oligopoly?
5. What does game theory (The Prisoner's
Dilemma) tell us about the decisions
oligopolists must make?

68. The choices that are best for society as a whole?


69. The choices that are best for the individual who
makes them?
70. A choice that is made by comparing all the relevant
alternatives systematically and incrementally?
71. A choice that uses the available resources to best
achieve the objective of the person making the
choice?
72. Circular flow model
73. The circular flow model is useful in showing us
some key aspects of the economy:
74. A circular flow model shows the interrelationship
between the ________ market and the ________
markets.
75. Circular Flows in the Global Economy
76. Coarse Therorem
77. Common resource
78. A commonsense way of systematically checking
what works and what doesn't work?
79. Comparative advantage
80. comparative advantage
81. Complement
82. complement

83. Complementary goods


84. complement in production
85. The condition that arises because wants exceed
the ability of resources to satisfy them (our inability
to satisfy all our wants)?
86. Consists of the jobs and businesses that produce
and use computers and equipment powered by
computer chips?
87. constant returns to scale
88. Consumer surplus
89. Consumer surplus is equal to
90. Consumer surplus occurs when marginal benefit
exceeds the market price.
91. consumption goods and services
92. Consumption goods/services
93. Copyright
94. Correlation
95. A cost is something you give up to get something in
return, which is the benefit. Comparing the costs
and benefits to make a rational choice is called
making a choice on the margin, which involves
weighing all the relevant pros and cons. Incentives
are valuable because they help form decisions.
Positive incentives act as rewards, and negative
incentives act as penalties.
96. A country produces only apples and bananas.
Moving from point A to point B along its production
possibilities frontier, 5 apples are forgone and 4
bananas are gained. What is the opportunity cost of
a banana?
97. Cross elasticity of demand
98. Deadweight Loss
99. Deadweight loss is a loss to society as a whole.
100.

Decrease in Both Demand and Supply

101.

Decrease in Both Supply and Demand

102.
Decrease in Demand and Increase in
Supply
103.
A decrease in demand shifts the demand
curve leftward; a decrease in supply shifts the
supply curve leftward
104.
A decrease in the demand for chocolate
with no change in the supply of chocolate will
create a ________ of chocolate at today's price,
but gradually the price will ________.
105.

Decreasing marginal returns

106.

Demand Curve

107.

Demand curve

108.

The demand curve has a positive slope

109.
The demand curve show the negative
relationship between the quantity demanded of a
good and its price
110.
The demand for a good and the price of
one of its complements move in opposite
directions.
111.The demand for a good and the price of one of its
substitutes move in the same direction.
112.
The demand for a good is elastic if a
substitute for it is easy to find.
113.
The demand for a good is inelastic if a
substitute for it is hard to find.
114.
-Demand is the relationship between the
price of a good and how much of that good
consumers want to purchase (all elements being
equal).
-Supply is the relationship (with all elements being
equal) between the price of a good and how much
of that good is produced or available.
- Quantity demanded and quantity supplied
represent specific amounts at a specific price.
115.
Demand is the relationship between the
quantity demanded of a good and a buyer's income
116.

Demand Schedule

117.

demand Schedule

118.

Deregulation

119.

Derived demand

120.
Describe the flows in the circular flow
model in which consumption expenditure,
purchases of new national defense equipment, and
payments for labor services appear. Through which
market does each of these flows pass?
121.
A description of some feature of the
economic world that includes only those features
assumed necessary to explain the observed facts?
122.

Determinates of Demand

123.

Developing economies are the?

124.
Differences in the total value of production
between advanced and developing economies
125.

Diminishing marginal utility

126.

Diminshing marginal utility

127.
Disagreements that can be settled by
facts? Statements about what is. It might be right or
wrong and we can discover which by careful
observation of facts. It could be right or wrong, and
it can be tested.
128.
Disagreements that can't be settled by facts? Statements about what ought to be, depend
on values and cannot be tested. It doesn't assert a fact that can be checked.
129.
Diseconomies of scale
130.

Disposable Income

131.
Distinguish between cost and price and
define producer surplus.
132.
Distinguish between quantity demanded
and demand, and explain what determines
demand.
133.
Distinguish between value and price and
define consumer surplus.
134.

Distinquishing features of oligopoly

135.
The distribution of income among
households?
136.
Does this influence change the quantity
supplied or does it change supply? The test is: Did
the price change or did some other influence
change?

137.

Duopoly

138.

Earnings sharing regulation

139.

