ch 4 MicroEcon

43 cards·by amcloopy

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The forces that make market economies work are price and quantity

false, buyers and supplies

In a free market, suppliers determine how much of a good will be sold and the price at which it is sold

false, market

A market is a group of demanders and suppliers of a particular good or service

true

Those who buy the product/service ultimately determine the demand for a product or service

true

An economy's scarce resources are allocated by economic planners

false, price

Similar products, numerous sellers, and numerous buyers are all characteristics of a perfectly competitive market

true

If buyers and/or sellers are price takers, then individually they have no influence on market price

true

Monopoly, perf competitive, monopolistic competitive, and oligopoly are ranked in order by te # of firms from the most to the least

false, least to most

If a good is normal then an increase in income will result in no change in the demand for the good

false, increase in demand

If Francis receives a decrease in his pay, we would expect Francis' demand for each good he purchases to remain unchanged

false, decrease in demand

If the price of a sub to good x increases then the demand for good x will decrease

false, will increase

Two goods are subs if a decrease in the price of one good increases the demand for the other good

false, only if price increases in the one good

For economists, peoples tastes and demand are beyond the realm of economics

false

Economists in general do not try to explain peoples tastes, but do try to explain what happens when tastes change

true

You love PB, 50% of peanut crop in south has been wiped out, prices will double by the end of the year, ur demand will increase by end of yr

false, demand will decrease

banana creme pie made w/ pudding, price of bananas is higher. Your demand for vanilla pudding will decrease

true

According to the law of demand price and quantity supplied are inversely related

false

A table that shows the relationship b/w the price of a good and the quantity demanded is called a demand table

false, demand schedule

When referring to the variables price and quantity demanded, price and quantity demanded are independent of each other

false, dependent

A demand curve llustrates the tradeoff b/w inflation and unemployment

false, relationship b/w price and quantity demanded

A demand curve is the downward sloping line relating the price of the good to the quantity demanded

true

A change in the price of the good or service would not shift the demand curve for a good or service

true

When we move up or down a given demand curve, only price is held constant

false, nothing is constant

The sum of all individual demand curves for a product is called total demand

false, market demand

If buyers now wanted to purchase larger quantities of vanilla coke, the demand curve for vanilla coke would shift to the left

false, to the right

A very hot summer in Atlanta would cause the demand for lemonade to shift to the left

false, to the right

A country with an aging pop will generally experience no change in either market demand or individual demand for prescription drugs

false, increase in demands

An increase in the # of scholarships awarded for college education would increase the supply of education

false, decrease

The market supply curve shows the total quantity supplied at any price

true

An advance in technology will increase a firms costs

false, decrease

A supply curve slopes upward b/c as more is produced total cost of production falls

false, increases

Market, to find total amount supplied at a particular price, we add up all of the amounts firms are willing and able to supply at that price

true

Funsters sells doll for $15, competitor Toysorama willmass produced a doll in 6 weeks for $5. Funsters should increase the supply now b4 Toy

true

The unique point at which the supply and demand curves intersect is called market unity

false, market equillibrium

The unique point at which the supply and demand curves intersect is called market unity

false, market equillibrium

The price where quantity supplied equals quantity demanded is called the coordinating price

false, equillibrium price

A decrease in resource costs to firms in a market will result in a decrease in equillibrium price and an increase in equillibrium quantity

true

Surplus in a market, actual price is above equillibrium price and quantity supplied is greater than quantity demanded

true

When there is a shortage in a market, there is downward pressure on the price

false, price rises

Suppose that the # of buyers in a market increases and a technological advancement occurs also.

In this market we would expect equillibrium quantity would increase, but the impact on equillibrium price would be ambiguous

Incomes of buyers in a particular market for a noraml good decline and there is also a reduction in input prices. In this market, we expect,

the equillibrium price would decrease, but the impact on the amount sold in the market would be ambiguous

Demand decreases and supply decreases we would expect

equillibrium quantity would decrease, but the impact on equillibrium price would be ambiguous

oak tables=normal goods. EQ price of oak tables if price of maple rises saw price increases

Price will rise and the effect on quantity is ambiguous