Log in Sign up. How can we help? What is your email? Upgrade to remove ads. Which statement is a normative statement? The best way to encourage growth in the economy is through government spending. Economists may disagree about policies because. Individual decision makers in the economy. Because the United States is a rich nation, free health care can be provided for all citizens without considering the issue of scarcity. The primary emphasis in macroeconomics is on.

Whenever a choice is made. Khalil is offered a free ticket to the opera. His opportunity cost of going to the opera is. Which option can best be considered the resources used in the production of computers? The opportunity cost of something is.

The problem of scarcity is confronted by. Scarcity in economics means. Manny is attending college and majoring in economics. By doing so, Manny is primarily improving his. If you choose to buy the new economics textbook, the opportunity cost is: If the state government allocates additional spending on education, the opportunity cost is: Economists disagree more over normative economics than positive economics.

The basic concern of microeconomics is: When people are forced to make choices, they are facing the concept of. A high-school graduate who gets a college degree is adding to the economy's stock of. Which is not an example of a resource? Which statements is a positive statement? Which is a normative statement? The minimum wage should be high enough that families will not live in poverty.

X is positive; Y is normative. Economists who are asked to choose between two different government policies may disagree because. If resources are "scarce", it means that they. Although fresh water is very abundant in most places, it is scarce because. InCongress passed a tax cut. Because taxes were reduced, the country did not incur any opportunity cost from this decision.

The study of economics arises because of the necessity for choice, and the necessity for choice arises because of the fundamental problem of scarcity of resources. The best measure of the opportunity cost of any choice is. The study of a single firm and how it determines prices would fall under the study of.

Which subject would be studied in macroeconomics? The latin phrase ceteris paribus means. The importance of an economic model is that it allows us to. A simplified representation that is used to study a real situation is called. In building model, economists avoid making any assumptions that might leave out any aspect of reality.

If one group in the economy spends more, the incomes of other groups will increase. In the product market, households spend money to buy goods and services. Buying vegetables produced by local farmers' market benefits the local community because.

A local grocery store benefits when a new furniture factory moves to town and hires workers because. In building models, economists avoid making any assumptions that might leave out any aspect of reality. The basic principle of the circular-flow diagram is that the money flowing into each sector or market is greater than the money that flows out.

In the circular-flow diagram, an individual or a group of people usually a family who share their income would be called a. The basic principle of the circular-flow diagram is that. Within the circular-flow diagram, the factor market is the place where. When a local factory closes, why does it spell bad news for the local restaurants? Unemployed factory workers have lower incomes and are less likely to dine out.

If the value of homes in University City increases, and as a result, the people of University City spend more, incomes, in university City will.

One person's spending is another person's. The models that economists construct. The simplest circular-flow model shows the interaction between households and firms.

In the circular-flow diagram, the product market is where. Within the circular-flow diagram, the market for goods and services is the place where.

Because one person's spending is another person's income. One person's spending is another person's income.

In building models, economists often assume that opportunity costs don't matter. If one group in the economy spends more, this increases their share of income and the incomes of other groups will decrease.

Labor and capital are the only two factors of production. All points inside the production possibility frontier represent. I put efficient production points If an economy is producing a level of output that is on its production possibility frontier, the economy has. I put no idle resources but is using resources inefficiently Suppose the student completes a speed reading course that allows him to do the same amount of studying in half as many hours.

Which statement is now true of his opportunity costs? NOT the opportunity cost of studying has increased Point Z lies outside of the PPF. The effect of an increase in productive inputs such as labor and capital can be shown by.

NOT a point inside of the production possibility frontier. I think it is an outward shift of the PPF. The PPF will shift outward for which reason?

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NOT an upgrade of capital to the best available technology On any given production PF, the minimum quantity of one good that can be produced for any given production of the other can be seen. Suppose residents of Montana operate on their PPF and want to see increased wheat production as well as an increase in the production of flying-fish rods. According to the PPF, this cannot happen without new resources or technological improvement. A typical, bowed-out PPF between two goods--guns and butter--shows that the opportunity cost of butter in terms of guns increases as more butter is produced.

This implies that the opportunity cost of guns in terms of butter decreases as more guns are produced. The PPF that is a line sloping down from left to right would suggest that. If an economy has to sacrifice increasing amounts of good X for each additional unit of good Y produced, then its PPF is.

An increase in efficiency means that an economy has. Economists say an economy is efficient when. Assume an economy is operating on its PPF, which shows the production of military and civilian goods. How many stock market millionaires the output of military goods is increased, the output of civilian goods.

Suppose Oklahoma decides to produce only two goods: If they are currently operating on their PPF, as oil production increases, the production of football helmets will. An economy is efficient in product if it is.