Economic Depreciation

140.

economic experiments

141.

Economic Growth

142.

Economic growth

143.

economic model

144.

Economic profit

145.

Economics

146.

Economics as a policy tool

147.
Economics is the social science that
studies ___________.
148.

Economies of Scale

149.
An economist's goal is to answer three
questions:
150.

Economists measure benefit as?

151.
An effective price support ________
producers and ________ a deadweight loss.
152.

Effects of change in demand

153.

Effects of changes in supply

154.

Efficent scale

155.
Efficient and Inefficient Production,
Tradeoffs, and Free Lunches
156.

Elastic demand

157.

Elastic supply

158.

Emerging market economies are the?

159.
Emissions from all new vehicles must be
cut from 354 grams to 250 grams. To meet this new
standard, the price of a new vehicle will rise by
$1,300.
Calculate the opportunity cost of reducing the
emission level by 1 gram.
160.

Entrepreneurship

161.
Equals the change in the value of the
variable measured on the y-axis divided by the
change in the value of the variable measured on
the x-axis?
162.

equilibrium price

163.

Equilibrium Price and Equilibrium Quantity

164.

equilibrium quantity

165.
Evaluate the efficiency of the alternative
methods of allocating resources.
166.

Excess capacity

167.
An exchangegiving up one thing to get
something else?
168.
An exchangegiving up one thing to get
something else?
169.

Excludable

170.

Excludable

171.

Expected Future Income and Credit

172.

Expected Future Prices

173.
Expected future prices
174.
Explain and illustrate the concepts of
scarcity, production efficiency, and tradeoff using
the production possibilities frontier.
175.
Explain how a price ceiling works and show
how a rent ceiling creates a housing shortage,
inefficiency, and unfairness.
176.
Explain how a price floor works and show
how the minimum wage creates unemployment,
inefficiency, and unfairness.
177.
Explain how a price support in the market
for an agricultural product creates a surplus,
inefficiency, and unfairness.
178.
Explain the free-rider problem and how
public provision might help to overcome it and
deliver an efficient quantity of public goods.
179.
Explain the main ideas about fairness and
evaluate the fairness of the alternative methods of
allocating scarce resources.

180.
Explain what makes production possibilities
expand.
181.

Explicit cost

182.

export goods and services .

183.

Export Goods/services

184.

Exports

185.
Externalities are the result of costs or
benefits that are not included in prices.
186.

Externality

187.

Externality

188.

Factor markets

189.

Factor Prices

190.

Factors of production

191.

Factors of production are paid incomes:

192.
Federal Government Expenditures and
Revenue
193.
The federal government finances its
expenditures by collecting a variety of taxes. The
main taxes paid to the federal government are
194.
The federal government's major
expenditures provide?
195.
a decrease in supply shifts
the supply curve leftward
196.

financial capital

197.
The flows of payments made in exchange
for the services of factors of production and of
expenditures on goods and services?
198.
The flows of the factors of production that
go from households through factor markets to firms
and of the goods and services that go from firms
through goods markets to households?
199.
Explain the effect of each event on the
demand for cell phones.
200.

For whom?

201.

For Whom in the Global Economy?

202.

Four-Firm concentration ratio

203.

Four market structure

204.

Free rider

205.

free rider

206.
A free rider can enjoy the benefits of a
public good because public goods are
nonexcludable.
207.

Free Transferable quota

208.
The gain or pleasure that something
brings? what you are willing to give up in order to
get one additional unit of it.
209.

Game Theory

210.
A general tendency for the value of a
variable to rise or fall?
211.
The "gifts of nature," or natural resources,
that we use to produce goods and services? It
includes minerals, energy, water, air, and wild
plants, animals, birds, and fish. Some of these
resources are renewable, and some are nonrenewable.
212.

Globalization

213.
A good for which demand decreases when
income increases and demand increases when
income decreases?
214.
A good for which demand increases when
income increases and demand decreases when
income decreases?
215.
Goods and resources that are rival but
nonexcludable are common resources
216.

Goods and services

217.
Goods and services are produced by
using?
218.
Goods and services are produced using
four factors of production:
219.
220.

Goods and services that are bought by governments?


.

221.

Goods markets

222.
Goods that are nonrival and nonexcludable
are public goods
223.
Goods that are nonrival but excludable are
goods produced by a natural monopoly
224.
Goods that are rival and excludable are
private goods
225.
A good that can be consumed in place of
another good?
226.
A good that can be produced in place of
another good
227.
A good that is consumed with another
good?
228.
A good that is produced along with another
good?
229.

