ECON TESTS
Terms
undefined, object
copy deck
- cartel
- Firms that coordinate their actions to maximize joint profits are said to have formed a(n)
- normal good
- You graduate and get a high paying job. As a result of your increase in income, you buy more fresh salmon. For you, salmon must be a(n)
- TRUE
- WHEN THE ENTIRE DEMAND SHIFTS OUT TO THE RIGHT, ECONOMISTS SAY THERE HAS BEEN AN INCREASE IN DEMAND.
- decentralized
- In the market economy, decision making is
- below potential GDP
- From the point of view of economics, discrimination results in an actual GDP that is
- TRUE
- THE POVERTY PROBLEM WITHIN THE US MOST RELATIVE POVERTY, RATHER THAN ABSOLUTE POVERTY.
- technology
- A know-how and the means and methods of production available within an economy are known as
- monopsony
- A market with only one buyer or employer is called a(n)
- centralized planning
- In a pure command economy, resources use decisions are made through
- TRUE
- IN A PURE COMMAND ECONOMY, RESOURCES ARE OWNED AND/OR CONTROLLED BY THE STATE (GOVERNMENT)
- positive externalities in consumption
- Consumption of education is said to create which of the following?
- markets
- In a pure market economy, coordination of resource-use decisions is made through
- FALSE
- WITHOUT PUBLIC SCHOOLS, THERE WOULD BE NO K-12 EDUCATION.
- price ceiling
- A maximum allowable price for a good or service is a
- TRUE
- RELATIVE POVERTY WILL ALWAYS EXIST IN A MARKET-BASED ECONOMY.
- employee
- An example of a capital resource out of: employee, machinery, agricultural land, factory, and mineral deposit.
- income effect
- Which of the following creates incentives for poor workers to reduce their hours of work when they receive cash welfare assistance?
- TRUE
- THE SHORTAGE OF TEAMS IN PROFESSIONAL SPORTS IS A PRIMARY REASON THAT TEAMS OFTEN RELOCATE TO NEW CITIES
- all of the above
- Which of the following factors often contribute to wage differentials in our economy? 1) workers exhibit different degrees of experience and skill, 2) some workers are more productive than others, 3) the level of demand varies across markets for different products, 4) prices of different products vary tremendously in a market economy, 5) all of the above.
- incentives to work may be reduced
- One of the unintended consequences of paying Government subsidies to the poor is that
- Law of Demand
- Suggests that the lower the price of a good, the larger will be the quantity demanded, other things being equal
- TRUE
- A RESULT OF EMPLOYMENT DISCRIMINATION MAY BE THAT SOME QUALIFIED PEOPLE ARE NOT HIRED BECAUSE OF NON-ECONOMIC CONSIDERATION SUCH AS RACE AND SEX.
- total revenue and total cost
- Profits represent the difference between
- TRUE
- ECONOMIC FORCES UNLEASHED BY INCREASED COMPETITION IN K-12 EDUCATION CAN LEAD TO AN IMPROVED EDUCATION SYSTEM.
- TRUE
- THE MOVE FROM ILLITERACY TO LITERACY HAS HIGH MARGINAL BENEFITS.
- FALSE
- BARRIERS OF ENTRY ARE ENTICEMENTS TO THE ENTRY OF NEW FIRMS INTO A MARKET.
- gross domestic product
- Which of the following measurs the market value of all final goods and services produced within an economy during a specific time period?
- maximizes social well-being
- When there are no externalities, equilibrium in a market
- decline
- The Law of Diminishing Returns says an additional units of a variable input are added to a given amount of a fixed input, increases in output eventually will
- substitute goods
- If an increase in the price of Cheeze-its leads to an increase in the demand for Doritos. Cheez-its and Doritos must be
- lower; higher
- In a product market with a cartel, output will be ______ and prices will be ______ than in a competitive market.
- Marginal Social Benefit = Marginal Social Cost
- To be socially optimal, education should be provided to the point where
- inferior good
- A few months later, you get a layoff notice. As a result of your lower income, you buy more peanut butter. For you, peanut butter must be a(n)
- all of the above
- Government has attempted to alleviate poverty through 1) income support programs, 2) health care 3) food and nutrition assistance 4) housing assistance 5) all of the above.
- baseball players generate more revenue for their employers
- The average baseball player earns a salary greater than the average college professor because
- monopoly power
- Concentration ratio is used to measure
- minimum wage
- The following is an example of a price floor
- FALSE
- LABOR RESOURCES CONSIST ONLY OF THE EFFORTS OF UNION MEMBERS AVAILABLE FOR USE IN PRODUCTION PURPOSES.
- TRUE
- THE MARGINAL BENEFIT OF EDUCATION DECREASES AS A STUDENT COMPLETES MORE YEARS OF EDUCATION.
- optimal level
- Occurs when MSB of control just equals MSC.
- FALSE
- THE INSTITUTION OF PRIVATE PROPERTY RIGHTS IS A RARE AND UNNECESSARY FEATURE OF PURE MARKET ECONOMICS
- FALSE
- TICKETS AND BROADCAST RIGHTS TO FOOTBALL GAMES BROUGHT AND SOLD IN THE RESOURCE MARKET
- The number of years of education demanded increases
- In a private education market, which of the following happens as educational tuition decreases?
- TRUE
- EFFICIENCY IN PRODUCTION OR FULL EMPLOYMENT OF RESOURCES IS IMPLIED WHEN AN ECONOMY'S OUTPUT LIES ON ITS PRODUCTION POSSIBILITIES CURVE.
- scarcity
- In economics, the basic problem is
- externality in consumption
- When a change in satisfaction (either positive or negative) happens for someone other than the direct consumer of an item, which of the following exists?
- FALSE
- PROFESSIONAL SPORTS LEAGUES, LIKE THE NFL AND OTHERS, WERE FORMED BY TEAMS IN AN EFFORT TO STIMULATE MORE INTENSE ECONOMIC COMPETITION BETWEEN THE TEAMS.
- cost-benefit analysis
- Suggests that an activity should be expanded so long as the expansion leads to greater benefit than costs.
- FALSE
- PER CAPITA REAL GDP IS SIMPLY REAL GDP DIVIDED BY THE NUMBER OF DOLLARS IN CIRCULATION.