Term
| Which of the following would most likely serve as an example of a monopoly? |
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Definition
| A local cable television company |
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Term
| If the price of apple pies rose to $10 per pie, consumers would purchase fewer than if the price were $5 per pie. If the price of ice cream fell to $0.30 per scoop, consumers would purchase more ice cream than if the price were $0.50 per scoop. These relationships illustrate the |
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Definition
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Term
| Workers at a bicycle assembly plant currently earn the mandatory minimum wage. If the federal government increases the minimum wage by $1.00 per hour, then its likely that the |
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Definition
| Supply of bicycle assembly will shift to the left |
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Term
| Because bagels and cream cheese are often eaten together, they are complements. During 2009, the following two things happen: the price of flour falls, and the price of milk also falls. WHat effect do these have on the bagel and cheese markets |
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Definition
| Bagel- positive supply shock, cream cheese- positive supply shock |
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Term
| At the end of 2009, market research shows that the equilibrium price of cream cheese and the equilibrium quantity of bagels have risen. This could be because |
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Definition
| cheaper bagels generated a demand shock for the cream cheese market |
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Term
| Gross domestic product adds together many different kinds of goods and services into a single measure of the value of economic activity. To do this, GDP makes use of |
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Definition
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Term
| Ralph pays someone to mow his lawn, while Mike mows his own lawn. Regarding these two practices, which of the following statements is correct? |
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Definition
| Only Ralph's payments are included in GDP |
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Term
| Ryan lives in an apartment where he pays $7,000 a year in rent. Alexis lives in a house that could be rented for $14,000 a year. How much do these housing services contribute to GDP? |
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Definition
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Term
| Over the last few decades, Americans have chosen to cook less at home and eat more at restaurants. This change in behavior, by itself, has |
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Definition
| increased measured GDP by the value of the restaurant meals |
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Term
| Rachel babysits for her sister for no pay. When she babysits for a day-care center she receives $8 an hour. When is Rachel's babysitting included in the GDP |
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Definition
| When she babysits for the day-care center, not when she babysits for her sister |
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Term
| A painter pays $500 for paint he uses to repaint a house. He then presents a bill for $1200 that covers his time and expenses to the homeowner. How much do these transactions add to GDP? |
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Definition
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Term
| In the economy of Ukzten in 2010, exports were $500, GDP was $6400, government purchases were $1500, imports were $600, and investments was $2000. What was the countries consumption in 2010? |
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Definition
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Term
| A farmer sells $50,000 of apples to individuals who take them eat and $75,000 of apples to a company that uses them all to produce cider. How much of the farmers sales will be included as apples in GDP? |
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Definition
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Term
| In computing the consumer price index, a base year is chosen. Which of the following statements about the base year is correct? |
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Definition
| The value of the consumer price index is always 100 in the base year. |
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Term
| Suppose a basket of goods and services has been selected to calculate the CPI and 2002 has been selected as the base year. IN 2002, the baskets cost was $50; in 2004, the baskets cost was $52; and in 2006, the baskets cost was $54.60. The value of the CPI in 2004 was |
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Definition
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Term
| Suppose the price index was 110 in 2004, 120 in 2005, and 125 in 2006. Which of the following statements is correct? |
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Definition
| The economy experienced inflation between 2004 and 2005 and between 2005 and 2006 |
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Term
| Assume the consumers consider rice and potatoes to be substitutes, so that when the price of rice rises, consumers purchase less rice and more potatoes. When the CPI is computed following the increase in the price of rice, it takes into account |
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Definition
| the increase in the price of rice |
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Term
| Ms. LAne borrowed $1,000 from her bank for one year at an interest rate of 10 percent. During that year, the price level went up by 15 percent. Which of the following statements is correct? |
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Definition
| Ms. Lane's repayment will give the bank less purchasing power than it originally loaned her. |
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