Government expenditures

230.

government goods and services

231.

Government goods/services

232.

Government license

233.
Governments also interact with households
and firms in other ways.
234.

Governments circular flow

235.

Governments in the Circular Flow

236.
Governments spend an increasing share of
a nation's gross domestic product because the
marginal benefits of public goods are less than their
marginal costs.
237.
Governments use four sets of tools to
influence international trade and protect domestic
industries from foreign competition.
238.
A graph of the relationship between the quantity demanded of a good and its price when
all the other influences on buying plans remain the same?
239.
A graph of the relationship between the
quantity supplied of a good and its price when all
the other influences on selling plans remain the
same?

240.
A graph of the value of one variable against
the value of another variable?
241.
The graph shows the labor market for fastfood workers in Sioux City. If the government sets a
minimum wage of $7 an hour, then the labor market
is ________ and marginal benefit ________
marginal cost.
242.
A graph that measures time on the x-axis
and the variable or variables in which we are
interested on the y-axis?
243.
A graph that shows the values of an
economic variable for different groups in a
population at a point in time?
244.
Harry owns a clothing store. In summer, he
is able to charge a higher price for the white cotton
summer dress. This will:
245.
246.

Herfindahl Hirschman Index

247.

An HHI close to 0

248.

An HHI less than 1800

249.

An HHI more than 1800

250.

High Concentration

251.
A higher cost of production causes a
decrease in supply
252.

Horizontal equity

253.
Households and firms in the U.S. economy
interact with households and firms in other
economies in two main ways: They buy and sell
goods and services and they borrow and lend. We
call these two activities?
254.
How can government actions lead to more
efficient outcomes when negative externalities are
present?
255.
...
256.
How can we analyze production to
determine if it is efficient or inefficient and to
understand the tradeoffs involved?
257.
258.
How do absolute advantage, comparative
advantage, and specialization affect trade?

259.
How do changes in demand and supply
affect market equilibrium?
260.
How does a new Starbucks in Beijing,
China, influence self-interest and the social
interest?
261.
How does Facebook influence self-interest
and the social interest?
262.
How does the delivery of public goods and
services lead to external benefits?
263.
...
264.

How do we produce?

265.

How in the Global Economy?

266.

How to figure surplus

267.

Human Capital

268.

Human capital improves?

269.
The human resource that organizes labor,
land, and capital to produce goods and services?
They are creative and imaginative.
270.
Identify the cases where the market output
is efficient.
271.
If an increase in the daily price of "Animal
world" zoo tickets causes an increase in demand
for the neighboring "Animal Safari" daily tour
tickets, then we can conclude that:
272.
If a society moves from a period of time
with significant unemployment to a time with full
employment, its production possibilities frontier will
273.
If each additional hour spent studying
reduces time available for sleep and leisure, then at
some point a student decides the additional benefit
is not worth the cost.
274.
If marginal social benefit exceeds marginal
social cost,
275.
If marginal social cost exceeds marginal
social benefit,
276.
If the beneficiary of a public good or
service does not face the marginal cost of its
provision, the public good is underproduced.
277.
If the price elasticity of demand equals 1,

278.
If the price elasticity of demand is greater
than 1,
279.
1

If the price elasticity of demand is less than

280.
If the price floor is set above the
equilibrium price,
281.
If the price of movie tickets decreases, what might we expect on the demand side for
movie tickets and popcorn at the movie theater complex?
282.
If there is unemployment in an economy,
then the
283.
If tuition at a college is $30,000 and the external benefit of graduating from this college is
$10,000, then *
284.
If Wendy can produce more of all goods
than Tommy in an hour, then
285.
illustrates the recent changes in the
production of defense goods and services using the
PPF.
286.

Implicit cost

287.
288.

Import Quota
Imports

289.

incentive

290.
Income earned by an entrepreneur for
running a business?
291.

Income Effect

292.

Income Elasticity of Demand

293.

Income paid for the services of labor?

294.

Income paid for the use of capital?

295.

Income paid for the use of land?

296.
are:

The incomes for those factors of production

297.

Increase in Both Demand and Supply

298.

Increase in Both Supply and Demand

299.
Increase in Demand and Decrease in
Supply

300.
An increase in demand causes a shift of
the demand curve to the right
301.
An increase in demand shifts the demand
curve rightward; an increase in supply shifts the
supply curve rightward.
302.
An increase in the price of bottled water
results in a decrease in the demand for bottled
water
303.
An increase in the price of bottled water
results in an increase in the supply of bottled water
304.

