Definitions
Graphs
Tariffs
Demand
Income Elasticity
100
a loss of efficiency for society as a whole.
A. scarcity
B. price elasticity of demand
C. deadweight loss
D. total revenue test
C. deadweight loss
100
What graph is this
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Equilibrium
100
What is a tariff?
A. A tariff is a tax on imported goods.
B. A tariff is a plumbing company.
C. A tariff is a way a President can limit their goods to the United States
D. None of the above
A. A tariff is a tax on imported goods.
100
When will people search harder for substitutes for oil?
A. When its price is high
B. When its price is low
C. When its price stays the same
A. When its price is high.
100
If the price elasticity of demand is less than 1, then consumer demand is :
a. unitary elastic.
b. elastic.
c. unrelated to the elasticity of demand.
d. inelastic.
d. inelastic
200
Goods that experience an increase in demand due to an increase in a consumer's income.
A. substitute goods
B. complement goods
C. normal goods
D. inferior goods
C. normal goods
200
If there is a straight vertical line on a graph what is the line?
A. Perfectly inelastic
B. Perfectly elastic
C. Relatively inelastic
D. Relatively elastic
A. perfectly inelastic
200
Who pays for the tariffs
A. The country importing the goods.
B. Nobody its free!!!
C. Most of the time a random country pays for the good.
A. The country importing the goods.
200
True or False: As the price of apples rises, the demand for apples falls.
False.
200
If the income elasticity of a good is positive, we can conclude that the good is.
A. Normal
B. Luxury good
C. A necessity
D. An inferior good.
A. Good
300
the demand for a good or service is greater than the availability of the good or service.
A. supply
B. scarcity
C. demand increase
D. tariffs
B. scarcity
300
If a graph shows an examination of the additional benefits of an activity compared to the additional costs incurred by that same activity. What is the graph showing?
A. comparative advantage
B. marginal analysis
B. marginal analysis
300
A tariff on imports benefits domestic producers of the imported good because
a. They get the tariff revenue.
b. It raises the price for which they can sell their product on the domestic market.
c. It prevents imports from rising above a specified quantity.
d. It reduces their producer surplus, making them more efficient.
e. All of the above.
b. It raises the price for which they can sell their product on the domestic market.
300
When the price of a good increases, the quantity demanded _____
A. Decrease
B. Increases
C. Stays the same
A. Decreases
300
If the price elasticity of demand is greater than 1, then consumer demand is
a. unrelated to the elasticity of demand.
b. unitary elastic.
c. inelastic.
d. elastic.
d. elastic
400
a government-imposed trade restriction that limits the number or monetary value of goods that a country can import or export during a particular period
A. quotas
B. tariffs
C. utility
D. total cost
A. quotas
400
When you do the base times width divided by 2 you're figuring out the _____
Consumer surplus
400
Under a tariff, the quantity of imported goods
A. Falls
B. Rises
C. Stays the same
A. Falls
400
Consider the market for hamburgers. Suppose an innovation in meat processing technology makes it possible to produce more hamburgers at a lower cost than ever before.
Holding all else constant, this will lead to a:
a. Change in Demand
b. Change in Supply
c. Change in Demand and Change in Supply
d. No change in Demand and Supply
b. Change in Supply
400
Elasticity is the same as the slope of the demand curve. True or false
False
500
a balance achieved between two desirable but incompatible features
A. trade-offs
B. price balance
C. opportunity cost
D. Utility
A. trade-offs
500
when you subtract total marginal costs from total revenue you're figuring out the _____
producer surplus
500
When a large country charges a tariff on imports
a. The world price falls.
b. Demanders of the good on the domestic market are hurt
c. Foreigners are hurt.
d. The domestic price rises by less than the tariff.
e. All of the above.
e. All of the above
500
What are 4 reasons why change in demand occurs?
consumer expectations, tastes, income, market size
500
True or False: Income elasticity for a normal good is always positive
True