I put mini forex real time charts possible to produce more of one good without producing less of another NOT it is efficient in production and allocation If an economy has to sacrifice only one unit of good X for each unit of good Y produced, regardless of the output mix, then its production possibility frontier has: NOT a decreasing neg slope Examine the table Trade-off of Study Time and Leisure Time.

A student sleeps 8 hours per day and divides the remaining time between study and leisure time. The table shows the combinations of study and leisure time that can be produced in the 16 waking hours of each day. Suppose this student is studying 4 hours and spending 10 hours doing leisure activities.

What is true about this allocation of his scarce resources? NOT This point is both efficient and feasible. The effect of a tremendous natural disaster can be shown by: NOT a point inside the PPF A typical, bowed-out production possibility frontier between two goods—guns and butter—shows that the opportunity cost of butter in terms of guns increases as more butter is produced.

SHifting dragon binary option curve to the right implies. The economy's factors of production are not equally suitable for producing different types of goods.

Consider a production PF for Iraq. The production PF illustrates that. An economy is efficient in production if it is. If a student decides to consume one additional hour of leisure time how many hrs of study must he give up. The law of demand states that other things equal. As the price of a DVD rises, fewer DVDs are rented. If goods A and Z are complements, an increase in the price of good Z will. Assuming that ice cream is a normal good, which statement could cause an increase in the demand for ice-cream.

AN increase in the price of substitutes for ice cream such as frozen yogurt if thats gonna be more expensive hellll naw u want ice-cream!!!!!! Raclette is a popular wintertime dish in Switzerland. It is essentially melted Raclette cisco systems stock option over boiled new potatoes.

If the price of Raclette cheese decreased, there should be: It is not an increase in demand for Raclette cheese and for new potatoes If coconuts are a normal good and consumers believe that the price of coconuts will rise significantly in the near future, it will be represented in the figure as a movement from: An increase in demand for good X could be caused by a decrease in msnbc work at home jobs price of X.

False means that the demand contribution of demutualization to the development of stock market shifted. Not that the quantity demanded rose or fell because of a change in price!!!

Which example illustrates the law of demand? A decrease in the price of a good will 22 rules for using bollinger bands in. Which factor will result solely in a movement along the demand curve for a particular good? The forex music box curve for season tickets for the Miami Dolphins is the graphical representation of how many season tickets consumers want to buy at any given price.

If coconuts are a normal good and the price of coconuts increases, it would be represented in the figure as a movement from. B to A, leverage forex example it goes from lower to higher on the demand curve. If goods A and B are substitutes, a decrease in the price of good B will. According to the law of demand, if the price of steak increases in Rhode Island, the demand for steak will decrease in Rhode Island.

An increase in income will always shift the demand curve to the right. What is the different between quantity demand and teachers in northern new hampshire should earn more money is a normative statement. A change in athens stock exchange index companies demanded is a movement along the demand curve, and a change in demand is a SHIFT of the demand curve.

A leftward shift of the demand curve shows that. If there is an increase in preference for coconuts, it will be represented as a movement from. If there is a widely held expectation that prices of cotton will be higher next year, then.

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If community income increases, demand for taxis increase, and bus services decrease. A rightward shift on the demand curve shows that. If coconuts are a normal teachers in northern new hampshire should earn more money is a normative statement and the income level of consumers falls, it will be represented in the figure as zillow stock options movement from.

Bangladesh produces much of the clothing worn in the United States because it can produce more clothes than the United States. The opportunity cost of producing 1 box of cell phones for Sweden is: Sweden produces k herring and 10k cell phones; finland produces 50k herring and 10k cell phones.

NOT 5 boxes of herring 0. Free trade between countries. NOT will shift the domestic production possibility frontier to the right. Looking at figuresthe packing jobs from home halifax west yorkshire lie outside of the line. An economy is said to have a comparative advantage in the production of one good if it.

Sweden has an absolute do binary options work yahoo in producing: Buyback of shares as per companies act 2016 can gain from trade with other nations even if they are less productive in all industries than the nations they trade with.

If the US is more productive than Mexico in all lines of production, then the US cannot benefit from trade with Mexico. Which statement is true. It is possible to have an absolute disadvantage in doing something but still have a comparative advantage in the same thing.

An economy that has the lowest opportunity cost for producing a particular good is said to have: Because of trade, a country may: Gains from trade exist for: Individuals gain from trade because. Which book illustrates the advantages of specialization using an eighteenth-century pin factory?

The Wealth of Nations, by Adam Smith. Examine the table Coffee and Salmon Production Possibilities II. This table shows the maximum amounts of coffee and salmon that Brazil and Alaska can produce if they just produce one good.

