Eng 200 Midterm 1
Terms
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- Given a downsloping demand curve and an upsloping supply curve for a product, an increase in the price of a substitute good will
- Increase equilibrium price and quantity
- well-defined property rights
- encourage owners to maintain or improve their property
- import quotas are
- maximum limits on the quantity or total value of specific products imported to a nation
- the building of a production plant in china by an american firm best illustrates
- resource flow
- the term ceteris paribus means
- other things equal
- In deciding whether to study for an economics quiz or go to a movie, one is confronted by the idea of
- scarcity and opportunity costs
- If there is a shortage of product :
- The price of the product will rise
- If a competitive industry is neither expanding nor cocntracting, we would expect
- economic profits to be zero
- The four factors of production are:
- land, labor, capital, and entrepreneurial ability
- an economist for a bicycle company predicts that, other things equal, a rise in consumer incomes will increase the demand for bicycles. this prediction is based on the assumption that
- bicycles are normal goods
- If the dollar price of one yen $.04 a japanese good priced at 560 yen would cost an american
- $22.40
- a perfectly inelastic demand curve
- graphs as a line parallel to the vertical axis
- If the price elasticity of demand for gasoline is .20
- a 10 percent rise in the price of gasoline will decrease the amount purchased by 2 percent
- in presenting the idea of a demand curve economists presume that the most important variable in determining the quantity demanded is
- the price of the product itself
- The price of product x is reduced from 100 to 90 and, as a result, the quantity demanded increases from 50 to 60 units. therefore demand for x in this price range
- is elastic
- All else equal, depreciation of the mexican peso relative to the USD would make a trip by
- an american to meico less expensive
- We would expect the cross elasticity of demand between pepsi and coke to be
- positive, indicating substitute goods
- Because of unseasonably cold weather, the supply of oranges has substantially decreased. This statement indicates that
- the amount of oranges that will be available at various prices has declined
- any point inside the production possibilities curve indicates
- that more output could be produced with available resources
- the physical inmport of dvd players to the united states from japan best illustrates a
- trade flow
- The study of economics is primarily concerned with
- choices that are made in seeking the best use of resources
- nontariff barriers are
- licensing requirements, unreasnable quality standards, and the like desined to impede imports
- The main determinant of elasticity of supply is the
- amount of time the producer has to adjust inputs in response to a price change
- Consumer soverignty refers to the
- idea that the decisions of producers and resource suppliers with respect to the kinds and amounts of goods produced must be appropriate to consumer demands
- from socity's point of view the economic function of profits and losses is to
- reallocate resources from less desired to more desired uses
- In which of the following cases will total revenue increase? [price falls and demand is inelastic] [ price falls and supply is elastic] [price rises and demand is inelastic] [price rises and demand is elastic]
- price rises and demand is inelastic
- the quantity demanded of a product increases as its price declines because the
- demand curve is downsloping
- The market system's answer to the fundamental question" How will the goods and services be produced?" is essentially
- At least-cost prouction
- the price elasticity of demand
- tends to be elastic in high-price ranges and inelastic in low-price ranges
- The primary benefits of international trade include:
- the more efficient use of world resources and higher living standards