Economics Exam 1 - Fall 2022 Study Notes

<p>Quantity demanded equals quantity supplied. (D)</p> Signup and view all the answers

<p>All time spent on the doodle would not be productive. (A)</p> Signup and view all the answers

<p>Triangle AEG. (C)</p> Signup and view all the answers

<p>They prioritize salary over safety. (A)</p> Signup and view all the answers

<p>100 books. (B)</p> Signup and view all the answers

<p>$1,000 (B)</p> Signup and view all the answers

<p>It is not influenced by geopolitical factors. (B)</p> Signup and view all the answers

<p>Prosperity among nations involved in trade. (B)</p> Signup and view all the answers

<p>Goods that involve a lower opportunity cost. (A)</p> Signup and view all the answers

<p>$3,612.50 (D)</p> Signup and view all the answers

<p>It falls due to decreased incomes and oil being a normal good. (C)</p> Signup and view all the answers

<p>It results in a movement upward and to the right. (C)</p> Signup and view all the answers

<p>4 greeting cards and 6 greeting cards respectively. (B)</p> Signup and view all the answers

<p>They are above the equilibrium price. (A)</p> Signup and view all the answers

<p>Prices rise. (C)</p> Signup and view all the answers

<p>A temporary shortage. (C)</p> Signup and view all the answers

<p>There is a positive relationship. (A)</p> Signup and view all the answers

<p>Decrease as regulations act like a tax. (D)</p> Signup and view all the answers

<p>Workers focus on specific tasks, becoming more efficient. (C)</p> Signup and view all the answers

<p>Higher wealth levels are linked to improved health outcomes. (C)</p> Signup and view all the answers

<p>The lower the price, the greater the quantity demanded. (D)</p> Signup and view all the answers

When income increases, the demand for a normal good also increases.

The revenue producers earn from selling goods, minus the cost of producing them.

Oil's value varies depending on its use, therefore higher prices lead to lower demand in some uses, and vice-versa.

The point where the quantity demanded equals the quantity supplied, there is no shortage or surplus.

The value of the next best alternative forgone when making a decision (the doodle distracted from work).

The difference between the amount consumers are willing to pay and the amount they actually pay at equilibrium.

People accept potentially dangerous jobs if the compensation is sufficient, balancing risk with reward.

At a price of $45, the maximum number of books buyers are willing to buy is 100 (according to the provided graph).

The total benefit that arises from engaging in trade, calculated at the equilibrium price.

An increase in the amount of digital cameras available for sale.

The ability of an individual or group to carry out a particular economic activity (or produce a particular good or service) more efficiently than others.

A small incremental adjustment to an existing plan of action.

The difference between the maximum price a consumer is willing to pay and the actual market price.

Specialization in producing goods and services and trading them with others.

During a recession, oil prices tend to fall due to lower demand.

The potential benefits an individual, investor, or business misses out on when choosing one alternative over another.

When there are not enough goods or services available to meet the demand at the current price, a shortage occurs. This usually leads to an increase in price.

In a market, equilibrium is achieved when the quantity demanded equals the quantity supplied. At this point, there is no shortage or surplus.

The law of supply states that as the price of a good or service increases, the quantity supplied also increases. There is a positive relationship between price and quantity supplied.

The invisible hand is a term used by Adam Smith to describe how individuals pursuing their own self-interest can unintentionally benefit society as a whole.

Incentives can be monetary (money) or non-monetary (like recognition or power). Economists believe that people respond to incentives to make decisions.