Brazil has a comparative advantage in producing: Alaska has an absolute advantage in producing: Finland has a comparative advantage in producing: The concept of comparative advantage is based upon: Examine the table Comparative Advantage I.

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Sweden has a comparative advantage in producing: Finland has an absolute advantage in producing: The table shows the maximum amount of fish and coconuts that Tom and Hank can produce if they produce only one good.

Tom produces and consumes 9 fish and 2 coconuts, and Hank produces and consumes 3 fish and 2 coconuts. Now they decide to engage in trade. Which statement is incorrect? NOT After trade it is possible for Tom to consume 9 fish and 2. I think it is 'For both to become better off, each should specialize in the production of some good. However, because Hank is equally productive in both goods, it doesn't matter which good each specializes in. In one hour, the United States can produce 25 tons of steel or automobiles.

In one hour, Japan can produce 30 tons of steel or automobiles. This information implies that: United States has a comparative advantage in the production of automobiles. Brazil has an absolute advantage in producing: Brazil produces 40 coffee, 20 salmon; Alaska produces 20 for both.

In the local market for coffee, what would happen if Joyce's Java and Everyday Joe's coffee shops go out of business? The supply curve shifts to the left. Over the past few years, the technology associated with producing flat-panel televisions has improved. Consider the supply curve for cotton shirts. An increase in the price of cotton will.

An improvement in the technology used to harvest coconuts e. Examine the figure Supply of Coconuts. If the prices of inputs e. The market equilibrium is found at the: Excess supply occurs when: A technological advance in the production of automobiles will: An increase in supply of a good can result from: NOT a fall in the price of the good.

When the price of lamps increases, the: If the price of coconuts decreased, it would be represented in the figure as a movement from: NOT shift to the right perhaps moves from higher to lower on same line. Market equilibrium occurs when: If the quantity supplied in a market exceeds the quantity demanded in a market, prices would be expected to: Examine the figure Demand and Supply of Gasoline.

A factor that may have changed supply from S1 to S2 is: The price and quantity would both increase. Given a supply curve that is positively sloped and a demand curve for a normal good that is negatively sloped, an increase in income will most likely result in.

A newspaper story recently reported that the price of new cars, a normal good, has decreased and the quantity of new cars sold has dropped. The new price and quantity could have been caused by: The market price of airline flights increased recently.

Some economists suggest that the price increased because there has been an increase in the number of business travelers. They believe that in the market for flights: The market for corn is in equilibrium. Which statement is most likely to increase the equilibrium price of corn? When the price of DVD players falls, the quantity of DVD players sold increases.

This set of observations can be the result of the: NOT demand shift to right NOT supplyshift to left. The price of microchips used to produce computers falls. NOT fall and decrease fall, increase?

The market for lemonade is in equilibrium, and the price of lemons rises. How will this affect the lemonade market? Consider the market for corn. What happens if there is an increased demand for corn tortillas and at the same time a new corn seed becomes available that dramatically increases the per-acre yield?

NOT indeterminate; quant decrease indeterminate; quant increase. Suppose the local real estate market is in equilibrium. A recession causes local household incomes to decline. At the same time, construction of a large subdivision of new homes has just been completed.

Given the resulting equilibrium after a change in supply from S1 to S2: If demand decreases and supply increases, the direction of change in the equilibrium quantity is unpredictable unless the relative magnitudes of the demand and supply changes are known. Which statement ALWAYS results in an increase in price and quantity? NOT an increase in supply and a decrease in demand inc dem and no change in supply.

If tortilla chips are a normal good, what happens to equilibrium price and quantity when there is an increase in income? This can be caused only by: NOT increase in price of beef inc income of ppl who eat taco. In the market for corn tortilla chips, what would cause a price increase? The market for milk is initially in equilibrium.

Milk producers engage in an advertising program to encourage milk drinking, which succeeds in shifting consumer tastes toward drinking milk. At the same time, more milk producers enter the market. Standard demand and supply analysis states that: If consumer tastes for electric cars increase over the next 10 years, there will be an increase in the demand for electric cars, higher electric car prices, and an increase in the equilibrium quantity of electric cars.

If D1 or S1 is the original curve and D2 or S2 is the new curve, which of the graphs shows what may happen in the market for DVDs if the cost of producing DVD players increases? D1 doesn't shift up and to the right to D2. If D1 or S1 is the original curve and D2 or S2 is the new curve, which of the graphs illustrates what may happen in the market for DVDs if there is an increase in the cost of a movie ticket at the local theater?

If D1 or S1 is the original curve and D2 or S2 is the new curve, which of the graphs shows what may happen if some of the stores that rent DVDs close?