Podcast
Questions and Answers
What is the term used to represent the price-quantity pair at which both buyers and sellers are satisfied?
What is the term used to represent the price-quantity pair at which both buyers and sellers are satisfied?
- P*Q
- P&Q
- Q&P
- Q*P* (correct)
In a perfectly competitive market, what happens if the price-quantity pair is not at equilibrium (QP)?
In a perfectly competitive market, what happens if the price-quantity pair is not at equilibrium (QP)?
- Both buyers and sellers are less satisfied (correct)
- Buyers are always satisfied
- Both buyers and sellers are equally satisfied
- Sellers are always satisfied
What does the equilibrium of supply and demand in a market economy maximize?
What does the equilibrium of supply and demand in a market economy maximize?
- Transaction costs
- Government intervention
- Consumer surplus (correct)
- Producer surplus
Combining supply and demand curves allows us to describe what in an economy?
Combining supply and demand curves allows us to describe what in an economy?
In a competitive market, what happens if the price-quantity pair is not at the equilibrium point?
In a competitive market, what happens if the price-quantity pair is not at the equilibrium point?
What determines the elasticity of a commodity’s demand function?
What determines the elasticity of a commodity’s demand function?
How is the short run defined in terms of price adjustments?
How is the short run defined in terms of price adjustments?
When is demand considered to be elastic?
When is demand considered to be elastic?
What characterizes a perfectly inelastic demand curve?
What characterizes a perfectly inelastic demand curve?
How do long-run elasticities typically compare to short-run elasticities?
How do long-run elasticities typically compare to short-run elasticities?
What defines unitary elastic demand?
What defines unitary elastic demand?
What is defined as economic growth?
What is defined as economic growth?
Which of the following is considered a potential source of economic growth?
Which of the following is considered a potential source of economic growth?
Why is growth considered important according to the text?
Why is growth considered important according to the text?
What does the theory of convergence suggest should happen?
What does the theory of convergence suggest should happen?
What is the expected result of the 'trickle down' effect within countries?
What is the expected result of the 'trickle down' effect within countries?
Why do people tend to be happier with higher levels of income according to the text?
Why do people tend to be happier with higher levels of income according to the text?
What is the main characteristic of market goods?
What is the main characteristic of market goods?
How can the free-rider problem be defined?
How can the free-rider problem be defined?
What is an example of a negative externality mentioned in the text?
What is an example of a negative externality mentioned in the text?
How can the problem of externalities be addressed in economics?
How can the problem of externalities be addressed in economics?
What was the main issue with the temporary switch to the Flint River mentioned in the text?
What was the main issue with the temporary switch to the Flint River mentioned in the text?
Why are market goods often best left to the market to allocate?
Why are market goods often best left to the market to allocate?
What may happen if badly-designed regulations are in place according to the text?
What may happen if badly-designed regulations are in place according to the text?
How might voter concerns influence government actions based on the text?
How might voter concerns influence government actions based on the text?
Under what circumstances might certain economic agents lobby in favor of intervention?
Under what circumstances might certain economic agents lobby in favor of intervention?
What governmental approach relies on standards and quotas for regulation?
What governmental approach relies on standards and quotas for regulation?
What is a characteristic of a wise government intervention according to the text?
What is a characteristic of a wise government intervention according to the text?
How can a less far-sighted government still be prompted to act according to the text?
How can a less far-sighted government still be prompted to act according to the text?
