56% of inflation is calledJumping
A binding price ceiling in the computer market will causea shortage of computers.
A binding price ceiling is imposed on the market for peaches. At the ceiling price,the quantity demanded of peaches will be greater than the quantity supplied
A binding price ceiling will make it necessary to develop a way of rationing the product, because there will be a shortage
A consumer’s willingness to pay measureshow much a buyer values a good.
A country’s consumption possibilities frontier can be outside its production possibilities frontierwith trade
A legal maximum price at which a good can be sold is aprice ceiling
A legal minimum price at which a good can be sold is a price floor
A market is a group of demanders and suppliers of a particular good or service.
A price ceiling which is not bindinghas no effect
A rancher can produce only hamburgers, and a farmer can produce only french fries. The rancher and the farmer both like both foods. They could gain from trade because each would enjoy a greater variety of food.
A tax levied on the buyers of a product shifts the demand curve downward or to the left.
A tax levied on the supplier of a product shifts the supply curve upward or to the left.
A tax on a goodraises the price buyers pay and lowers the price sellers receive.
A tax placed on a good causes the size of the market for the good to shrink
An example of pure public good would be national defence
An example of restriction would becard system
As the size of a tax increases the deadweight loss from the tax increases
Branding is most widely spread for diversified goods
Daniel decides to spend an hour playing basketball rather than working at $6 per hour. His tradeoff is the $6 he could have earned.
Deadweight loss isthe reduction in total surplus that results from a tax.
Economic analysis uses which of the following to judge the effect of taxes on economic welfare? consumer and producer surplus
Economics deals primarily with the concept of scarcity.
Economics is defined as the study of how society manages its scarce resources
Economics was born in Ancient Greece
Efficiency means thatsociety is getting the most it can from its scarce resources
Firms that sell their products in a competitive market have limited pricing power because other sellers are offering very similar products
For society, a good is not scarce if all members of society can have all they want of it.
General conclusion of Keynes states that State should interfere into economy
GNP is Gross National Product
Human need – isa shortage of something necessary that becomes aware for a man
If a consumer is willing and able to pay $15.50 for a particular good but the price of the good is $16.00, then the consumer would not purchase the good and would not have any consumer surplus.
If a consumer is willing and able to pay $200 for a particular good but only has to pay $140,the consumer surplus is $60.
If a country with low potential begins to grow fast this is called Catch-up effect
If a price ceiling is a binding constraint on the market the equilibrium price must be above the price ceiling.
If a price ceiling is not binding,the equilibrium price is below the ceiling.
If a seller in a competitive market chooses to charge more than the market price, thenbuyers will tend to make their purchases elsewhere.
If labor in Mexico is less productive than labor in the U.S. in all areas of production,both nations can benefit from trade.
If number of consumers increases the demand will increase
If number of producers increases the supply willdecrease
If quantity demanded changes by a larger percentage than does price demand is said to beelastic
In a free market, who determines how much of a good will be sold and the price at which it is sold?both suppliers and demanders
International trade does not occur ifvalue decreases and transportation cost rises
Japanese economy is mostly based on human capital
K.Marx was mostly against capitalism
Natural environment combines manpower and natural resources
Natural monopolies are based on economies of scale
Normative analysis refers to what should be.
Oligopoly usually bears non-price competition as price behavior is constrained wit interdependence
Point where demand crosses supply is called equilibrium
Positive analysis refers towhat is.
Price controls are usually enacted when policymakers believe that the market price of a good or service is unfair to buyers or sellers
Price controlscan generate inequities of their own.
Products can be consumer and industrial
Property processes which take place in Baltic countries after break-up of the Soviet Union are called denationalization
Real GDP is an actual volume of … counted in prices of the … production, base year
Retail trade market would be mostly characterized as monopolistic competition
Returning privatized property back as a result of governmental purchase is calledreprivatization
Scarcity exists whenthere is less of a good or resource available than people wish to have
Sharon values a lawnmower at $300, but buys it for $200. Sharon’s willingness to pay$300.