Increasing Marginal returns

305.

Independent

306.

Indifference curve

307.

Individual Demand and Market Demand

308.
Individuals or groups of people living
together?
309.

Individual Supply and Market Supply

310.

Individual transferable quota (ITQ)

311.

Inelastic demand

312.

Inelastic supply

313.

Inferior Good

314.

inferior good

315.
The influences on the price elasticity of
demand fall into two groups:
316.

in simpler terms.

317.
The institutions that organize the
production of goods and services?
318.
The International Monetary Fund classifies
countries into what two broad groups of
economies?
319.
In the areas of public education and health
care, government action can provide additional
resources to increase the quantity of these goods
and services while also increasing their social
benefit. Three approaches have been used to
make the allocation more efficient:

320.
In the circular flow model, money flows in
the opposite direction of the flows of goods and
services.
321.
In the circular flow model, there are two
types of flow:
322.
In the circular flow model, which of the
following items is a real flow?
323.
In the following three news items, find
examples of the what, how, and for whom
questions: "With more research, we will cure
cancer"; "A good education is the right of every
child"; "Congress raises taxes to curb the deficit."
324.
In the market for cell phones, which of the
following events increases the supply of cell
phones?
325.
In the market for jeans, which of the
following events increases the demand for a pair of
jeans?
326.
In the summer of 2008, the price of
gasoline increased greatly. If the demand curve for
gasoline did not shift, which of the following
occurred?
327.

Invention

328.
In winter, the quantity supplied of snow
shovels increased. This could be because of:
-

is a graph of the relationship


between the quantity supplied of
a good and its price when all the
other influences on selling plans
remain the same.
-The upward slope of the supply
curve illustrates the law of
supply.
-Along the supply curve, when
the price of the good rises, the
quantity supplied increases.

329.

ITQ's

330.

Key factors that change the supply of labor

331.
The knowledge and skill that people obtain
from education, on-the-job training, and work
experience?
332.

Labor

333.

Land

334.
The largest share of total goods and
services produced in the United States are of this
type:
335.
Linda enjoys watching movies in movie
theaters. During her annual review at work, she
was told that her income will go up by 10%
because of her above-average performance. This
will result in: *
336.

Linear Relationship

337.
A list of the quantities demanded at each
different price when all the other influences on
buying plans remain the same?
-A demand schedule shows information in a table.
338.
A list of the quantities supplied at each
different price when all the other influences on
selling plans remain the same
339.

Long run

340.

Long-run average cost curve

341.

Lorenz curve

342.

Low concentration

343.

Low Rent

344.
Lumber companies make timber beams
from logs. In the process of making beams, the mill
produces sawdust, which is made into pressed
wood. In the market for timber beams, the following
events occur one at a time:
The wage rate of sawmill workers rises.
The price of sawdust rises.
The price of a timber beam rises.
The price of a timber beam is expected to rise
next year.
A new law reduces the amount of forest that can
be cut for timber.
A new technology lowers the cost of producing
timber beams.
Does any event (or events) illustrate the law of
supply?
345.
Lumber companies make timber beams
from logs. In the process of making beams, the mill
produces sawdust, which is made into pressed

wood. In the market for timber beams, the following


events occur one at a time:
The wage rate of sawmill workers rises.
The price of sawdust rises.
The price of a timber beam rises.
The price of a timber beam is expected to rise
next year.
A new law reduces the amount of forest that can
be cut for timber.
A new technology lowers the cost of producing
timber beams.
Explain the effect of each event on the supply of
timber beams.
346.
Use a graph to illustrate the effect of each event.
347.
348.

Luxury Versus Necessity

349.

Macroeconomics

350.

Main influences of buying plans

351.

Main influences of selling plans

352.
Many Americans are selling their used cars
and buying new fuel-efficient hybrids. Other things
remaining the same, in the market for used cars,
________ and in the market for hybrids ________.
353.

Margin

354.

MARGINAL BENEFIT

355.

Marginal Benefit

356.

Marginal benefit

357.
cost.

Marginal benefit always equals marginal

358.
Marginal benefit measures the opportunity
cost of producing or consuming.
359.
The marginal benefit of a good is the same
as the good's demand curve.
360.
True
361.
Marginal benefit usually increases with
increased quantity.
362.

MARGINAL COST

363.
364.

Marginal Cost

365.

Marginal cost

366.
the marginal cost curve of a public good
slopes upward.
367.
The marginal cost of a good is the same as
the good's supply curve.
368.

