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Flashcards in Test 1 Agricultural Economics Deck (113)
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1

t/f the word equality means distributing society's resources in the most efficient manner

false

2

what is an example of a tradeoff

choosing not to attend a concert so that you can study for your exam

3

t/f efficiency means everyone i the economy should receive an equal share of goods and services

False

4

t/f equality refers to how the pie is divided and efficiency refers to the size of the economic pie

True

5

what would happen to accountants opportunity cost if their wages rose?

their opportunity cost would go up

6

what is market failure

a situation in which the market does not allocate resources efficiently

7

what do you normally give up when you increase equality?

efficiency

8

what is one way the government can improve market outcomes

ensure that individuals are able to own and exercise control over their scarce resources

9

how do rational people make decisions at the margin

by comparing marginal cost and marginal benefits

10

why would Olivia not factor in expense of applying when deciding between 2 schools

that expense has already been accounted for and is in the past

11

economists view normative statements as...

prescriptive, making a claim about how the world ought to be

12

what allows countries to consume outside their production frontier

trade

13

t/f opportunity cost refers to how many inputs a producer requires to produce a good

false

14

what can you not have in both goods if you already have the comparative advantage in a market

absolute advantage

15

self sufficiency

can only consume what one produces

16

what allows for gains in trade

the differences in opportunity cost `

17

t/f trade allows a person to obtain goods at prices that are less than that person's opportunity cost because each person specializes in the activity for which he or she has the lower opportunity cost

True

18

t/f if one producer is able o produce a good at a lower opportunity cost than some other producer, then the producers with the lower opportunity cost is said to have an absolute advantage in the production of that good

false

19

t/f international trade can make some individuals within a country worse off, even as it makes the country as a whole better

true

20

Formula for finding quantity opportunity cost

other good divided by asked about good

21

formula for finding time opportunity cost

asked about good divided by other good

22

in what kind of market are all goods offered for sale exactly the same

perfectly competitive

23

t/f all goods and services are sold in a perfectly competitive market

false

24

t/f a movement upward and to the left along a given demand curve is called a decrease in demand

false

25

t/f an increase in the price of pizza will shift the demand curve for pizza to the left

false (goes long demand curve)

26

t/f a decrease in the price of a complement will shift the demand curve for a good to the left

false

27

quantity supplied for sellers

the amount that sellers are willing and able to sell at a particular price

28

what does a decrease in supply do

shirts the supply curve to the left

29

t/f when a seller expects the price of its product to decrease in the future, the seller's supply curve shifts left now

false

30

t/f in a market the price of any good adjusts until quantity demanded equals quantity supplied

true