ECON 130 Test + Exam || Questions and 100% Verified Answers.
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Course
ECON 130
Institution
ECON 130
PPC Shifters correct answers 1. Change in quality or quantity of resources.
2. Change in technology.
Equilibrium is the state that correct answers Where supply meets demand.
The system moves towards spontaneously.
Opportunity cost correct answers The next most desirable alternative give...
ECON 130 Test + Exam || Questions and 100% Verified
Answers.
PPC Shifters correct answers 1. Change in quality or quantity of resources.
2. Change in technology.
Equilibrium is the state that correct answers Where supply meets demand.
The system moves towards spontaneously.
Opportunity cost correct answers The next most desirable alternative given up to make a choice.
Market correct answers
Time is correct answers a scarce resource for everyone.
Utility correct answers
Capital correct answers refers to things that have already been produced that are in turn used to
produce other goods and services.
The long run is correct answers the time period where all inputs are variable
Fixed inputs correct answers Factors of production that cannot be increased or decreased in the
production process
are referred to as
Trade-offs correct answers All alternatives we give up to make a choice
Conventional (neo-classical) economic models correct answers Typically assume that individual
decision makers are rational
Consider the opportunity cost of a car. Its opportunity costs is determined by correct answers It's
relative price
Production efficiency occurs correct answers when a given mix of outputs is produced at the
least cost
The shape of the PPF is determined by correct answers Technology, which determines
opportunity costs
Positive Economics (descriptive) correct answers Focuses on facts and cause-effect behavioural
relationships
, Consider a tax system that aims to redistribute income from the rich to the poor by having tax
rates that rise with income. What best explains the goal of this tax system? correct answers
Equity
What is not an opportunity cost of attending university? correct answers The cost of the food that
you consume while attending uni
On an individual's indifference-curve diagram, the point of tangecy between the budget line and
an indifference curve indicates the combination of purchases where correct answers Utility is
maximised, subject to the budget constraint.
On an individual's indifference-curve diagram, a change in the slope of the budget constraint
indicates correct answers A change in relative prices
If a household's income and the prices of all goods it consumes doubles, its budget constraint
will correct answers be unaffected
The assumption of rational choice reflects the expectation that consumers correct answers make
choices that maximise their utility
Inferior Good correct answers A good whose quantity demanded decreases when consumer
income rises.
Income effect correct answers When the price goes up people buy less because they can't buy as
much because purchasing power decreases.
Substitution effect correct answers As prices rise - or income decreases - consumers will replace
more expensive items with less costly alternatives.
Relative Price correct answers A ratio between the price of one particular good and weighted
average of all other goods.
A backward-bending labour supply curve indicates that as the wage rises correct answers above a
certain wage fewer hours are supplied.
Firms are organisations that correct answers transform inputs into outputs
The money that the owner of a firm could earn if she worked for another firm is an example of
correct answers an opportunity cost
If a firm's inputs were doubled from their current level, the firm's output correct answers would
more than double
the production isoquant shows a set of efficient production techniques correct answers the
produce the same level of output
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