Zoey receives a big raise at work and decides to buy additional porcelain figuri
ID: 1213878 • Letter: Z
Question
Zoey receives a big raise at work and decides to buy additional porcelain figurines. Which of the following statements is TRUE?
Select one:
a. Zoey considers porcelain figurines to be a normal good.
b. Zoey considers porcelain figurines to be an inferior good.
c. Zoey's demand for porcelain figurines decreased.
d. Zoey's willingness to pay for porcelain figures has decreased.
Which variable is NOT a demand shifter?
Select one:
a. price of complements
b. price of substitutes
c. price of raw materials
d. tastes and preferences
If we expect the current poor weather conditions to lead to higher cotton prices in the future, the:
Select one:
a. current demand for cotton will decrease.
b. future demand for cotton will increase.
c. current demand for cotton be unchanged.
d. current demand for cotton will increase.
The supply curve illustrates:
Select one:
a. the relationship between the cost of production and price.
b. the relationship between the quantity supplied and the price of a good.
c. the total cost of producing a good.
d. the willingness to produce a good if the technology to produce it becomes available.
The quantity supplied of oil is the amount that:
Select one:
a. producers plan to sell during a given time period at a given price.
b. is actually bought during a given time period at a given price.
c. producers wish they could sell at a higher price.
d. people are willing to buy during a given time period at a given price.
In the week before Hurricane Katrina, the price of flashlights rose in New Orleans because of:
Select one:
a. an increase in supply.
b. an increase in demand.
c. a decrease in supply.
d. a decrease in demand.
A government subsidy to producers causes the:
Select one:
a. supply of the product to increase.
b. supply of the product to decrease.
c. supply curve to change slope.
d. supply curve to shift up and to the left.
The quantity demanded is the quantity that buyers are:
Select one:
a. willing to buy but they cannot afford to pay.
b. able to buy at a given income level but not willing to pay.
c. willing to buy at a given income level.
d. willing and able to buy at a given price.
A supply curve indicates that:
Select one:
a. the quantity supplied of a good is higher when the price of that good is higher.
b. the quantity supplied of a good is higher when the price of that good is lower.
c. the supply for a good is higher when the price of that good is lower.
d. the supply for a good is higher when the price of that good is higher.
Cell phone data plans are most useful when used with a smartphone, and smartphones are most useful when used with a data plan. As the price of data plans falls, the demand for smartphones will:
Select one:
a. decrease, because smartphones and data plans are substitutes.
b. increase, because smartphones and data plans are complements.
c. decrease, because smartphones and data plans are complements.
d. increase, because smartphones and data plans are substitutes.
Which statement most accurately explains the upward trend in the market price of oil since around the year 2000?
Select one:
a. The supply of oil has increased faster than the demand for oil has increased.
b. Both the demand for and the supply of oil has decreased.
c. The demand for oil has increased faster than the supply of oil has increased.
d. The demand for oil has decreased while the supply of oil has increased.
If the market price is below the equilibrium price, which of the following will occur?
Select one:
a. Quantity demanded will exceed quantity supplied and the market price will eventually fall.
b. Quantity demanded will exceed quantity supplied and the market price will eventually rise.
c. Quantity supplied will exceed quantity demanded and the market price will eventually fall.
d. Quantity supplied will exceed quantity demanded and the market price will eventually rise.
When a surplus exists in a market, we know that the actual price is:
Select one:
a. above equilibrium price, and quantity supplied is greater than quantity demanded.
b. above equilibrium price, and quantity demanded is greater than quantity supplied.
c. below equilibrium price, and quantity demanded is greater than quantity supplied.
d. below equilibrium price, and quantity supplied is greater than quantity demanded.
When the quantity supplied of a good exceeds the quantity demanded, there is a/an:
Select one:
a. shortage.
b. surplus.
c. equilibrium.
d. opportunity cost.
A shortage of a good occurs when:
Select one:
a. the quantity supplied equals the quantity demanded.
b. the quantity supplied is greater than the quantity demanded.
c. the quantity supplied is less than the quantity demanded.
d. supply does not exist.
An increase in demand causes a:
Select one:
a. temporary shortage at the old equilibrium price and a higher new equilibrium price and quantity.
b. permanent shortage, leaving the equilibrium price and quantity unchanged.
c. temporary surplus at the old equilibrium price and a lower equilibrium price and quantity.
d. temporary shortage at the old equilibrium price, a higher new equilibrium price, and a lower new equilibrium quantity.
Select one:
a. increase in the demand for wine, increasing price.
b. increase in the supply of wine, decreasing price.
c. decrease in the demand for wine, decreasing price.
d. decrease in the supply of wine, increasing price.
What can cause both equilibrium price and quantity to increase?
Select one:
a. an increase in the price of a complement good
b. a decrease in the population
c. consumer tastes becoming more favorable toward the good
d. an increase in the number of sellers
For most of human history, salt was a rare and valuable commodity that had to be either mined or extracted from the ocean through evaporation. This changed when modern chemistry allowed humans to produce it in factories. How did this development affect the market for salt?
