Podcast
Questions and Answers
A shift in equilibrium, where quantity increases but price remains constant, could be caused by which scenario?
A shift in equilibrium, where quantity increases but price remains constant, could be caused by which scenario?
- An input cost decreasing. (correct)
- Firms leaving the market.
- Firms entering the market.
- Buyers leaving the market.
- Buyers entering the market.
An economist uses real-world data and experiments to validate a theory. This approach exemplifies:
An economist uses real-world data and experiments to validate a theory. This approach exemplifies:
- Comparative advantage.
- The scientific method in economics. (correct)
- Macroeconomics.
- Economic growth.
- Normative analysis.
Which system fosters innovation by providing a strong financial incentive for creativity?
Which system fosters innovation by providing a strong financial incentive for creativity?
- Tax credit
- Direct incentive
- Patent (correct)
- Indirect incentive
- Trade-off
In economics, why are choices a fundamental necessity?
In economics, why are choices a fundamental necessity?
What is the name of the index of the average prices of all final goods and services in GDP?
What is the name of the index of the average prices of all final goods and services in GDP?
If real GDP increased by 2% and the inflation rate was 2%, what was the approximate growth in nominal GDP?
If real GDP increased by 2% and the inflation rate was 2%, what was the approximate growth in nominal GDP?
Which type of incentives are used to discourage actions and activities?
Which type of incentives are used to discourage actions and activities?
On a Production Possibilities Frontier (PPF), why might the opportunity cost of moving from one efficient point to another not be constant?
On a Production Possibilities Frontier (PPF), why might the opportunity cost of moving from one efficient point to another not be constant?
A country can produce either 200 bushels of wheat or 150 bushels of corn. What is the opportunity cost of producing one bushel of wheat?
A country can produce either 200 bushels of wheat or 150 bushels of corn. What is the opportunity cost of producing one bushel of wheat?
Which of the following statements is an example of a positive economic statement?
Which of the following statements is an example of a positive economic statement?
What does a point inside the Production Possibilities Frontier (PPF) represent?
What does a point inside the Production Possibilities Frontier (PPF) represent?
Suppose a country's nominal GDP increased by 5% while the price level rose by 2%. What is the approximate percentage change in real GDP?
Suppose a country's nominal GDP increased by 5% while the price level rose by 2%. What is the approximate percentage change in real GDP?
Which of the following is a shortcoming of using GDP as a measure of economic well-being?
Which of the following is a shortcoming of using GDP as a measure of economic well-being?
If the demand for coffee increases and the supply of coffee decreases, what will happen to the equilibrium price and quantity of coffee?
If the demand for coffee increases and the supply of coffee decreases, what will happen to the equilibrium price and quantity of coffee?
Suppose a consumer is deciding whether to buy one more slice of pizza. According to marginal thinking, the consumer should make this decision by comparing:
Suppose a consumer is deciding whether to buy one more slice of pizza. According to marginal thinking, the consumer should make this decision by comparing:
What will happen to the equilibrium price and quantity of a good if there is a technological improvement in its production and consumer incomes decrease (assuming the good is a normal good)?
What will happen to the equilibrium price and quantity of a good if there is a technological improvement in its production and consumer incomes decrease (assuming the good is a normal good)?
Which reason best explains why the increased use of coins may not stimulate economic growth?
Which reason best explains why the increased use of coins may not stimulate economic growth?
Which of the following statements is the best example of a positive statement?
Which of the following statements is the best example of a positive statement?
Based on the production possibilities frontier (PPF), what is DiNozzo’s opportunity cost of making a wooden boat?
Based on the production possibilities frontier (PPF), what is DiNozzo’s opportunity cost of making a wooden boat?
Based on the production possibilities frontier (PPF), what is Gibbs’s opportunity cost of making a wooden boat?
Based on the production possibilities frontier (PPF), what is Gibbs’s opportunity cost of making a wooden boat?
Using the provided GDP data, what is the GDP deflator in 2011?
Using the provided GDP data, what is the GDP deflator in 2011?
What was the nominal GDP in 2009, given that the real GDP was $500 million and the GDP deflator was 100?
What was the nominal GDP in 2009, given that the real GDP was $500 million and the GDP deflator was 100?
What was the real GDP in 2010, given that the nominal GDP was $551.2 million and the GDP deflator was 106?
What was the real GDP in 2010, given that the nominal GDP was $551.2 million and the GDP deflator was 106?
What was the nominal GDP in 2012, given that the real GDP was $600.6 million and the GDP deflator was 120?
What was the nominal GDP in 2012, given that the real GDP was $600.6 million and the GDP deflator was 120?
