Econ final

the opportunity cost of a new public high school is the

other goods and services that must be given up for the new school

which one of the following do economists consider to be an example of capital goods

machines in an auto plant

what is meant by the statement that every economic system faces the problem of scarcity

there are never enough productive resources to satisfy all human wants

from an economic point of view, which approach to controlling pollution is most efficient

reduce pollution as long as the additional benefits are greater than the additional costs

the essential difference between a command economy and a market economy is that a market economy

buyers and sellers determine resource allocation

which is a basic economic question that must be answered by all economic systems

how will goods and services be produced

profits are equal to total

revenue minus total cost

if the government decides to reduce the payroll taxes on the wages and salaries of workers, then there will most likely be

an increase in consumption

a high school student buys a sweatshirt from a store. the sweatshirt is on sale at a 20% discount off the regular price. in this exchange

the student and the store benefit

if Nation A adopts public policies that restrict imports form another national that is a major trading partner, then in Nation A

consumers will pay higher prices for products

specialization and division of labor by nations followed by increasing international trade probably would

increase total world production of goods and services

if Britain has a comparative advantage over France in the production of cars, then

the opportunity cost of producing cars in Britain is lower than in France

when there is a shortage of a product in a competitive market, it is usually the case that the

market price of the product will eventually increase

the exchange rate between he US dollar and the euro changes form $1\=1.5 euros to $1\=1.25 euros. Germany uses the euro as its currency. this change means that

German goods will be more expensive for Americans

in a competitive market, the price of a product is $5. if the government passes a law that sets a minimum price pf the product at $6 this change will most likely result in

a surplus of the product

which would most likely increase the quantity of gasoline sold in the competitive market

a decrease in the price of automobiles

in a competitive market, the price of wheat is likely to be increased by

a decrease in the supply of wheat

business firms wish to sell their products a high prices households wish to buy products at low prices. in a market economy, this conflict of interest is resolved by

competition

a newspaper reports, "COFFEE GROWERS' MONOPOLY BROKEN INTO SEVERAL COMPETING FIRMS." if this is true, we would expect the coffee growing industry to

increase output and decrease prices

in a market economy, the public interest is likely to be served even when individuals pursue their personal economic goals because of

the operation of competitive markets

which characteristic makes the most positive contribution to people's incentive to produce and exchange goods and services in a market economy

The right to own private property

common stocks, limited liability, and unlimited life are basic characteristics of

corporations

what primary function is money serving when it is used to buy a ticket to a movie

medium of exchange

when commercial banks increase their loans to businesses and consumers, this usually results in

an increase in the nation's money supply

inflation is an increase in

the general level of prices over time

an increase in real interest rates provides an incentive for people to save

more and borrow less

which would likely increase the average level of interest rates of auto loans

an increase in inflation

over time the economic condition that would most likely lead to an increase in worker wages is an increase in

the demand for the product that is made by the workers

why do medical doctors generally earn more than farmers

medical doctors are scarcer, given the demand for their services

a basic role of entrepreneurs in the economy is to

take the risks associated with starting new businesses

which would most likely increase the productivity of labor

an increase in capital investment

how does a nation typically acquire more capital goods and increase productivity

by increasing private saving and business investment

government rather than private business provides national defense because

not all who benefit from it would pay for it

the tax described in the table above is a

progressive income tax

which statement about tariffs is true

tariffs benefit some groups at the expense of others

gross domestic product (GDP) is a measure of

the market value of the nation's output of final goods and services

a nation has an international trade deficit when

its imports are greater than its exports

which best measures a nation's standard of living over time

real income per capita

an economy's potential output at any time is limited by

the quantity and quality of labor, capital, and natural resources

which would usually reduce total spending in the economy

a decline in consumer incomes

an economy will typically experience a decline in its unemployment rate when there is

an increase in economic growth

if your annual income rises by 50% while prices of the things you buy rise by 100%, then your

real income has fallen

one reason the federal government might reduce taxes is to

increase consumer spending and stimulate the economy

a government budget deficit exists when

government spending is greater than tax revenues

which monetary policy would the Federal Reserve most likely adopt as the economy moves into recession during a period of low inflation

lower the federal funds rate