Marginal cost pricing rule

369.
The marginal economic benefit of a public
good is equal to the point where market demand
equals market supply of the good.
370.

Marginal External Benefit

371.

Marginal external cost

372.

Marginal external cost

373.

Marginal income tax rate

374.

Marginal Private Benefit

375.
marginal private benefit (the benefits that
the individual gains) plus marginal external benefit
(the benefits that accrue for the public)
376.

Marginal private cost

377.

Marginal private cost

378.

Marginal Product

379.

Marginal rate of sustitution

380.

Marginal revenue

381.

Marginal revenue < Marginal cost

382.

Marginal revenue = Marginal cost

383.

Marginal Revenue > Marginal cost

384.

Marginal Social Benefit

385.

Marginal social benefit for a private good

386.

Marginal social benefit for a public good

387.

Marginal social cost

388.

Marginal social cost

389.

Marginal Utility

390.

Market

391.

Market Demand

392.

market equilibrium

393.
Market equilibrium is efficient because the
sum of consumer surplus and producer surplus is
the largest at the equilibrium.
394.
Market for factors of Production: 4 factors
of production
395.

Market income

396.
Market price is the only way for an economy to allocate Markets in which goods and
services are bought and sold?
397.
Markets in which the services of factors of
production are bought and sold?
398.

market supply

399.

Markup

400.

Median Voter Theory

401.

Medium concentration

402.
but they almost always involve three
elements:
403.

Microeconomics

404.

A mixed good is

405.
Mixed goods tend to be underproduced
because the marginal cost of producing them
exceeds the marginal social benefits.
406.
A model of the economy that shows the
circular flow of expenditures and incomes that
result from decision makers' choices and the way
those choices interact to determine what, how, and
for whom goods and services are produced?

407.
Money flows move in the opposite direction
of real variable flows.
408.

Money income

409.
410.

Monopolistic competition
Monopoly

411.
The movie theater complex where Linda
usually watches movies is selling its tickets at a
20% discount to students and senior citizens. This
will result in: *
412.

Narrowness of Definition

413.

Nash equilibrium

414.

Natural experiments

415.

Natural monopoly

416.

Negatie income tax

417.

negative consumption externality.

418.
Negative externalities result in
underproduction.
419.

Negative externality

420.

Negative/Inverse relationship

421.
422.

negative production externality.


Nonexcludable

423.

Nonexcludable

424.

Non-renewable natural resources

425.

Nonrival

426.

nonrival

427.

Normal Good

428.

normal good

429.

Normal profit

430.

Normative Statements -

431.

Number of buyers

432.

Number of Sellers

433.
Objects and actions that people value and
produce to satisfy human wants?
434.
Of the four groups of goods and services
which has the largest share and a share that
doesn't fluctuate much?
435.

Oligopoly

436.
437.

OPPORTUNITY COST
Opportunity Cost

438.

Opportunity Cost Is a Ratio

439.

Opportunity cost of a cell phone

440.
The opportunity cost of producing one
more unit of a good is calculated by dividing the
441.

OPPORTUNITY COSTS

442.
The opportunity cost that arises from a
one-unit increase in an activity. It is what you MUST
GIVE up to get one additional unit of it?
443.

"Other things remaining the same."

444.

Other things remaining the same,

445.
Other things remaining the same, a fall in
the price of peanuts will ________.
446.
-Other things remaining the same, if the
price of a good rises, the quantity demanded of that
good decreases; and if the price of a good falls, the
quantity demanded of that good increases.
- if the price of an iPhone falls, people will buy more
iPhones; or if the price of a baseball ticket rises,
people will buy fewer baseball tickets.
447.
Other things remaining the same, if the
price of a good rises, the quantity supplied of that
good increases; and if the price of a good falls, the
quantity supplied of that good decreases
448.

Our economy grows when we

449.
The output of a production process
designed to be used later in other production
processes
450.

The output per unit of input

451.

Overproduction reduces deadweight loss.

452.
Patent
453.
An exclusive right granted to the inventor of
a product or
454.
A payment by the government to producers
to lower their cost of production
455.

Payoff matrix

456.

Perfect Competition

457.

Perfectly elastic demand

458.

Perfectly elastic supply

459.

Perfectly inelastic demand

460.

Perfectly inelastic supply

461.

Perfect price discrimination

462.

Physical Capital Differences

463.
Planning for long-term investments, like
buildings and equipment, are known as capital
investments
464.

positive consumption externality.

465.

Positive/Direct Relationship

466.

Positive externality

467.

positive production externality.

468.

Positive Statements

469.
The PPF is a valuable tool for illustrating
the effects of scarcity and its consequences. The
PPF puts three features of production possibilities
in sharp focus. They are the distinctions between?
470.

Predatory pricing

471.

Predicting Price Changes: Three Questions

472.

Preferences

473.
The price at which the quantity demanded
equals the quantity supplied
474.

Price cap regulation

475.
A price ceiling in the market for gasoline
that is below the equilibrium price will lead to

476.
A price ceiling set below the equilibrium
price is binding and has several effects.
477.

Price-discriminating monopoly

478.

Price elasticity of demand

479.

price elasticity of demand

480.

Price elasticity of supply

481.

A price floor is a price

482.

Price of Elasticty of Demand

483.

Prices of Resources and Other Inputs

484.
Price support
485.
A price support wherein the government
buys any surplus output
486.

Price Taker

487.

Principle of minimum differentiation

488.

principle of minimum differentiation

489.

Prisoners' dilemma

490.

Private good

491.

Producer surplus

492.
Producer surplus is the ________ summed
over the quantity produced.
493.
Producer surplus occurs when marginal
cost exceeds the market price.
494.

Product competition

495.

Production efficient

496.
497.

Production Efficienty
Production is possible with

498.

Production Possibilities Frontier

499.
The production possibilities frontier
illustrates the
500.
The production possibilities frontier is
bowed outward because of increasing opportunity
costs.
501.

The production possibilities frontier is the

502.

Production Possibilities Frontier (PPF)

503.
The productive resources that are used to
produce goods and services? Includes land, labor,
capital, and entrepreneurship.
504.
505.

Productivity

506.

productivity

507.

Progressive Tax

508.

Property rights

509.

Proportional Tax

510.

Proportion of Income Spent

511.
Provide three examples of wants in the
United States today that are especially pressing but
not satisfied.
512.

Public Franchise

513.

Public good

514.
Public provision of mixed goods is efficient
if the marginal cost of public provision exceeds
marginal social benefits.
515.

The quality of labor depends on what?

516.
Quantities where marginal benefits (MB)
exceed marginal costs (MC) are
517.
Quantities where marginal cost exceeds
marginal benefit are
518.
The quantity bought and sold at the
equilibrium price
519.

Quantity demanded

520.

quantity demanded

521.
The quantity demanded is measured as an
amount per?
522.

quantity supplied

523.

The quantity supplied is one quantity at

524.

rate of return regulation

525.

Rational Choice

526.

A rational choice is ___________.

527.

Rational ignorance

528.

Rational ignorance

529.

Real variable flows include:

530.

Regressive Tax

531.

Regulation

532.
Related goods are either substitutes in
production or
533.
A relationship between two variables that
move in opposite directions?
534.
A relationship between two variables that
move in the same direction?
535.
line?

A relationship that graphs as a straight

536.
537.

Relative Price
Rent controls

538.

Rent Seeking

539.

Resale price maintenance

540.
Resources might be allocated by using any
one or some combination of the following methods:
541.

Revenue Implications

542.
A reward or a penaltya "carrot" or a
"stick"that encourages or discourages an action?
543.

Rival

544.

rival

545.
Rule that leads to the greatest utility from
all goods and services consumed 546.

Scarcity

547.

Self-Interest

548.

Shift in Demand Curve

549.

Short run

550.

-shows how the PPF can expand.

551.

Shutdown point

552.
Signal
553.
Similarly, when firms choose the quantities
of goods and services to produce and offer for sale
in goods markets, they respond to?
554.

single-price monopoly

555.
A situation in which the economy is getting
all that it can from its resources and cannot
produce more of one good or service without
producing less of something else?
556.
A situation in which the quantity demanded
exceeds the quantity supplied?
557.
A situation in which the quantity supplied
exceeds the quantity demanded?
558.
A situation that arises in the ordinary
course of economic life in which the one factor of
interest is different and other things are equal (or
similar)?
559.
Six ideas define the economic way of
thinking:
560.

Slope

561.

Slope of the PPF

562.

Social Interest

563.

SOCIAL INTEREST EFFICIENCY EX.

564.

SOCIAL INTEREST EQUITY EX.

565.
SOCIAL INTEREST HAS TWO
DIMENSIONS
566.
EFFICIENCY AND EQUITY
567.
The social interest has what two
dimensions?
568.