Using 2015 as the base year, what is the approximate inflation rate between 2015 and 2016 based on the provided data?
Using 2015 as the base year, what is the approximate inflation rate between 2015 and 2016 based on the provided data?
When the market price is above the equilibrium price, which of the following scenarios is most likely to occur?
When the market price is above the equilibrium price, which of the following scenarios is most likely to occur?
What does the term "ceteris paribus" signify in economic analysis?
What does the term "ceteris paribus" signify in economic analysis?
Isaac has job offers of $47,500, $46,000, $45,000, and $42,000. If he accepts the $47,500 job, what is his opportunity cost?
Isaac has job offers of $47,500, $46,000, $45,000, and $42,000. If he accepts the $47,500 job, what is his opportunity cost?
When demand decreases and supply increases, what is the likely effect on equilibrium price and quantity?
When demand decreases and supply increases, what is the likely effect on equilibrium price and quantity?
Between quarter 2 and quarter 3, by what percentage did real gross domestic product (GDP) grow? Round your answer to the nearest whole number.
Between quarter 2 and quarter 3, by what percentage did real gross domestic product (GDP) grow? Round your answer to the nearest whole number.
Bea excels at baking pastries, and Lucian is skilled at growing herbs. If they voluntarily trade cupcakes for parsley, what is the likely outcome?
Bea excels at baking pastries, and Lucian is skilled at growing herbs. If they voluntarily trade cupcakes for parsley, what is the likely outcome?
Which of the following conditions defines an imperfect market?
Which of the following conditions defines an imperfect market?
How would a significant increase in the price of sugar, an input for pastry production, most likely affect the market for pastries, assuming ceteris paribus?
How would a significant increase in the price of sugar, an input for pastry production, most likely affect the market for pastries, assuming ceteris paribus?
If Alexander doesn’t like changing the oil in his car and pays his father to do it for him, he has provided his father with a(n) ________ incentive.
If Alexander doesn’t like changing the oil in his car and pays his father to do it for him, he has provided his father with a(n) ________ incentive.
The government has been trying to mint dollar coins instead of printing paper dollar bills, but people have been reluctant to use coins instead of paper bills. How would an economist explain this reluctance?
The government has been trying to mint dollar coins instead of printing paper dollar bills, but people have been reluctant to use coins instead of paper bills. How would an economist explain this reluctance?
Assume the government imposes a price ceiling below the equilibrium price in the market for rental apartments. What is the most likely consequence of this policy?
Assume the government imposes a price ceiling below the equilibrium price in the market for rental apartments. What is the most likely consequence of this policy?
Which scenario best illustrates the concept of opportunity cost?
Which scenario best illustrates the concept of opportunity cost?
Consider a market where the demand curve is perfectly elastic. If supply decreases, what will happen to the equilibrium price and quantity?
Consider a market where the demand curve is perfectly elastic. If supply decreases, what will happen to the equilibrium price and quantity?
Suppose a city implements rent control, setting the maximum rent below the equilibrium rent. What is the most likely consequence in the housing market?
Suppose a city implements rent control, setting the maximum rent below the equilibrium rent. What is the most likely consequence in the housing market?
In a basic supply and demand model, what is the most likely impact of a decrease in the price of a complementary good on the equilibrium price and quantity of the primary good?
In a basic supply and demand model, what is the most likely impact of a decrease in the price of a complementary good on the equilibrium price and quantity of the primary good?
If the economy is operating at a point inside the Production Possibilities Frontier (PPF), this indicates:
If the economy is operating at a point inside the Production Possibilities Frontier (PPF), this indicates:
What are short-run fluctuations in economic activity that cause output to be above or below the long-run trend called?
What are short-run fluctuations in economic activity that cause output to be above or below the long-run trend called?
Which of the following best describes 'exogenous factors' in an economic model?
Which of the following best describes 'exogenous factors' in an economic model?
Real GDP increases over time when:
Real GDP increases over time when:
Suppose the market price is $10, and this corresponds to a point on a supply and demand graph where the quantity supplied is significantly higher than the quantity demanded. What condition exists in the market?
Suppose the market price is $10, and this corresponds to a point on a supply and demand graph where the quantity supplied is significantly higher than the quantity demanded. What condition exists in the market?
Firms expect that the price of their product will significantly increase in the near future. Holding all other factors constant, what is the most likely immediate impact on the supply curve and the equilibrium price of their product today?
Firms expect that the price of their product will significantly increase in the near future. Holding all other factors constant, what is the most likely immediate impact on the supply curve and the equilibrium price of their product today?
