econ questions and answers 2022

which is an example of a question economics aims to answer (based on the definition of economics)? how will an economic agent use their scarce resources to maximize utility? which of the following statements correctly refers to the opportunity cost of a decision? alan decided to purchase the generic cereal instead of the name brand 01:13 01:29 determine whether the following statement best illustrates microeconomics or macroeconomics .. the new car industry is experiencing booming sales microeconomics determine whether the following statement best illustrates positive or normative economics? the price of fresh fruits and vegetables is too high normative societys economic problem is a result of scare resources which of the following is not an economic resource? money Allison wants to open a bakery but the government prohibits her from doing so command system goods and services produced are determined in markets market system other wise known as socialism command system which option best describes, technology and capital goods, a characteristic of a market system? NOT the factors of production are owned by private individuals and households determine whether the following statement is true or false. money causes increases in transaction cost in markets false assume society has decided on a market system. who will get the out put? economic agents with the greatest willingness and the ability to purchase the output which of the following was a reason the command system has not been successful historically? governments received profits and benefits of production answer the following question based on the economic agents in the circular flow diagram. Which economic agent owns the capital? households answer the following question based on markets in the circular flow diagram. which market determines the wage of autoworkers resource market determine whether the following statement best illustrates mirco or macro. new tariffs in china have caused a reduction in U.S. GDP. Macroeconomics determine whether the following statement best illustrates positive or normative economics. the tax on gasoline should be lower normative society's economic problem is a result of: scarce factors of production which of the following is not an economic resource? money goods and services consumed are determined by a central planner. command system otherwise known as socialism command system which option best describes, markets and prices, a characteristic of a market system the information mechanism for the system that provides feedback between buyers and sellers determine whether the following statement is true or false. entrepreneurs are free to use economic resources in the most profitable manner true assume society has decided on a market system. how will the system accommodate change? the system accommodates change by information gathered in the market which of the following was a reason the command system has not been successful historically? persistent shortages and surpluses based on the economic agents in the circular flow diagram. which economic agent is a supplier of goods and services firms answer the following question based on markets in the circular flow diagram. which market determines the wage of auto workers? resource market in the resource market businesses are the demanders in a competitive market, which of the following is an assumption that is made? goods for sale are the same the law of demand states as price increases quantity demanded decreases the law of demand states that price and quantity have an inverse relationship graphically, an equilibrium can be found where the intersection of the demand and supply curves in the market for shampoo. an increase in the number of citizens causes increased purchases of most necessities the effect of the event will be an INCREASE in DEMAND As a result, the equilibrium price will INCREASE and the equilibrium quantity will INCREASE in the market for luxury cars. incomes in the united states decrease. this effect of the event will be a DECREASE in DEMAND As a result, the equilibrium price will DECREASE and the quantity will decrease in the market for hamburger buns. the price of hamburgers increases the effect of the event will be a DECREASE in DEMAND As a result, the equilibrium price will DECREASE and the equilibrium quantity will DECREASE in the market for windows. the price of glass has increased the effect of the event will be a DECREASE in SUPPLY as a result the equilibrium price will INCREASE and the equilibrium quantity will DECREASE in the market for paint. there was a decrease in number of paint producers the effect of the event will be a DECREASE in SUPPLY as a result the equilibrium price will INCREASE and the equilibrium quantity will DECREASE in the market for beef. bossinesses are receive a reduced subsidy on production of beef the effect of the event will be a DECREASE in SUPPLY as a result the equilibrium price will INCREASE and the equilibrium quantity will DECREASE the market for retail space. a natural disaster has destroyed many of the retail locations in the city the effect of the event will be a DECREASE in SUPPLY as a result the equilibrium price will INCREASE and the equilibrium quantity will DECREASE in the market for agricultural land. immigration causes an increase in the amount of fresh produced demanded the effect of the event will be a INCREASE in DEMAND as a result the equilibrium price will INCREASE and the equilibrium quantity will INCREASE In the resource market businesses are the demanders in a competitive market which of the following is an assumption that is made many buyers and sellers determine whether the following expenses is explicit or implicit. a firm makes a rent payment to a landlord for a retail space explicit cost many firms experience economies of scale when increasing output. why does increasing returns to scale occurs? capital usage improves, advertising expenses increase, research and development cost increase, workers are able to specialize in specific tasks in the long run, if firms are earning zero economic profit the market is in long run equilibrium firm a is one of many firms in the industry but consumers differenciate products based on various attributes monopolistically competitive firm b is able to charge a premium price based on their customer service reputation monopolistically competitve firm c offers a product that is faster than their competitors allowing them to charge a higher price monopolistically competitive the industry is classified as having many firms. is it possible this maket is an oligopoly no one firm produces a good with no substitues. is it possible this market is an oligopoly no legal restriction on the market prevent new firms from entering, is it possible the market is an oligopoly yes determine whether the following is explicit or implicit. the firm operates out of a building on a busy street. another firm offers the company $5000 to rent the location implicit costs an industry is said to be in the long-run when there are no more fixed resources perfectly competitive many sellers, price taker, similar or the same product, no barriers to entry monopolistically competitive market many sellers, limited control over price, differentiated product, no barriers to entry oligopoly few large sellers, price is influenced by others in the market, similar or differentiated product, significant barriers to entry pure monopoly one single seller, complete ability to set prices, no close substitutes, significant barriers to entry which of the following would be included in GDP andy has a monthly membership at a local gym determine whether the following transaction is included in gdp. a soda manufacturer purchases aluminum to make cans. NOT YES If a household builds a new home it is included in GDP under investment the government pays out more unemployment benefits during a recession no a bussiness cycle refers to short run fluctuation in real GDP determine whether the following individual is considered part of the labor force. jim has been out of work for the 3 weeks and has been actively looking for new employment yes which of the following would not be included in gdp? molly pays norb for weekly care of her year. determine whether the following transaction is included in GDP . a car manufacturer purchases engines no determine whether the following transaction is included (will increase) gdp in the united states. a us citizen decides to produce clothing in france no