in a market-oriented economy, the amount of a good that is produced is primarily decided by the interaction of: correct answers Buyers and sellers
demand is said to be _____________ when the quantity demanded changes at the same proportion as the price correct answers Unit elastic
According t...
HCM 402 MIDTERM || with Errorless Solutions 100%.
in a market-oriented economy, the amount of a good that is produced is primarily decided by the
interaction of: correct answers Buyers and sellers
demand is said to be _____________ when the quantity demanded changes at the same
proportion as the price correct answers Unit elastic
According to the law of supply: correct answers There is a direct relationship between price and
quantity supplied
a change in price of a good or service typically causes ____________________ for the specific
good or service correct answers A change along the supply curve
If macroeconomics looks at the economy as a whole, it focuses on which of the following?
correct answers Unemployed people
Why is there scarcity? correct answers Because our unlimited wants exceed our limited resources
With regard to provision of health insurance in the United States, which of the following is
regarded as a way of addressing moral hazard and adverse selection problems? correct answers
greater government involvement
Which of the following will not result in a rightward shift of the market supply curve for labor?
correct answers An increase in labor productivity
The two main toys for macro economic policy include monetary policy and fiscal policy which
involves ________ spending correct answers government
Why has there been a shift away from the traditional fee-for-service structure in the US
healthcare? correct answers Reduces insensitives and moral hazard of added services to increase
income
because of their relatively Small national economy, which of the following is most likely
considered to be the most important factor for Belgium, Korea, in Canada to take full advantage
of specialization? correct answers International trade
Andy views beer and pizza as complements to one another. If the price of pizza decreases,
economists would expect: correct answers Andy's demand for beer to increase.
youth smoking seems to be more_______ than adult smoking - that is, The quantity of youth
smoking will fall by greater percentage then the quantity of adult smoking in response to a given
percentage increase in price. correct answers Elastic
A 10% decrease in the price of potato chips leads to 830% increase in the quantity a soda
demanded. It appears that: correct answers Cross price elasticity of demanded for soda is -3
, Why would a bank require a borrower to have collateral or cosigner before agreeing to learn
funds? correct answers Reduce his risk associated with imperfect information
When the level of insurance premiums that someone pays is equal to the amount than average
person in the risk group would collect an insurance payments, the level of insurance correct
answers reaches actuarial fairness
If the supply curve for product is vertical, in the elasticity of supply: correct answers Equal to
zero
which of the following will not result in a leftward shift of the market demand curve for labor?
correct answers an increase in the wage rate
When demand is inelastic: correct answers consumers are not very responsive to changes in
price.
Which of the following lies primarily within the realm of macroeconomics? correct answers A
study of how tax cuts stimulate aggregate production
supply said to be ___________ When the quantity supplied is very responsive to changes in
price. correct answers Elastic
__________ - A term referring to the fact that for many goods, as the level of production
increases, the average cost of producing each individual unit declines. correct answers economies
of scale
The demand For your product is unit elastic. At a price of $20, 10 units of a product or sold. If
the price is increased to $40, then one would expect sales to equal: correct answers five units
Macroeconomics primarily examines: correct answers broad issues such as national output,
employment and inflation.
The slope of the _________________ is determined by the relative price of the two goods, which
is calculated by taking the price of one good and dividing it by the price of the other good.
correct answers budget constraint
If the supply curve for housing is perfectly in elastic, then a reduction in demand will cause the
equilibrium price to: correct answers fall and the equilibrium quantity to stay the same
A perfectly elastic supply curve is: correct answers Horizontal
whenever there is a shortage at a particular price, the quantity sold at that price would equal:
correct answers The quantity supplied at that price
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