How would technological advancements that improve production efficiency be represented on a Production Possibilities Frontier (PPF)?
How would technological advancements that improve production efficiency be represented on a Production Possibilities Frontier (PPF)?
Flashcards
Real GDP
Real GDP
The total value of all goods and services produced in a country, adjusted for inflation.
Percentage Growth
Percentage Growth
The increase in GDP expressed as a percentage of the previous GDP.
Incentive Types
Incentive Types
Factors that motivate individuals to take action.
Direct Incentive
Direct Incentive
Signup and view all the flashcards
Indirect Incentive
Indirect Incentive
Signup and view all the flashcards
Long-Run Trend of Real GDP
Long-Run Trend of Real GDP
Signup and view all the flashcards
Reluctance to Use Dollar Coins
Reluctance to Use Dollar Coins
Signup and view all the flashcards
Economic Behavior
Economic Behavior
Signup and view all the flashcards
Opportunity Cost
Opportunity Cost
Signup and view all the flashcards
Production Possibilities Frontier (PPF)
Production Possibilities Frontier (PPF)
Signup and view all the flashcards
Shortcomings of GDP Data
Shortcomings of GDP Data
Signup and view all the flashcards
Supply and Demand Interactions
Supply and Demand Interactions
Signup and view all the flashcards
Marginal Thinking
Marginal Thinking
Signup and view all the flashcards
Positive Analysis vs Normative Analysis
Positive Analysis vs Normative Analysis
Signup and view all the flashcards
The Scientific Method in Economics
The Scientific Method in Economics
Signup and view all the flashcards
Scientific Method in Economics
Scientific Method in Economics
Signup and view all the flashcards
Incentives
Incentives
Signup and view all the flashcards
Nominal GDP
Nominal GDP
Signup and view all the flashcards
Inefficient Points
Inefficient Points
Signup and view all the flashcards
Attainable Points
Attainable Points
Signup and view all the flashcards
Dollar Coin Impact
Dollar Coin Impact
Signup and view all the flashcards
Carrying Coins Cost
Carrying Coins Cost
Signup and view all the flashcards
Use of Cards
Use of Cards
Signup and view all the flashcards
Retailer Costs
Retailer Costs
Signup and view all the flashcards
Positive Statement
Positive Statement
Signup and view all the flashcards
GDP Deflator
GDP Deflator
Signup and view all the flashcards
Nominal vs Real GDP
Nominal vs Real GDP
Signup and view all the flashcards
Business Cycles
Business Cycles
Signup and view all the flashcards
Exogenous Factors
Exogenous Factors
Signup and view all the flashcards
Real GDP Increase
Real GDP Increase
Signup and view all the flashcards
Equilibrium Price and Quantity
Equilibrium Price and Quantity
Signup and view all the flashcards
Substitute Good Impact
Substitute Good Impact
Signup and view all the flashcards
Firm's Supply Expectations
Firm's Supply Expectations
Signup and view all the flashcards
Unemployment on PPF
Unemployment on PPF
Signup and view all the flashcards
Inflation Rate
Inflation Rate
Signup and view all the flashcards
Equilibrium Price
Equilibrium Price
Signup and view all the flashcards
Surplus
Surplus
Signup and view all the flashcards
Ceteris Paribus
Ceteris Paribus
Signup and view all the flashcards
Voluntary Trade
Voluntary Trade
Signup and view all the flashcards
Imperfect Markets
Imperfect Markets
Signup and view all the flashcards
Market Pressure
Market Pressure
Signup and view all the flashcards
Study Notes
Multiple Choice Questions
-
Question 1: More oranges are grown in Florida than North Dakota due to Florida's warmer climate offering a comparative advantage.
-
Question 2: A change in price (P₁ to P₂) results in an increase in the quantity supplied (Q₂ to Q₁).
-
Question 3: A decrease in the price of cotton (an input for shirt production) will lead to a decrease in the equilibrium price and an increase in the equilibrium quantity of shirts.
Real GDP Data
-
Question 4: Between quarter 2 and quarter 3, real GDP grew by 3%.
-
Question 5: Real GDP grew by -2% between quarter 7 and 8.
-
Question 11: The GDP Deflator in 2011 was 112.0.
-
Question 12: The real GDP in 2010 was $551.2 billion.
Positive vs. Negative Statements
- Question 8: A positive statement is one that can be tested, such as "Winters in Arkansas are too cold."
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Related Documents
Description
Test your knowledge of economics with questions on comparative advantage, supply and demand, GDP changes, and differentiating between positive and negative statements. The quiz covers principles of economic indicators and market dynamics.
