Vocab
Liquidity is a measure of how easuly an asset can be ___
converted into the medium of exchange
The bicycle market includes four members, Mike, Stacey, Lin, and Jacob. Mike supplies 35 bikes, Stacey 20, Lin 65, and Jacob 5. What is the total quantity of bikes available in the market?
125
For a perfectly competitive firm maximizing its profits, which set of equalities is TRUE?
Price=Marginal Revenue, Price=Marginal Cost, and Marginal Revenue=Marginal Cost are correct.
Residents of what city wore masks in 2010 to protect themselves from smog?
Moscow
Which of the following would lead to an increase in the supply of grapes?
The invention of a new machine to speed up grape picking
An oligopoly is defined as a market in which
a small number of producers dominate supply
Average labor productivity
Which ancient philosopher is noted for writing some of the earliest known economic theory?
Aristotle
The government may impose a ___ to remedy a negative externality or a __ to remedy a positive externality.
tax:subsidy
A decrease in demand implies that consumers ___ compared to before.
purchase fewer units of a good at any given price
The concept of opportunity cost is more closely linked to which of the following?
a)trade offs b)normative decision making c)rationality d)welfare e)deadweight loss
a)trade offs
In a recent survey, what magazine identified six places with special vulnerability to climate change?
Time
The socially optimal level of production for a good with a positive externality is determined by setting ___
social benefits equal to supply
What administration felt the Paris Agreement placed "am unfair economic burden" on American workers, businesses, and taxpayers?
Trump
Margo's bakery is committed to producing as many cakes as consumers want to buy at a fixed price of $15 per cake. This is an example of __ supply curve.
perfectly elastic
What type of analysis is "the proper role for government should be economic decision making"?
Normative analysis
Which of the following best describes the long erm trend of unemployment in the U.S during the 20th century?
a)constantly increasing b)constantly decreasing c)decreasing and then increasing d)increasing then decreasing e)it is not increasing
e)it is not increasing
How do profits help to allocate resources in a competitive market?
When an industry is profitable, it sends a signal that its product is valued more than others, and it encourage more resources to be used in producing that good
If breaking up a monopoly is not an option, then a government may choose
both to take ownership of the firm and to regulate the firm's prices
If a 4% increase in price causes a 1% reduction in the quantity demanded of the same good, we would say that good is ___
Inelastic
A public bad is the ___ of a public good.
negative expression
What is an example of a natural activity that adds greenhouse gases to the atmosphere?
Volcanic eruption
Which of the following statements is TRUE?
a)Normative economics makes predictions about what will happen under a particular economic circumstance b)normative economics is ultimately the same as positive economics c)Positive economics attempts to identify cause-and-effect relationships d)positive economics includes value judgements e)normative economics focuses on "what is" concerning economic issues
c)Positive economics attempts to identify cause-and-effect relationships
What is an effect on the consumer of the existence of a monopoly?
transfer of consumer surplus to producer surplus
A creator of a new medical device is granted a patent for her invention. This device is most likely to be produced in a(n) ___ during the life of the patient.
Monopolistically competitive market