Suppose that John, Paul, George, and Ringo are bidding in an auction for a mint-condition recording of Elvis Presley’s first album. Each has in mind a maximum amount that he will bid. This maximum is called willingness to pay.
Taxes on labor encourage all of the following EXCEPT workers to work overtime.
The adage, “There is no such thing as a free lunch,” means: To get something we like, we usually have to give up another thing we like.
The amount of deadweight loss from taxes depends on the price elasticity of demand and supply.
The benefit received by buyers in a market is measured by consumer surplus.
The benefit received by the government from a tax is measured by tax revenue.
The benefit received by the sellers of a good in a market is measured byproducer surplus
The degree of quantitative change in demand when price changes is shown byprice elasticity of demand
The equilibrium of supply and demand in a marketmaximizes the total benefits received by buyers and sellers.
The greater the elasticities of demand and supplythe greater the deadweight loss from a tax..
The highest market concentration is observed in monopoly
The loss in total surplus (economic welfare) resulting from a tax is calleddeadweight loss.
The market equilibrium tends to stabilize if fluctuationsbecome smaller
The particular price that results in quantity supplied being equal to quantity demanded is the best price because it maximizes the total welfare of buyers and sellers
The person is considered employed if He/she is not working because of bad weather (too cold outside)
The resources are not interchangeable, and, thus, opportunity cost rises
The speed of economic growth can be better expressed in terms of average rate of GDP growth or average rate of GDP per capita growthAverage rate of GDP per capita growth
The study of how the allocation of resources affects economic well-being is calledwelfare economics.
The third level of needs according to Maslow combinessociological needs
The word economy comes from the Greek word for “one who manages a household.”
Transition of knowledge into labor skills reflects the concept of Human capital
Unemployment decreases in Growth and recovery phases
Welfare economics is the study of how the allocation of resources affects economic well-being.
What will be example of movement from non-labor force to employe student graduated and found job
When a tax is levied on a good both buyers and sellers are economically worse off.
When a tax is levied on a good both price and quantity of the good sold will change.
When a tax is levied on the sellers of a good he supply curve shifts left (up) by an amount equal to the tax
When a tax on a good is enacted buyers and sellers share the burden of the tax regardless of which it is levied on.
When volume of production cannot be sold Production decreases
Which continents suffer most from inflation? Africa and Latin America
Which of the following actions of “economic growth” policy would stimulate effective distribution of production between countriesStimulating free trade
Which of the following are the words most commonly used by economists?supply and demand
Which of the following generally is not included in government actions against unemployment Force people to save
Which of the following is a function of competition?force innovation
Which of the following is an economic consequence of unemployment GDP decrease
Which of the following is not a characteristic of monopoly? None of answers is correct
Which of the following is not a function of competition? governing small companies
Which of the following is NOT a major area of study for economists? how countries choose national leaders
Which of the following is not a market function sourcing
Which of the following is not a type of unemployment?Critical
Which of the following is not an economic consequence of unemployment Social unrest
Which of the following is not an example of entry barrierfree trade
Which of the following is not included in GDP welfare of free time in general
Which of the following is NOT included in the decisions that every society must make?what determines consumer preferences
Which of the following is not true for perfectly competitive market product is diversified or homogeneous
Which of the following resources has natural scarcity land
Which of the following will not cause aggregate demand to increase decrease in income of consumers
Which of the following would not be an example of third level price discriminatio decreased price for rotten fruits
Which science studies general principles of behavior of households and firms Economics
Which years are known as Great Depression1929-1933
Who created the term “economics”Xenophontes
Who is it that ultimately determines the demand for a product or service?those who buy the product or servicethe A competitive market is a market in which there are many buyers and many sellers so that each has a negligible impact on price.
Who of the following is a subject of structural unemployment A person who lost his job
Who of the following was not an economist All answers are correct
Who of the following was not an economist Mesrop Mashtoc, creator of Armenian alpahbet
Who of the following will not be included in labor force Prisoners
Who was the first to discover dependency between inflation and unemployment Philips
Willingness to pay measures the maximum amount that a buyer will pay for a good.