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Academic Decathlon > economics 151-225 > Flashcards

economics 151-225 Flashcards

1
Q

what happens to the equilibrium price of a good if there is an increase in demand ceteris paribus

A

the price increases

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2
Q

what is the market supply of a good

A

the sum of individual supply for each supplier in a market

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3
Q

what happens to the exchange quantity of a good if there is an increase in supply ceteris paribus

A

the exchange quantity increases

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4
Q

what is the market clearing price of a good

A

the equilibrium price

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5
Q

the upward slope of the supply curve is explained by the law of increasing marginal…

A

cost

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6
Q

you can sell 10 hockey pucks at $5 each or 9 hockey pucks at $6 each. Calculate the PED

A

10% change in quantity demanded/20% change in price PED=1/2=.5

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7
Q

income elasticity of demand measures…

A

responsiveness of demand to consumer income

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8
Q

cross elasticity of demand measures

A

responsiveness of demand for a good to the price of complimentary and substitute goods

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9
Q

if price elasticity of demand is equal to one, the demand is…

A

unit elastic

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10
Q

if price elasticity of demand is equal to zero, then demand is…

A

this

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11
Q

what is the most important resource market in the us

A

the labor market

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12
Q

how do most economists feels about free trade

A

most economists support free trade

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13
Q

what happens to the total consumption possibilities for two nations that specialize according to their comparative advantages and then trade

A

total possible consumption increases

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14
Q

what is barter

A

the exchange of resources goods or services without using money

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15
Q

how did japan achieve rapid economic growth in the 1970s and 1980s

A

by training its workforce well and by applying technology

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16
Q

what do we use to avoid the inefficiency of a barter system

A

money or any other medium of exchange

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17
Q

what is a market

A

a mechanism that brings buyers and seller together for the purpose of making an exchange

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18
Q

what is division of labor

A

the act of dividing the production of a good into simple separate tasks

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19
Q

what is fiat money

A

a form of money that is only valuable as a medium of exchange not as a commodity and only because people believe the issuing government can back its value

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20
Q

what kind of money s paper currency

A

fiat money

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21
Q

what happens to the quantity demanded of a good as the price increases

A

quantity demanded decreases

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22
Q

what happens to the equilibrium price of a good if there is an increase in supply, ceteris paribus

A

the price decreases

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23
Q

what is demand

A

the relationship between the price of a good and the quantity of it that consumers are willing and able to buy

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24
Q

how is quantity supplied related to supply

A

supply is the quantity supplied at each possible price within a range of prices

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25
what happens to exchange quantity if there is a simultaneous increase in demand and decrease in supply
we cannot tell exactly
26
what happens to the quantity demanded of a good as the price decreases
quantity demanded increases
27
why is the equilibrium price of a good sometimes called the market clearing price
because when there is an equal number of buyers and sellers, the market is said to clear
28
what happens to the equilibrium price of a good if there is a decrease in demand, ceteris paribus
the price decreases
29
what is quantity demanded
the quantity of a good that consumers are willing and able to buy at a particular price
30
what are of economics explores the individuals preference for a particular good
microeconomics
31
what is the term for a situation in which resources, goods, or services are exchanged
market
32
how are two boys trading baseball cards an example of a market
they are exchanging goods
33
what happens to equilibrium price when there is a simultaneous decrease in demand and increase in supply
equilibrium price decreases
34
what happens to equilibrium price if there is a simultaneous increase in both supply and demand
we cannot tell oops
35
what is the equilibrium quantity of a good or service
the quantity at which sellers ask the price that buyers are willing to spend
36
what happens to equilibrium price if there is a simultaneous increase in demand and decrease in supply
equilibrium price increases
37
what area of economics explores the behavior of individual producers and consumers
microeconomics
38
what happens to exchange quantity if there is a decrease in supply
exchange quantity decreases
39
what area of economics explores the components and behaviors of individual markets
microeconomics
40
how does a market system eliminate the need for buyers and sellers to negotiate over every individual change
with a price system
41
what is individual supply of a good
the supply of an individual producer
42
what is individual demand
the demand of one consumer for a good
43
quantity supplied increases as price increases because higher prices provide a (positive/ negative) incentive for producers
positive
44
if five dollars are worth two franc, then the ____ rate is 2.5 to 1
exchange
45
specialization in trade result in (increased/decreased) production
increased
46
when people specialize, how do they satisfy their wants and needs for goods and services they do not produce?
trade
47
specialization (increased /decreases) efficiency
increases
48
specialization (increases /decreases) dependence on the self-intrest of others.
they become interdependent
49
when individuals specialize, what must they do to satisfy their wants
trade
50
are the workers in an assembly line independent or interdependent?
interdependent
51
what term refers to any situation in which goods, services, or resources are exchanged?
a market
52
trading is simpler with money than with a better system because bartering requires a "double _____ of wants"
coincidence
53
what is the economic term for goods that are produced in a foreign country and purchased by domestic consumers?
imports
54
people tend to specialize in goods in which they have (an absolute advantage/a comparative advantage)
a comparative advantage
55
tim can write more flashcards per hour than sam can. Does tim have an absolute or a comparative advantage in flashcards?
Absolute (he many have a comparative advantage as well, but there is not enough information in the question to determine this)
56
Specialization and trade result in (increased/decreased) consumption
increased
57
specialization leads to (interdependence/independence)
interdependence
58
what is required for specialization to occur?
voluntary exchange
59
who experiences a greater level of interdependence: "jack-of-all-trades" or a specialist?
specialist
60
which is likely to require the most education and skill: division of labor or specialization?
specialization
61
what component of a market economy allows producers to specialize?
voluntary exchange
62
producers tend to specialize in the good or service that they can produce at the lowest _____ cost
opportunity
63
what is the economic term for good that are produced domestically and sold to consumers in another country
exports
64
t/f: barter requires fewer transactions than trade with the use of money?
TRUE
65
What is the term for the unique type of specialization that occurs in an assembly line?
division of labor
66
international trade occurs when one country produces a product and (imports/exports) it to another country
exports
67
What is required for voluntary exchange to occur?
al participating parties must expect to benefit from the exchange
68
t/f: people desire money for its intrinsic value.
FALSE
69
tariffs and quotas are examples of barriers to _____.
trade
70
what term refers to the trade of one good directly for another, without the use of money?
barter
71
A negative cross elasticity of demand tells us that two goods are (complements/substitutes).
complements
72
A positive cross elasticity of demand tells us that two goods are (complements/substitutes).
substitutes
73
Ticket prices go up at Clippers games, and overall ticket revenue increases at the Staples Center. This means that demand in this price range is _____.
inelastic
74
Prices increase on Daewoo automobiles, and quantity demanded plunges to zero. Demand in this price range is _____.
perfectly elastic
75
"% change in quantity divided by % change in price" is the generic formula for ________.
price elasticity of demand

Academic Decathlon (35 decks)

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