ECON 2030 : ECON 2030 FINAL REVIEW

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azuremammoth471

15 Mar 2019

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Suppose further that national income is decreasing while, at the same time, labor costs in the chewing gum industry increase: ***in the situation above, the equilibrium quantity of chewing gum transacted will _____, everything else held constant. In the situation above, the demand for chewing gum will _______, everything else held constant. Inferior goods = income decrease, want to buy more of it. In the situation above, the equilibrium price of chewing gum will ____, everything else held constant. In the situation above, producer surplus in the market for broccoli will. Income increase = less demand = lower prices = less surplus (can"t get more money for something: ***in the situation above, economic surplus in the market for broccoli will _______, everything else held constant. On a production possibilities frontier (ppf) graph, a specific combination of goods is said to be attainable and efficient at a particular point in time if it lies _____ the ppf.

Related Questions

1. To establish a market, which of the following are essential?

1. A marketplace or a location

2. Potential buyers

3. An auctioneer

4. Potential sellers

A. 1, 2 and 4

B. 1, 2, 3, and 4

C. 1 only

D. 2 and 4

E. None of the above

2. Marketing value is:

A. The share of consumer food expenditures going to farmers

B. The share of consumer food expenditures going only to processors

C. The share of consumer food expenditures going to agribusinesses

D. The share of consumer food expenditures going only to marketers

E. None of the above

3. Micropolitan area contains:

A. One urbanized area of at least 10,000 but less than 50,000 people

B. One urbanized area of at least 20,000 but less than 50,000 people

C. One urbanized area of at least 30,000 but less than 50,000 people

D. One urbanized area of at least 40,000 but less than 50,000 people

E. None of the above.

4. Which of the following does not belong to Maslow's hierarchy of needs?

A. Self-actualization

B. Political views

C. Esteem

D. Love/belonging

E. Physiological

5. The process of identifying and focusing on target submarkets is known as:

A. Market collusion

B. Market targeting

C. Market segmentation

D. Market development

E. None of the above

6. Given the following information concerning elasticities for bubble gum:

Own-price elasticity of demand = -0.3

Own-price elasticity of supply = 1.7

Income elasticity = 0.6

Cross-price elasticity concerning chewing gum = -1.5,

then bubble gum demand is ___ and it is a ___ good.

A.Unitary elastic; inferior

B.Inelastic; inferior

C. Elastic; inferior

D. Inelastic; normal

E. Elastic; normal

7. The cross-price elasticity for peanut butter demand with respect to the price of jelly is equal to -0.8. If the price of jelly decreases by 10%, the consumption of peanut butter will:

A. Decrease by 8%

B. Decrease by 1.25%

C. Increase by 1.25%

D. Increase by 8%

E. None of the above

8. The percentage change in quantity demanded of a commodity or product given a 1% change in income is captured by:

A. Own-price elasticity of demand

B. Cross-price elasticity

C. Own-price flexibility

D. Own-price elasticity of supply

E. Income elasticity

9. The most important determinant of supply elasticity is:

A. Length of time

B. Degree of substitutability

C. Degree of complementarity

D. Importance in the budget

E. Luxury versus necessity

10. Assume that a retailer sells 2,000 six-packs of Pepsi per day at a price of $3.00 per six-pack. Also, assume the cross-price elasticity for Pepsi with respect to the price of Coca Cola is 0.5. If the price of Coca Cola rises by 10 percent, what will be the new quantity of six-packs sold by Pepsi?

A. 1,000

B. 2,100

C. 2,400

D. 12,000

E. None of the above

burgundygnat457

1.
Which of the following is not a characteristic of a market?

A. Markets are physical locations where trading occurs
B. Voluntary exchanges between economic agents
C. Flexible prices
D. There are rules and arrangements for trading

2.
How would a decrease in supply affect the equilibrium price in a market?

A. The equilibrium price would remain the same
B. The equilibrium price decreases.
C. The equilibrium price increases.
D. More information is needed. It may increase, decrease, or remain the same.

How would the equilibrium price in a market be affected if there were a large increase in supply and a small increase in demand?

A. The equilibrium price would remain the same
B. The equilibrium price decreases.
C. The equilibrium price increases.
D. More information is needed. It may increase, decrease, or remain the same.

How would the equilibrium price in a market be affected if there were a large decrease in supply and a small decrease in demand?
A. The equilibrium price would remain the same
B. The equilibrium price decreases.
C. The equilibrium price increases.
D. More information is needed. It may increase, decrease, or remain the same.

4.
What does it mean to say that we are running out of "cheap oil"?
A. That there are declining reserves of low-quality oil, but there is still plenty of high-quality oil remaining.
B. That world demand for oil is declining , which will raise the price of oil in the future.
C. That we will soon seplete all the world's oil reserves, which will cause the price of oil to increase significantly.
D. That oil reserves are becoming more expensive to find and extract over time.

What doese this imply for the price of oil in the future?
A. the demand for oil will increase, which will lead to lower prices in the future.
B. the demand for oil will decrease, which will lead to higher prices in the future.
C. The supply of oil will increase, which will lead to lower prices in the future.
D. The supply of oil will decrease, which will lead to higher prices in the future.

5.
What is meant by holding all else equal and how is this concept used when discussing movements along the demand curve?
A. everything else in the economy is held constant, including the price of the good.
B. All variables that can affect the demand for the good are held constant.
C. All variables in the model are set to equal values.
D. All of the above.

We make the assumption of holding all else equal when considering demand curves since we want to focus on the changes in the quantity demanded that result from changes in [ only the price of a good / only the income of consumers / the price of a good and incomes ]