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Questions and Answers
Allocating dorm rooms is:
Allocating dorm rooms is:
an economic problem
If supply and demand both shift to the right, equilibrium quantity:
If supply and demand both shift to the right, equilibrium quantity:
rises, but the equilibrium price may rise, fall, or stay the same
What idea from Chapter 1 does the illegal cockfighting in New Jersey illustrate?
What idea from Chapter 1 does the illegal cockfighting in New Jersey illustrate?
Social and political forces sometimes rein in market forces
When applied to labor markets, the law of supply suggests that:
When applied to labor markets, the law of supply suggests that:
The use of the phrase 'other things constant' in supply and demand analysis indicates that:
The use of the phrase 'other things constant' in supply and demand analysis indicates that:
What could cause the price of tomatoes to dramatically increase?
What could cause the price of tomatoes to dramatically increase?
Laissez-faire is an economic:
Laissez-faire is an economic:
The distinction between supply and the quantity supplied is best made by saying that:
The distinction between supply and the quantity supplied is best made by saying that:
Charging for use of a road is shifting from:
Charging for use of a road is shifting from:
What is Mary’s marginal cost per minute of making two more calls lasting 10 minutes each?
What is Mary’s marginal cost per minute of making two more calls lasting 10 minutes each?
The minimum wage is an example of a price floor.
The minimum wage is an example of a price floor.
Entrepreneurship is defined as the ability to:
Entrepreneurship is defined as the ability to:
The explanation for the law of demand involves:
The explanation for the law of demand involves:
What does any economic system provide?
What does any economic system provide?
The effect of higher gasoline prices is most likely to:
The effect of higher gasoline prices is most likely to:
Which of the following is not an economic institution?
Which of the following is not an economic institution?
What are the equilibrium price and quantity of wheat given (Qd = 1750-130 P) and (Qs = 1000+170 P)?
What are the equilibrium price and quantity of wheat given (Qd = 1750-130 P) and (Qs = 1000+170 P)?
A defining difference in what makes a firm a sole proprietorship, partnerships, or a corporation is the:
A defining difference in what makes a firm a sole proprietorship, partnerships, or a corporation is the:
The distinction between demand and the quantity demanded is made by saying that:
The distinction between demand and the quantity demanded is made by saying that:
Why was the Industrial Revolution important to the history of economic systems?
Why was the Industrial Revolution important to the history of economic systems?
Trade sanctions imposed on Iraq that limited Iraq's production of oil after the 1990 Gulf War are best shown graphically with a price ceiling below equilibrium price.
Trade sanctions imposed on Iraq that limited Iraq's production of oil after the 1990 Gulf War are best shown graphically with a price ceiling below equilibrium price.
Describe the events of world petroleum demand in the 1990s.
Describe the events of world petroleum demand in the 1990s.
If Chuck is following the economic decision rule, the marginal benefit of the house to:
If Chuck is following the economic decision rule, the marginal benefit of the house to:
A basic difference between microeconomics and macroeconomics is that microeconomics examines the choices made by individual participants in an economy and macro considers the economy's overall performance.
A basic difference between microeconomics and macroeconomics is that microeconomics examines the choices made by individual participants in an economy and macro considers the economy's overall performance.
Which of the following would cause quantity demanded to change without changing the demand curve?
Which of the following would cause quantity demanded to change without changing the demand curve?
From a purely economic perspective, the death penalty for computer hackers is:
From a purely economic perspective, the death penalty for computer hackers is:
What does it suggest when price cuts cause consumers to wait for deeper discounts?
What does it suggest when price cuts cause consumers to wait for deeper discounts?
Given the production capabilities in Colombia and Brazil, which of the following statements is true?
Given the production capabilities in Colombia and Brazil, which of the following statements is true?
The supply of leather jackets would be expected to increase as a result of:
The supply of leather jackets would be expected to increase as a result of:
A socialist economy in theory expects people to be:
A socialist economy in theory expects people to be:
Alexandra should study for the quiz as long as her hourly wage rate is:
Alexandra should study for the quiz as long as her hourly wage rate is:
The difference between an L3C and other types of businesses is that:
The difference between an L3C and other types of businesses is that:
Say a pill existed that made people selfless. Under the coordination definition of economics:
Say a pill existed that made people selfless. Under the coordination definition of economics:
An increase in price and decrease in quantity are consistent with a:
An increase in price and decrease in quantity are consistent with a:
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Study Notes
Economic Problems and Concepts
- Allocating dorm rooms presents an economic problem due to non-market-based allocation.
- Equilibrium quantity rises when both supply and demand shift right, while equilibrium price can fluctuate.
- Social and political forces can restrict market forces, exemplified by illegal cockfighting in New Jersey.
Supply and Demand Dynamics
- In labor markets, higher wages for nurses result in an increase in the quantity of nurses supplied.
- "Other things constant" in supply and demand indicates equilibrium quantity has been achieved.
- Natural disasters, like hurricanes, can shift supply left, leading to price increases, such as seen with tomatoes.
Economic Theories and Models
- Laissez-faire represents an economic precept based on normative judgments relevant to the real world.
- The relationship between supply and quantity supplied is distinguished; supply is a curve, while quantity supplied is a point on that curve.
Pricing and Consumer Behavior
- Electronic Road Pricing in Singapore exemplifies moving from third-party payment to direct consumer costs to manage demand.
- Marginal cost for Mary, regarding phone calls exceeding her plan, is zero for calls within her free limit.
Economic Systems and Institutions
- The minimum wage is not classified as a price floor; it is instead a direct wage intervention.
- Any economic system aims to meet the goods and services desired by society.
Market Reactions and Shifts
- Higher gasoline prices typically drive demand for hybrid cars while decreasing demand for high-consumption vehicles.
- The total demand equation for wheat indicates the equilibrium price and quantity can be calculated as $2.50/ton and 1,425 thousand tons, respectively.
Business Structures and Economics
- The distinguishing factor between business types (sole proprietorship, partnership, corporation) is ownership and accountability.
- Demand versus quantity demanded: Demand is a curve while quantity demanded is a point on that curve.
Historical Economic Developments
- The Industrial Revolution led to a significant power shift towards capitalists and established capitalism as a dominant force in economic systems.
Trade and Economic Relationships
- Price ceilings below equilibrium price do not accurately represent trade sanctions, as indicated in Iraq post-1990 Gulf War.
- Rapid global demand for petroleum increased in the 1990s, influenced by OPEC’s inability to control output.
Economic Decision-Making
- Chuck’s behavior towards a house offer reflects that his marginal benefit from the house is less than the seller's asking price.
- Microeconomics studies individual economic choices, whereas macroeconomics evaluates overall economic performance.
Demand Curve Insights
- Changes to quantity demanded occur based solely on price changes, not shifts in the demand curve itself.
- Price cuts may lead to consumer expectations that can shift the demand curve left, as consumers wait for better discounts.
Trade and Comparative Advantage
- Colombia demonstrates an opportunity for trade; however, the response indicates D: no gains from trade under the provided circumstances.
Market Supply Changes
- A decrease in production costs typically increases supply, such as with leather jackets.
Economic Ideals and Practicality
- A socialist economy theoretically relies on altruism from its citizens to operate effectively.
- Alexandra's decision to study over working hinges on a comparison of benefits measured against her opportunity costs.
Special Business Models
- An L3C distinguishes itself by prioritizing social missions alongside profit objectives.
Economic Behavior and Self-interest
- The coordination definition of economics suggests that even with selfless behavior, economic problems persist.
- An increase in price along with a decrease in quantity typically indicates a leftward shift in supply, showcasing supply-demand interactions.
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