Social interest theory

569.
State and Local Government Expenditures
and Revenue
570.
State and local governments finance these
expenditures by collecting taxes and receiving

transfers from the federal government. The main


taxes paid to state and local governments are
571.
The state and local governments' major
expenditures are to provide?
572.

A state of allocative efficiency

573.

Statistical investigations

574.

Strategic Behavior

575.

Strategies

576.
The study of the aggregate (or total) effects
on the national economy and the global economy
of the choices that individuals, businesses, and
governments make?
577.
The study of the choices that individuals
and businesses make and the way these choices
interact and are influenced by governments?
578.
Subsidies increase the price to consumers
and result in overproduction.
579.
Subsidies provide a payment to producers
to lower the marginal cost of production.
580.
Subsidies reduce the cost to producers and
result in overproduction.
581.

Subsidy

582.

Substitute

583.

substitute

584.

Substitute goods

585.

substitute in production

586.

Substitution Effect

587.

supply curve

588.

The supply curve has a positive slope

589.
The supply curve shows the negative
relationship between the quantity supplied of a
good and its price
590.
Supply is the relationship between the
quantity supplied of a good and a supplier's cost

591.

Supply Schedule

592.

Supply Schedule and Supply Curve

593.
Suppose the marginal cost of the fourth
unit of a public good is $20. If Mark and Judy are
the only members of society, and they are willing to
pay $10 and $11, respectively, for the fourth unit of
the good, then the efficient quantity is
A) 3 units.
B) 4 or more units.
C) 0 units.
D) More information is needed about the marginal
benefits of the first, second, and third units of the
public good.
E) None of the above answers is correct.
594.
4 or more units.
595.
Supposing chocolate cake and cheesecake
are substitutes, an increase in the price of
chocolate cake increases the demand for
cheesecake
596.
The sustained expansion of production
possibilities.
597.

Tariff

598.
The tendency for the values of two
variables to move together in a predictable and
related way?
599.
-The amount of any good, service, or
resource that people are willing and able to buy
during a specified period at a specified price?
-Quantity demanded represents the cost of one
specific quantity at one specific price.
- Quantity demanded is affected by price, but
demand itself can be influenced by a variety of
factors.
600.
-The amount of any good, service, or
resource that people are willing and able to sell
during a specified period at a specified price
- For example, when the price of spring water is
$1.50 a bottle, a spring owner decides to sell 2,000
bottles a day. The 2,000 bottles a day is the
quantity supplied of spring water by this individual
producer.
-represents a specific good at a specific price.
-Quantity supplied is affected by price, but supply
itself can be affected by several factors. Among
those factors are the cost of related goods, the
prices of resources (such as what it costs to
manufacture the item), the number of sellers, and

worker productivity.
-one quantity at one price.
601.
There are many points on a production
possibilities frontier that are equally efficient in
terms of value.
602.
-The relationship between the quantity
demanded and the price of a good when all other
influences on buying plans remain the same
-demand is a list of quantities at different prices.
-demand can be illustrated by a demand schedule
or a demand curve.
-Demand can be affected by price but also by a
number of other factors. Among these are the price
of substitute goods, the expectation that prices will
increase at some point in the future, changes in
personal income, and a change in consumers'
personal preferences.
603.
-The relationship between the quantity
supplied and the price of a good when all other
influences on selling plans remain the same
-is a list of quantities at different prices. Supply can
be illustrated by a supply schedule, a table, or a
supply curve.
604.

Three features of all games

605.
Three main factors influence the ability to
find a substitute for a good:
606.
The three main methods that might be
used to achieve the efficient use of a common
resource are
607.

Time Elapsed Since Price Change

608.
To calculate the benefits, or the marginal
social benefit, you
609.
To determine the efficient quantity of a
public good to supply, *
610.
To graph a relationship that involves more
than two variables, we use assumption?
611.
To study economic growth, we must
change the two goods and look at the production
possibilities for a consumption good and a capital
good.
612.

Total Product

613.

Total revenue

614.
Total revenue test for the price elasticity of
deman
615.

Total Utility

616.

Trade-off

617.

Tradeoffs and free lunches

618.

Tragedy of Commons

619.

Tragedy of the commons

620.

Transactions costs

621.
The two main influences on the price
elasticity of supply are
622.

Tying arrangment

623.

Unit elastic demand

624.

The use of vouchers for education *

625.

Utility

626.

Vertical equity

627.
Vouchers represent a token amount
granted to producers to increase the quantity of
mixed goods purchased.
628.
We call the distribution of income among
the factors of production the?
629.

We make rational choices by comparing?

630.
We place the goods and services produced
into what four large groups?
631.
What are examples of inefficient
production?
632.
What are negative externalities, marginal
social costs, marginal social benefits, marginal
private costs, and marginal private benefits?
633.
What are the basic economic questions
that every society must answer?

634.
What are the effects of a change in
demand and a change in the quantity demanded?
635.
What are the effects of a change in supply
and a change in the quantity supplied?
636.
What are the effects of subsidies on
efficiency and fairness?
637.
What are the main influences on buying
plans that change demand?
638.
What are the main influences on selling
plans that change supply?
639.
What are the six ideas (CORE
CONCEPTS) that define the economic way of
thinking?
640.
What are the three basic economic
questions influence goods and services in the
global economy
641.
What causes a change in consumer and
producer surplus?
642.
What causes a change in the quantity
demanded?
643.
What causes a change in the quantity
supplied?
644.
What conditions affect the efficient
allocation of scarce resources?
645.
What conditions must be satisfied for an
allocation of productive resources to be efficient?
646.
What countries are considered Advanced
economies?
647.
What countries are considered Emerging
market economies?
648.

What do we produce?

649.
What economics call a giftgetting
something without giving up something else?
650.

What factors cause a change in demand?

651.

What factors cause a change in supply?

652.

What in the Global Economy?

653.
What is a fundamental feature of marginal
benefit?
654.

What is human capital?

655.
What is opportunity cost and how is it
calculated?
656.
What is the difference between Absolute
advantage and Comparative Advantage?
657.
What is the impact of a price ceiling on
efficiency and fairness?
658.
What is the impact of a price floor on
efficiency and fairness?
659.
What is the production possibilities frontier
(PPF)?
660.
When an economy is producing at a point
on its PPF ch
oose 2)
661.
When a price support is set below the
equilibrium price, producers ________ the quantity
supplied and consumers ________ the quantity
demanded.
662.

When demand changes:

663.
When drawing a production possibilities
frontier, which of the following is held constant?
664.
When firms choose the quantities of factor
services to hire, they respond to?
665.
When floods wiped out the banana crop in
Central America, the equilib-rium price of bananas
________ and the equilibrium quantity of bananas
________.
666.
When households choose the quantities of
services of land, labor, capital, and
entrepreneurship to offer in factor markets, they
respond to?
667.
When mixed goods are produced in
efficient quantity, marginal social benefits equal
marginal cost.
668.
When mixed goods are underproduced,
there is a deadweight loss because marginal social
benefits exceed marginal costs.
669.
true

670.
When one person (or nation) is more
productive than anotherneeds fewer inputs or
takes less time to produce a good or perform a
production task?
671.
When overproduction occurs in a
competitive market, efficiency can still be restored
by sticking with the working of the market.
672.

When supply changes:

673.
When the marginal benefits of public goods
differ between groups of voters, compromise is
required to get political approval.
674.
When the quantity demanded equals the
quantity suppliedbuyers' and sellers' plans are in
balance
675.
When there is a surplus, the price falls; and
when there is a shortage, the price rises?
676.

When US imposes an import quota

677.

When US imposes a tariff on import

678.

Where Is the Global Pie Baked?

679.
Which of the following best illustrates your
marginal benefit from studying?
680.
Which of the following classifications is
correct?
681.
Which of the following describes the
reason why scarcity exists?
682.
Which of the following events illustrates the
law of demand: Other things remaining the same, a
rise in the price of a good will ________ .
The law of demand is the inverse relationship
between the price of a good and the quantity
demanded.
683.
Which of the following increases the supply
of a product?
684.
Which of the following increases the supply
of gasoline?
685.
Which of the following influence the price
elasticity of demand? (Choose 2)
686.
Which of the following is a positive
statement?

687.
Which of the following is not a key idea in
the economic way of thinking?
688.
Which of the following items is not a factor
of production?
689.
Which of the following statements about
U.S. production is correct?
690.
Which of the following statements is
correct?
691.
Which of the following will change current
demand?
A. Expected future cost
B. Expected future price
C. Price of a substitute in production
D. Price of a complement in production
692.
Why is Financial Capital, like money,
stocks and bonds not Capital?
693.
The work time and work effort that people
devote to producing goods and services? It
includes the physical and mental efforts of all the
people who work on farms and construction sites
and in factories, shops, and offices.
694.

Zero Economic Profit