Save
Upgrade to remove ads
Busy. Please wait.
Log in with Clever
or
show password
Forgot Password?
Don't have an account?  Sign up 
Sign up using Clever
or
Username is available taken
show password


Make sure to remember your password. If you forget it there is no way for StudyStack to send you a reset link. You would need to create a new account. Your email address is only used to allow you to reset your password. See our Privacy Policy and Terms of Service.

Already a StudyStack user? Log In

Reset Password
Enter the associated with your account, and we'll email you a link to reset your password.
focusNode
Didn't know it?
click below
 
Knew it?
click below
Don't Know
Remaining cards (0)
Know
0:00
edit
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.

  Normal Size     Small Size show me how

Stack #686172

QuestionAnswer
Price, which is determined by all buyers and sellers as they interact in the marketplace, allocates the economy’s scarce resources. True
2. A market is a group of buyers and sellers of a particular product. True
3. In a perfectly competitive market, buyers and sellers are price setters. False
4. If a good or service has only one seller, it is called an oligopoly. False
5. The computer software industry is an example of monopolistic competition. True
6. A local cable TV company might be a monopolist. True
The quantity demanded of a product is the amount that buyers are willing and able to purchase at a particular price. True
The law of demand states that the quantity demanded of a product is positively related to price. False
The market demand is the average of all of the individual demands for a particular good or service. False
9. If the demand for a good falls when income falls, the good is called an inferior good. False
10. When an increase in the price of one good lowers the demand for another good, the two goods are called complements. True
11. Baseballs and baseball bats are substitute goods. False
12. An increase in the price of pizza will shift the demand curve for pizza to the left. False
14. Whenever a determinant of demand other than price changes, the demand curve shifts. True
15. A reduction in the price of a product and an increase in the number of buyers in the market affect the demand curve in the same general way. False
16. The quantity supplied of a good or service is the amount that sellers are willing and able to sell at a particular price. True
17. The law of supply states that other things equal, when the price of a good rises, the quantity supplied of the good falls. False
18. If a company making frozen orange juice expects the price of their product to be higher next month, they will supply more to the market this month. False
A supply curve slopes upward because, all else equal, a higher price means a greater quantity supplied. True
20. A movement along a supply curve is called a change in supply while a shift of the curve is called a change in quantity supplied. False
21. If there is an improvement in the technology of producing a product, the supply curve for that product will shift to the left. False
22. A reduction in an input price will cause a change in quantity supplied, but not a change in supply. False
23. Quantity demanded is equal to quantity supplied, at the equilibriumprice True
24. Surpluses drive price up while shortages drive price down. False
25. A shortage will occur at any price below equilibrium price and a surplus will occur at any price above equilibrium price. True
It is not possible for demand and supply to shift at the same time. False
In a market, the price of any good adjusts until quantity demanded equals quantity supplied. True
The behavior of buyers and sellers drives markets toward equilibrium. True
2. Necessities tend to have price inelastic demands, whereas luxuries have price elastic demands. True
3. Goods with close substitutes tend to have more elastic demands than do goods without close substitutes. True
4. The demand for Rice Krispies is more elastic than the demand for cereal. True
5. The demand for gasoline will respond more to a change in price over a period of five weeks than over a period of five years False
6. The price elasticity of demand is defined as the percentage change in quantity demanded divided by the percentage change in price. True
7. The price of calculators increases by 15 percent and the quantity demanded per week falls by 45 percent. The price elasticity of demand is 3. True
1. Demand for a good is said to be inelastic if the quantity demanded increases substantially when the price falls by a small amount. False
8. Demand is inelastic if the elasticity is greater than 1. False
9. If the price elasticity of demand is equal to 0, demand is unit elastic. False
11. The flatter the demand curve that passes through a given point, the more inelastic the demand. False
12. If demand is perfectly inelastic, the demand curve is vertical, and elasticity is equal to 0. True
Price elasticity of supply measures how much the quantity supplied responds to changes in the price. True
21. Supply is said to be inelastic if the quantity supplied responds substantially to changes in the price, and elastic if the quantity supplied responds only slightly to price. False
22. Supply tends to be more elastic in the short run and more inelastic in the long run. False
23. When the price of knee braces increased by 25 percent, the Brace Yourself Company increased their quantity supplied of knee braces per week by 75 percent. BYC’s price elasticity of supply of knee braces is 0.33. False
24. If a supply curve is horizontal it is said to be perfectly elastic and the price elasticity of supply approaches infinity True
1. Scarcity means that there is less of a good or resource available than people wish to have. True
2. Economics is the study of how fairly goods and services are distributed within society. False
3. With careful planning, we can usually get something that we like without having to give up something else that we like. False
5. Equity refers to how the pie is divided, and efficiency refers to the size of the economic pie. True
6. Tuition is the single-largest cost of attending college for most students. False
7. The cost of an action is measured in terms of foregone opportunities. True
8. A marginal change is a small incremental adjustment to an existing plan of action. True
10. A rational decisionmaker takes an action if and only if the marginal cost exceeds the marginal benefit. False
13. A market economy cannot produce a socially desirable outcome because individuals are motivated by their own selfish interests. False
14. The government can potentially improve market outcomes if market inequalities or market failure exists. true
15. Market failure refers to a situation in which the market does not allocate resources efficiently. True
17. Productivity is defined as the quantity of goods and services produced from each hour of a worker’s time. True
18. Productivity is the primary determinant of a country‘s living standards. True
Created by: Mets3172
 

 



Voices

Use these flashcards to help memorize information. Look at the large card and try to recall what is on the other side. Then click the card to flip it. If you knew the answer, click the green Know box. Otherwise, click the red Don't know box.

When you've placed seven or more cards in the Don't know box, click "retry" to try those cards again.

If you've accidentally put the card in the wrong box, just click on the card to take it out of the box.

You can also use your keyboard to move the cards as follows:

If you are logged in to your account, this website will remember which cards you know and don't know so that they are in the same box the next time you log in.

When you need a break, try one of the other activities listed below the flashcards like Matching, Snowman, or Hungry Bug. Although it may feel like you're playing a game, your brain is still making more connections with the information to help you out.

To see how well you know the information, try the Quiz or Test activity.

Pass complete!
"Know" box contains:
Time elapsed:
Retries:
restart all cards