ECON 110 Read & Interact Schiller & Gephardt Chapter 3 solutions complete answers

ECON 110 Read & Interact Schiller & Gephardt Chapter 3 solutions complete answers 

 

_______ outcomes are the best possible, given the level and distribution of incomes and scarce resources.

 

The term "laissez faire" refers to:

 

If the government controls the market with a binding price floor, the equilibrium market price would be ______ the floor and a _____ will result.

 

Choose the characteristics that best describe the concept of laissez faire.

 

Which of the following causes shortages or surpluses, distortions in resource allocation, and negative side effects?

 

When a price ceiling is enacted, the new price is established ______ the equilibrium price, quantity demanded ______, and quantity supplied ______, thus creating disequilibrium.

 

If the supply of corn increases (holding demand constant), the equilibrium price of corn will ______ and the quantity will ______.

 

Price controls or ______ mandated in the apartment rental market benefit the consumer by establishing a price ______ the free-market equilibrium price.

 

Price ceilings have three predictable effects. They:

 

______ in supply while holding demand constant results in an increase in equilibrium price but a decrease in equilibrium quantity.

 

Which of the following consistently illustrate the effects on equilibrium price and quantity as a result of different changes in supply and demand? (Select all that apply.)

 

Which of the following best describes why a surplus will not persist for very long?

 

If the price of tutoring is $30 per hour, there is a market _______ equal to approximately _______ hours.

 

If the market price is above equilibrium, a(n) _______ exists and there will be downward pressure on the price until it reaches equilibrium.

 

Equilibrium price is determined by the collective behavior of many buyers and sellers acting out their own demand or supply schedule. Adam Smith's characterization of the market mechanism is known as:

 

The equilibrium price and quantity reflect a compromise between buyers and sellers where quantity demanded _______ the quantity supplied.

 

Which of the following would result in a change in supply?

 

Which curve is an expression of sellers' intentions, of the ability and willingness to sell, not a statement of actual sales?

 

If producers expect lower future prices for their goods or services, these expectations impact their _______ and will impact the _______ curve.

 

If the government taxes the production of a good, it in effect ______ the producers' costs and ______ supply.

 

_______ is the total quantities of a good or service that people are willing and able to buy at alternative prices in a given time period.

 

The total quantities of a good or service that people are willing and able to buy at alternative prices in a given time period is

 

_______ is the total quantities of a good that sellers are collectively willing and able to sell at alternative prices in a given time period, ceteris paribus.

 

Other things equal, if consumers believe that the price of gas will fall tomorrow, the demand for gas today will likely ______.

 

If prices for houses are expected to increase in the future, demand for houses will ______ today. If house prices are expected to decrease in the future, demand will ______ today.

 

of demand are a variety of forces that impact a consumer's willingness and ability to pay for goods and services.

 

 (one word) is an expression of consumer buying intentions, of a willingness to buy, not a statement of actual purchases.

 

A table showing the quantities of a good that a consumer is willing and able to buy at alternative prices in a given time period, ceteris paribus, is a   schedule.

 

A table showing the quantities of a good that a consumer is willing and able to buy at alternative prices in a given time period, ceteris paribus, is a:

 

(one word) is an expression of consumer buying intentions, of a willingness to buy, not a statement of actual purchases.

 

Suppose you were capable of growing your own food, stitching your own clothes, building your own shelter, and even writing your own economics text. How should you expend your limited time and energy?

 

The goal of consumers is to maximize:

 

The idea that the economy does not have enough resources to produce all the goods and services wanted is the idea of:

 

A       is an institution, place, or mechanism that brings buyers and sellers into contact to buy and sell goods and services.

 

From an economic perspective, which of the following are true of a market?

 

      occurs in situations where we can, but choose not to, produce everything we need or desire.

 

The goal of business is to maximize:

 

The fact that you do not have enough income to buy all the goods and services you want is the idea of:

 

Which of the following is not a key market participant in the U.S. economy?

 

Which of the following represents any place where goods and services are bought and sold?

 

When modeling market interactions,

 

Specialization is about an individual or firm using available resources to:

 

Any place where factors of production (e.g., land, labor, capital, entrepreneurship) are bought and sold is a       market.

 

The goal of government is to maximize:

 

Both land and labor would be bought and sold in the ______ market.

 

Which of the following are markets or market participants?

 

Any place where finished goods and services are bought and sold is known as a:

 

Any place where factors of production (e.g., land, labor, capital, and entrepreneurship) are bought and sold is a

 

Which of the following are examples of a market?

 

Cell phones and doughnuts would be most likely bought and sold in the ______ market.

 

Nearly every market transaction involves an exchange of       for goods (in product markets) or resources (in factor markets).

 

A product market is any place where _______ and ______ are bought and sold.

 

The ability and willingness to sell specific quantities of a good at alternative prices in a given time period, ceteris paribus, is the definition of      .

 

Elements of       and       are involved in every market transaction.

 

Demand only exists if someone is:

 

Which of the following illustrate a market?

 

Nearly every market transaction involves an exchange of _______ for goods (in product markets) or resources (in factor markets).

 

Due to scarce resources, every individual, whether rich or poor, is faced with a(n)       cost when choosing to produce or consume more of one good over another.

 

The ability and willingness to buy specific quantities of a good at alternative prices in a given time period ceteris paribus is the definition of      . (Enter one word in the blank.)

 

A table showing the quantities of a good a consumer is willing and able to buy at alternative prices in a given time period, ceteris paribus, is a       schedule.

 

Every market transaction involves elements of:

 

Demand is an expression of consumer buying      .

 

      (one word) is an expression of consumer buying intentions, of a willingness to buy, not a statement of actual purchases

 

A demand schedule illustrates the relationship between price and quantity in a ______ format, whereas the demand curve is a ______ representation.