Select one:
a. Demand increased, causing the price to rise.
b. Demand increased, causing the price to fall.
c. Supply increased, causing the price to rise.
d. Supply increased, causing the price to fall.
In free markets, surpluses lead to:
Select one:
a. lower prices.
b. higher prices.
c. stable prices.
d. unexploited gains from trade.
Which statement is TRUE about a recession?
Select one:
a. It can be concentrated only in a single geographic area, but it must be widespread across many sectors of the economy within that area.
b. It must be a significant decline in economic activity that lasts for at least three years in a row.
c. It is a significant decline in economic activity lasting more than a few months and must be widespread geographically.
d. It can be a significant and widespread decline lasting only a month or two.
A set of tires installed on a vehicle in an automobile factory is counted as:
Select one:
a. a final good and its market price is part of GDP.
b. a final good and its market price is not part of GDP.
c. an intermediate good and its market price is part of GDP.
d. an intermediate good and its market price is not part of GDP.
In the national spending approach, investment spending involves the acquisition of which of the following?
Select one:
a. capital goods
b. stocks and bonds
c. money
d. any of a number of financial instruments
GDP per capita is GDP divided by:
Select one:
a. population.
b. the price level.
c. the inflation rate.
d. the unemployment rate.
A tractor built in 2001 and still in operation today is:
Select one:
a. part of today's national wealth and GDP.
b. part of today's national wealth but not part of today's GDP.
c. part of today's GDP but not part of today's national wealth.
d. not part of today's national wealth nor today's GDP.
An expansion is a period of significant, widespread increases in:
Select one:
a. real income and employment.
b. real income and unemployment.
c. exports and imports.
d. inflation and unemployment.
Final goods are goods:
Select one:
a. used to produce other goods.
b. consumed or held in personal inventories.
c. used up in the production process.
d. that cannot be exported.
GDP:
Select one:
a. is a measure of national wealth.
b. measures the stock of assets, while national wealth measures production in a year.
c. measures production in a year, while national wealth measures a stock of assets.
d. is usually higher than national wealth.
Most economists prefer _____ as the best indicator of current economic performance.
Select one:
a. the GDP deflator
b. consumer spending
c. nominal GDP growth
d. real GDP growth
What are the components of the national spending approach to splitting GDP?
Select one:
a. consumption expenditures, transfer payments, and government investment
b. private investment, sale of new and used goods, net exports, and transfer payments
c. consumption, investment goods, government purchases, and net exports
d. wages, rent, interest, and profit
An increase in the price you pay for a haircut will:
Select one:
a. contribute to GDP as a purchase of a good.
b. contribute to GDP as a purchase of a service.
c. not contribute to GDP.
d. contribute to GDP only if your hair stylist is a U.S. citizen.
Increases in real GDP are considered the best measure of increases in living standards, because they measure:
Select one:
a. only increases in prices.
b. only increases in production.
c. both increases in prices and increases in production.
d. only increases in the cost of living.
In the national spending approach, net exports refers to:
Select one:
a. U.S purchases of imported goods only.
b. foreign purchases of exported goods only.
c. exports minus imports.
d. exports plus imports.
Suppose you spent $10,000 in 2010 remodeling your house, which you originally built for $200,000 in 2000. As a result, GDP in 2010 would:
Select one:
a. not change.
b. increase by $10,000.
c. increase by $200,000.
d. increase by $210,000.
What is the term for the value of a nation's entire stock of assets?
Select one:
a. gross domestic product
b. gross national product
c. national wealth
d. real gross domestic product
Which of the following would NOT be included in this year's GDP?
Select one:
a. Tom and Amy pay $75 for a meal in a restaurant.
b. Sarah pays her accountant $200 to do her taxes.
c. Jim mows his neighbor's lawn as a favor.
d. Megan buys a new Coach purse.
Business cycles are short-term movements in:
Select one:
a. real GDP around its long-term trend.
b. nominal GDP around its long-term trend.
c. the unemployment rate above and below zero.
d. inflation around its long-term trend.
Suppose a doctor spends half of the year in the United States and the other half in Canada and works in both places. How does his production get allocated between U.S. and Canadian GDP?
Select one:
a. Half of the doctor's income counts toward U.S. GDP and half toward Canadian GDP.
b. The full income is counted in the GDP of the country in which the doctor is a permanent resident.
c. The full income gets counted in both U.S. GDP and Canadian GDP.
d. The value of the services produced in the United States gets counted in U.S. GDP and the value of the services produced in Canada gets counted in Canadian GDP.
Which of the following is considered investment according to the national spending approach?
Select one:
a. depositing $1,000 into a savings account
b. buying $1,000 worth of stocks and bonds
c. spending $1,000 on college tuition
d. spending $1,000 on a new piece of farming equipment
How often is GDP reported for the U.S. economy?
Select one:
a. weekly
b. monthly
c. quarterly
d. annually
Explanation / Answer
1.
a. Zoey considers porcelain figurines to be a normal good.
because it has positive elasticity with the income
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.