An economic theory claims that a rise in gasoline prices will cause gasoline purchases to fall , ceteris parabus. The phrase ceterus parabus means?
Other relevant factors like consumer incomes must be held constant
An increase in the federal minimum wage will provide a living wage for the working poor is a ?
Statement of positive economics
Any point on the productions possibilities curve illustrates:
Maximum production combinations
As production of a good increases, opportunity cost rise because:
None of the above
A textbook is an example of a
Capital
Microeconomics approaches the study of economics from the viewpoint of
The individual or specific market
One of the assumptions underlying the production possibilities curve for any given economy is that:
There is full employment and no underemployment of resources when the economy is operating on the curve
Select the normative statement that completes the following sentence: if the minimum wage is raised
Workers will gain their rightful share of total income
The condition of scarcity:
Cannot be eliminated, prevails in poor and rich economies
The condition of scarcity can be eliminated if
People satisfy needs, find new resources, output of goods n services increase
The definition of a model is:
Simplified description of reality to understand and predict an economic event
The federal minimum wage causes higher unemployment among teenagers is a
Statement of positive economics
The government should provide health care for all citizens is
Normative economic analysis
The software programs that make computer hardware useful in production and management tasks are
Capital
The subject of economics is primarily the study of
Decision making because of the problem of scarcity
Which of the following is not a factor of production
Dollars
Which of the following is included in the study of macro economics
Unemployment in the nation
Which of the following is a positive statement ?
If taxes are raised, unemployment will drop
Which of the following does not illustrate opportunity cost?
More consumers spending now than in the future
Which of the following would most likely to cause the production possibility curve for computers and educations to shift?
An increase in the quantity of resources
Which of the following is true for law of demand?
There is an inverse relationship between the price of a good and the quantity of the good demanded
A demand curve for the steel porcupines concert tickets would show me:
Number of tickets that will be purchased at each price
Other things being equal, the effects of an increase in the price of computers would be best represented by which of the following
A movement up along the demand curve for compters
Which of the following best represents the effects of a decrease in the price of tomato juice, other things being equal
A downward movement along the demand curve for tomato juice
The Ceteris Paribus clause in the law of demand does not allow which of the following
Consumer tastes and preferences, price of other goods, expectations
Assume that Coca Cola and Pepsi cola are substitutes. A rise in the price of Coca Cola will have which of the following effects on the market for Pepsi?
A rightward shift in the Pepsi demand curve
Assume that crackers and soup are complementary goods. The effect on the soup marker of an increase in the price of crackers (other things being equal) would be best described as a
Decrease in the demand for doup
Assume that a computer is a normal good. An increase in consumer income, other things being equal would:
Decrease in the demand of the compter
Which of the following will increase the demand for large automobiles ?
An increase in buyers incomes
The theory of supply states
There is a positive relationship between the price of good and the quantity of it offered for sales by the supplier
Supply curves slope upward because
Rising prices provide producers with higher profit incentives needed to increase the quantity supplied
Which of the following will not cause a movement along the supply curve ?
All of the above, Changes in sellers expectations, increases in tax per unit, advances in technology
Assume that both oranges and peaches can be grown on the same type of land. A decrease in the price of peaches, other things being equal will cause:
Rightward shift of the supply curve for oranges
An advance in technology results in:
All of the above, suppliers offering larger quantity, same quantity lower price, rightward shift of supply curve, leftward shift
Assume the congress passes a new tax of 2.00$ per pack of cigarettes. The effect on the supply curve is :
Decrease in supply
Market equilibrium is defined as:
All of the above, condition in which neither shortage or surplus, separately formulated plans of buyers and sellers exactly mesh when tested, graphically by intersection of supply and demand
Suppose the government imposed rent control price ceiling below the equilibrium price for rental housing. Which of the following results?
All of above, black markets, quality of existing deteriorates, shortage
If the equilibrium price of a good X is $5 and the price ceiling is imposed at $4, the eventual result will be:
Shortage
Which of the following is an example of market failure?
All of above, public good, externalities, lack of competition
A good that provides external benefits to society has
Too few resources devoted to its production