Podcast
Questions and Answers
What is the assumption made when creating demand curves?
What is the assumption made when creating demand curves?
- Inflation always causes product prices to rise
- All economic factors remain constant except price (correct)
- Consumer taste is the most important variable
- Availability of product is the most important variable
What is the substitution effect in economics?
What is the substitution effect in economics?
- The change in the amount consumers will buy because they can buy a different product instead (correct)
- The change in the amount consumers will buy due to a change in the price of a substitute
- The change in the amount consumers will buy due to a change in income
- The change in the amount consumers will buy due to a change in consumer taste
What determines the shape of a demand curve?
What determines the shape of a demand curve?
- Consumer expectation
- The law of diminishing marginal utility (correct)
- The income effect
- The formula to calculate total revenue
What factor is affecting demand when a factory closes and consumer spending in the town falls?
What factor is affecting demand when a factory closes and consumer spending in the town falls?
What do various points on a demand curve represent?
What do various points on a demand curve represent?
What type of goods do consumers demand less of when their incomes rise?
What type of goods do consumers demand less of when their incomes rise?
What is the primary factor that affects demand according to the scenario where a factory in town gives its employees bonuses, and mall purchases increase?
What is the primary factor that affects demand according to the scenario where a factory in town gives its employees bonuses, and mall purchases increase?
What economic concept measures how responsive consumers are to price changes?
What economic concept measures how responsive consumers are to price changes?
What should the owner do to visually show the overall pattern of information?
What should the owner do to visually show the overall pattern of information?
When demand is inelastic, how does the quantity demanded respond to a price change?
When demand is inelastic, how does the quantity demanded respond to a price change?
What is the term for the change in total output that results from hiring one additional worker?
What is the term for the change in total output that results from hiring one additional worker?
What does a steep slope on a demand curve indicate?
What does a steep slope on a demand curve indicate?
What does a marginal product schedule show?
What does a marginal product schedule show?
Why is the demand for gasoline inelastic?
Why is the demand for gasoline inelastic?
What is the term for the additional expense of producing one more unit of a product?
What is the term for the additional expense of producing one more unit of a product?
What does a demand curve look like when demand is unit elastic?
What does a demand curve look like when demand is unit elastic?
Which type of industry tends to take a great deal of time to shift the resources of production to respond to price changes?
Which type of industry tends to take a great deal of time to shift the resources of production to respond to price changes?
What increases the elasticity of supply for most goods and services?
What increases the elasticity of supply for most goods and services?
Under which condition is supply said to be inelastic?
Under which condition is supply said to be inelastic?
What determines how elastic a supply is?
What determines how elastic a supply is?
What is the likely outcome when Manju opens a successful Indian restaurant in her city?
What is the likely outcome when Manju opens a successful Indian restaurant in her city?
What is the carmaker most likely to do in response to the foreign country's tax on rubber exports?
What is the carmaker most likely to do in response to the foreign country's tax on rubber exports?
What is the effect of Manju's success on the number of producers in the restaurant business?
What is the effect of Manju's success on the number of producers in the restaurant business?
What is the likely effect of the foreign country's tax on rubber exports on the carmaker's business?
What is the likely effect of the foreign country's tax on rubber exports on the carmaker's business?
What is the main goal of achieving efficiency in production?
What is the main goal of achieving efficiency in production?
What is the difference between microeconomics and macroeconomics?
What is the difference between microeconomics and macroeconomics?
What is the formula for calculating interest earned in the first year?
What is the formula for calculating interest earned in the first year?
What is the law of increasing opportunity costs?
What is the law of increasing opportunity costs?
What is an economic model?
What is an economic model?
What is the definition of marginal benefit?
What is the definition of marginal benefit?
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