Brainscape's Knowledge GenomeTM


Top Flashcards (Certified)
All Flashcards

Macroeconomics > MMacro ch 1-4 > Flashcards

MMacro ch 1-4 Flashcards

1
Q

The DEMAND CURVE

A

Reflects an INVERSE RELATIONSHIP between PRICE and QUANTITY

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

CONSUMER SURPLUS

A

Marginal BENEFIT
WILLINGNESS TO PAY
VALUE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

PRODUCER SURPLUS

A

marginal COST
LOWEST acceptable price
PROFIT

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

If the CURRENT level of OUTPUT is at Q3, then…

A

Society should produce FEWER shoes

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

An ADVANCE technology would cause

A

the SUPPLY CURVE to SHIFT RIGHT

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

ABOVE market equilibrium (MIN)

A

PRICE FLOORS

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What causes surplus’ and fewer changes

A

PRICE FLOORS

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

BELOW market equilibrium (MAX- cause SHORTAGES)

A

PRICE CEILINGS

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

PRICE FLOORS and PRICE CEILINGS cause what?

A

CAUSE INEFFICIENCIES

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

where would the ALLOCATION of resources be the most efficient?

A

A + B

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

the OPTIMAL ALLOCATION of resources is found

A
  1. equilibrium
  2. Where MB = MC
  3. consumer / Producer SURPLUS are MAXIMIZED
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

The LAW of demand states that PRICE and QUANTITY demanded are

A

INVERSELY RELATED

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

A marginal thinker takes action when marginal BENEFITS ARE _____ to marginal COSTS.

A

ARE GREATER THAN

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

CETERIS PARIBUS means

A

” all other things CONSTANT” or “NOTHING else changes”

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

each of the following IS a demand curve shift EXCEPT

A

the PRICE of the good ITSELF

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

what is a DEMAND CURVE SHIFT

A
  1. change in customer incomes
  2. PRICES or related products
  3. future expectations of PRICE CHANGES
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

if e-cigarattes were banned and tobacco use increased, we might conclude that

A

e-cigs and tobacco products are SUBSTITUTES

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

the production possibilities curve that is a straight line has

A

a NEGATIVE slope that is constant as we move along from LEFT TO RIGHT

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

at the EQUILIBRIUM PRICE

A

there are NO pressure on PRICE to either rise of fall

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Cyclical unemployment does not include

A

Frictional, structural, and natural unemployment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

the CPI was 238 in one year and 244 the following year. How much did PRICE rise between those 2 years?

A

7.14% ???

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

T/F: Discouraged workers are counted as unemployed

A

FALSE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

T/F the minimum wage is a good example of a PRICE CEILING?

A

FALSE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

T/F: To an ECONOMIST, and increase in quantity demanded is the same thing as an increase in demand ?

25
a market is said to be in DIS-EQUILIBRIUM...
it exhibits wither a SURPLUS or a SHORTAGE
26
John has been described as lazy and is not interested in finding work. We would count him as?
not in the labor force discouraged worker
27
Table showing the relationship between priceand quantity demanded
demand schedule
28
Graph of the relationship between price andquantity demanded
demand curve
29
Horizontal sum of all individual quantities demanded by each buyer in the market at each price
market demand
30
demand INCREASES due to an INCREASE in a customer’s income, other things are constant
Normal good
31
demand DECREASES and the customer’s income increases and other things are constant Ex. store brands
Inferior good
32
Goods that can be used in the place of another good INCREASE of the price of one Leads to an increase in DEMAND for the other (ex. Hot dogs and burgers )
substitutes
33
Goods that are used together INCREASE in the price of one DECREASE in DEMAND for the other (pancake & syrup)
complements
34
Supply determinants remember to not trip Peter Parker
Resource prices (input) Technology Number of SELLERS Taxes and subsidies Prices of other goods and services Producer Expectations
35
supply determinants: decrease in price of microchips = increase of supply of
resource prices (inputs)
36
supply determinants: development of more effective wireless technology increases the supply of cell phones
technology
37
supply determinants: increase in the number of tattoo parlors = increase of supply of tattoos, formation of women basketball leagues = increase women basketball games
number of sellers
38
supply determinates: Expectation of a substantial rise in future log prices decreases the supply of logs today
producer expectations
39
shift demand curve
Price of the good itself, Income, Taxes, Expectations, Number of Buyers, Price of related goods
40
Other things equal, as the price rises, the quantity supplied rises, and as the price rises, the quantity supplied falls* A direct relationship.. what law is this?
law of supply
41
Price as a rationing device
Scarcity exists RESOURCES: producers who pay the price of them GOODS: the buyers who pay for the goods to be produced - all rational devices discriminate
42
Change in the demand curve : caused by a price increase move from point A to point B what happens
Price INCREASES Quantity DECREASES
43
What causes a change in the demand curve ( main reason- think of yourself)
change in price
44
change in demand ( how does it shift and why?)
demand shift decrease in demand = SHIFT LEFT increase in demand = SHIFT RIGHT
45
The weighted average of prices of a specific set of goods and services purchased by a typical household; a widely cited index number for the price level
customer price index
46
unemployment rate formula
number of unemployed / civilian labor forcex 100
47
employment rate
number of employed persons / civilian noninstitutional population x 100
48
caused by changing market conditions and represented by qualified individuals with transferable skills who change jobs
frictional unemployment
49
structural changes in the economy that eliminate some jobs and create others for which the unemployed are unqualified
structural unemployment
50
Unemployment caused by frictional and structural factors in the economy
Natural unemployment
51
Define economics
science of scarcity The wants are GREATER than the limited resources available
52
WHAT IS in economics
POSITIVE STATEMENT
53
WHAT SHOULD BE in economics
NORMATIVE STATEMENT
54
The numerical tabulation of the quantity supplied of a good at different prices. A supply schedule is the numerical representation of the law of supply.
supply schedule
55
what happens when a supply curve shifts left
decrease in supply
56
what happens when there is a supply curve to the right ( willing to sell more supply at every price)
increase in supply
57
UNSEEN forces in a FREE MARKET to reach equilibrium. interest and freedom of production and consumption
invisible hand
58
labor force participation rate
(civilian labor force/civilian noninstitutionalized population x 100).

Macroeconomics (5 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions