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Flashcards in economics 376-450 Deck (75):
1

true or false- a change in consumer incomes changes demand for a good

TRUE

2

the demand curve is the graphic representation of the demand.....

schedule

3

the price of the product A increases by 10% as a result the quantity demanded of a product B increases by 5%. what is the coefficient of cross-price elasticity between these two products?

0.5

4

if demand is unit-elastic then the price elasticity of demand is equal to

one

5

true or false a change in the number of consumers changes demand for a good

TRUE

6

ticket prices go up at lakers games and overall ticket revenue decreases at the staples center this meeands that demand in this price range is

elastic

7

goods and services that are purchased together are called

complements

8

true or false a change in consumer tastes and preferances changed demand

TRUE

9

elasticity of demand is generally highly (objective/negative)

subjective

10

substitutes have a (positive/negative) cross price elastiticity

positive

11

the price of a producte changes 10% as a result the quanitity demand changes by 25% what is the price elasticity of demand?

2.5

12

if demand is inelastic, what does this mean for the price elasticity of demand

the price elasticity of demand is less than one

13

goods and services that satisfy the same want are called

subsititutes

14

what is marginal costs

the cost of the next unit of production

15

what is the term of the restriction that income places on quanitity demanded

the budget constraint

16

elasticity is the relationship between the change in and the change in quantity demand or supplied

price

17

what is the measure of the responsiveness f demand to consumer income

income elasticity of demand

18

in a graph of supply and demand, what does the horizontal axis represent

quanitity

19

What does price elasticity of demand tell us?

Price elasticity of demand tells us how much quantity demanded will be affected by a change in price.

20

If the price of one good rises, what happens to the demand for its complementary good?

Demand for a complement will increase.

21

Pens and pencils are substitutes. The price of pens decreases? what happens to the equilibrium price of pencils?

decreases, because demand for pencils decreases

22

Demand decreases and supply increases. What happens to equilibrium quantity?

the change is indeterminate.

23

Demand decreases and supply decreases. What happens to equilibrium quantity?

decreases

24

Demand decreases and supply decreases. What happens to equilibrium price?

The change is indeterminate.

25

Supply decreases. What happens to equilibrium quantity?

increases

26

Supply increases. What happens to equilibrium price?

decreases

27

Name some factors that can change supply.

changes in technology, change in the number of suppliers, change in the cost of inputs, and change in expectations of future price changes

28

Technology for producing remote controls improves. The supply of remote controls (increases/decreases/stays the same).

increases

29

Investment represents about __% of GDP in the United States.

15

30

How much was U.S. per capita GDP in 1998?

$31,487

31

Randy decides to leave his job in New York and travel to Morocco, then back to California, where he is looking for a new job. What kind of unemployment is this?

frictional

32

Define the labor force.

Every civilian age 16 or older who has a job or is seeking one. Military personnel and convicts do not count

33

What is the Labor Force Participation rate?

The percentage of the civilian population i the labor force out of everyone who could be in the labor force.

34

What government agency keeps track of unemployment data?

the Bureau of Labor Statistics

35

The Employment Act of 1946 most targeted what kind of unemployment?

cyclical unemployment

36

When did the Employment Act of 1946 expire?

2000

37

About what percentage of workers earning the federal minimum wage are 20 or older?

75%

38

How many times more likely is someone who has not gone to college to earn the minimum wage than someone who has graduated from college?

twice as likely

39

What government agency measures the Consumer Price Index?

the Bureau of Labor Statistics

40

What was the average inflation rate in 2004?

2.68%

41

True or false: full employment is 0% unemployment.

False-- for instance, there is always a certain degree of frictional unemployment.

42

What is bullion?

precious metal

43

What are three common types of unemployment?

frictional, structural, and cyclical

44

How are the fundamental economic questions answered in a traditional economic system?

with tradition and history

45

At what percent unemployment is an economy said to be at "full employment"?

4%

46

What is a "discouraged worker"?

someone who has given up looking for work

47

For an individual to be considered unemployed, does he have to be trying to find a job?

yes

48

Who wrote The Communist Manifesto?

Karl Marx

49

What is structural unemployment?

unemployment that occurs when the economy (usually due to technology) changes in such a way as to decrease demand for certain skills

50

What is cyclical unemployment?

unemployment associated with fluctuations in the business cycle

51

What is the labor force?

all civilians 16 and over who have a job or are seeking one and capable of holding one--thus, for instance, not mentally disabled are part of the labor force

52

What is underemployment?

Being employed at a lower level than education and training suggest would be optimal -- for instance, an engineer working to sell ice cream because of a decline in the availability of engineering jobs

53

Advertising to give your product name recognition and a unique reputation is known as _______.

branding

54

investment is sometimes called___ formation

capital

55

education and training are examples of investments in ___ capital

human

56

workers are what type of capital

human capital

57

what term refers to a wage rate based on worker output

productivity adjusted wage

58

give an example of investment in human capital

training, education, hiring new labor, increasing wages and health benefits technology that helps workers improve effiency

59

net investments is the value of the total investment minus

depreciation

60

true or false, the largest and most steady increase in real wages occurred after the industrial revolution

TRUE

61

beginning with he peak, list the four major phrases of the business cycle

peak, precession, trough, expansion

62

why does aggregate demand increase if more income is distributed to lower income families and less income to higher income families

lower income families spend a great percentage of their incomes on consumption

63

did the median income of households in 1999 increase in every racial group

yes

64

new orders odor capital goods are ____ economic indicator

leading

65

government spendings represents about __% of GDP in the US

20

66

what is an intermediate good

a good that is made rom a resource for use in the production of a final good

67

in which range is the aggregate supply curve nearly vertical

classical

68

in which range is the shape of the aggregate supply curve similar to that of the supply curve of a single good

intermediate

69

list three fundamental economic questions

1. What to produce (and in what quantity)?2. How to produce?3. Who will receive the benefits of production?

70

what is a transfer payment from the government

a transfer of funds in which an individual might gain wealth, but nothing has been produced

71

labor cost per unit of output is a (leading/concurrent/lagging) economic indicator

lagging

72

what is the measure of the output of a nation's permanent residents, regardless of where they produce

gross national product

73

what is real gross domestic product

nominal GDP, adjusted for inflation

74

which racial group made the lowest median household income in the us in 1999

blacks

75

barbara eckler and amy brown and american citizens who live and own a smoothie bar in mexico city. is their income part of US gap? how about gnp?

no, yes