PEQs Flashcards
(127 cards)
Which will cause a movement along the demand curve for good X?
A change in the price of good X
Consider the market for chicken. An increase of the price of beef will…
Increase the demand of chicken
- Higher price of chicken
- Higher chicken purchases
On a production possibilities curve, a change from economic inefficiency to economic efficiency is obtained by…
Movement from one point inside the curve to a point on the curve
A public good may be defined as any good or service that…
Must be distributed to all citizens in equal shares
If an increase in bus fares in London reduces the total revenue of the public transit system, this is evidence that demand is…
Elastic
If a 5% reduction in the price of a good produces 3% increase in quantity demanded, the price elasticity of demand over this range of the demand curve is…
Inelastic
The income elasticity of demand for grapes is estimated to be 1.50.
We can conclude that grapes are…
A normal good
The change in quantity demanded resulting from a change in purchasing power is known as the…
Income effect
- Suppose a milking parlour has 2 milking stalls and 2 workers.
- It is able to milk 100 cows each day.
- When it adds a third stall with no extra workers, it is able to milk 150 cows per day.
- The marginal product of the third milking stall is…
50 cows per day
If both the marginal cost and average variable cost curves are U-shaped, at the point of minimum average variable cost, the marginal cost must be…
Equal to the average variable cost
Implicit costs are the opportunity costs of using the resources of…
Owners
Explicit costs are payments to…
Non-owners of a firm
Which statement is true for global milk consumption in the last 5 years?
Slightly increasing
Which asset has the highest average value on a dairy farm?
Livestock
Which asset has the lowest average value in a dairy farm?
Fodder reserve
Which of the large beef producer regions is not free of FMD?
- EU
- South-America
- Asia
Which country is the top beef producer in the EU?
France
Which cost has the largest share in the total cost for broilers?
Feed
When does scarcity exist?
When people consume beyond their needs
Economics is the study of…
People making choices
Ceteris paribus means…
Other relevant factors like consumer incomes must be held constant
Give an example of a pair of factors exhibiting a direct relationship
- The price of gasoline
- Amount of gasoline purchased
Opportunity cost is the cost…
Best option given as a result of choosing an alternative
Milk equivilant
The amount of milk used for producing a specific dairy product