 

The highest-valued alternative that is given up or sacrificed when choosing to produce or consume one good over another is referred to as ______.

 

Other things equal, the amount of a product that a consumer would be willing to purchase at various possible prices is shown by the:

 

A table showing the quantities of a good a consumer is willing and able to buy at alternative prices in a given time period, ceteris paribus, is a:

 

Because quantity demanded falls as price _______, the demand curve can be shown graphically by a downward sloping curve.

 

Demand is based on:

 

In the supply and demand model, quantity demanded is illustrated on the       axis and price is illustrated on the       axis.

 

A demand       organizes the relationship between price and quantity in a tabular format, whereas the demand       is a graphical representation of this relationship.

 

      of demand are a variety of forces that impact a consumers willingness and ability to pay for goods and services.

 

The number of buyers is a determinant of market      .

 

The demand curve shows the plotted:

 

The "ceteris paribus" in the relationship between price and quantity demanded are called the:

 

The fundamental characteristic of demand, other things equal, is that as price falls, the quantity demanded for a product      . (Enter only one word in the blank.)

 

Which of the following define ceteris paribus?

 

A demand curve measures quantity _____ on the horizontal axis and _____ on the vertical axis.

 

Changes in the determinants of demand will cause:

 

The determinants of demand for a good are factors or variables, other than the ______, that affect consumption or buyers' decisions to purchase and consume.

 

Which of the following are determinants of demand?

 

The "ceteris paribus" assumption is important to the law of demand because:

 

Consider the relationship between the price of gas and the quantity of gas consumed by drivers. If we are to consider the price of gas as the only factor affecting the quantity of gas consumed, while holding other factors such as drivers' incomes and tastes and preferences irrelevant, then we are invoking:

 

If prices for heating oil are expected to increase in the future, demand for heating oil will ______ today. If prices are expected to decrease in the future, demand will ______ today.

 

The demand curve can shift       or       when a factor other than price affects consumption of a good or service.

 

If people now prefer to drive electric cars, the

 

Other things equal, if consumers believe that gas prices will rise in a week, the demand for gas today will ______.

 

Which of the following is a determinant of demand?

 

When the price of Coke rises, the demand for Pepsi is likely to ______.

 

Demand will decrease (for a normal good) if there is:

 

Which of the following illustrates a simple change in quantity demanded?

 

Which of the following exemplifies a change in buyers' tastes?

 

If prices for houses are expected to increase in the future, demand for houses will ______ today. If prices are expected to decrease in the future, demand will ______ today.

 

A _____ the demand curve represents a change in demand, while a _____ the demand curve represents a change in quantity demanded.

 

A change in quantity demanded can be caused by:

 

Which pair best exemplifies complementary goods?

 

A change (or shift) in demand occurs due to a change in consumers' state of mind about purchasing a product that is based on something other than the       of the product.

 

A change in ______ refers to a movement along the demand curve for cars in response to changes in the price of cars, whereas a change in ______ refers to a shift of the demand curve for cars leftward or rightward in response to anything other than changes in the price of cars.

 

The market demand curve is the ______ of all individual demand curves for a good or service.

 

Suppose Tom, George, and Lisa are the only consumers in this market. If the price per hour of tutoring is $10, market demand is equal to

 

A change in ______ refers to a movement along the demand curve in response to changes in the price of a good, whereas a change in ______ refers to a shift of the demand curve leftward or rightward in response to anything other than changes in the price of a good.

 

The market supply curve is the ______ of all individual supply curves for a good or service.

 

A change in quantity demanded is caused by an increase or decrease in the       of the product under consideration and nothing else.

 

Which of the following are determinants of supply?

 

True or false: Changes in income, tastes or preferences, or expectations will cause a movement along the demand curve.

 

_______ is the total quantities of a good or service people are willing and able to buy at alternative prices in a given time period.

 

How do improvements in productive technology enable firms to produce more units of output?

 

Suppose Tom, George, and Lisa are the only consumers in this market. If the price per hour of tutoring is $30, market demand is equal to

 

An increase in sales, property, or any other tax will ______ production costs and ______ supply.

 

The       supply of a good reflects the collective behavior of all firms that are willing and able to sell that good at various prices.

 

If producers expect lower future prices for their goods or services, this impacts their _______ and will impact the _______ curve.

 

The number of sellers or competitors in a market is a determinant of       (one word).

 

The supply curve is an upward-sloping curve because as price ______, the producer will be willing to supply ______ of the product.

 

A change (or shift) in demand comes from a change in consumers' state of mind about purchasing a product because of:

 

The law of supply states that as price ______, the quantity supplied rises; as price ______, the quantity supplied falls, ceteris paribus.

 

Improvements in technology enable firms to produce       output with current resources.

 

The market       schedule shows the various amounts of a product that producers are willing and able to make available for sale at each possible price during a specific period.

 

A decrease in the sales, property, or any other tax will ______ production costs and ______ supply.

 

Changes in ______ about the future price of a product may affect the producer's current willingness to ______ that product.

 

Which curve is an expression of sellers' intentions, of the ability and willingness to sell, not a statement of actual sales.

 

The supply curve is a(n) ______ sloping curve.

 

The only factor that causes a movement along the supply curve is a change in:

 

Other things equal, the fundamental characteristic of supply is as price _______, quantity supplied _______.

 

A shift of the supply curve to the right reflects a(n)       (increase/decrease) in supply, while a shift of the supply curve to the left reflects a(n)       (increase/decrease) in supply.

 

The market supply curve is the horizontal ______ of all the individual supply curves for a good or service.

 

What determines market price and equilibrium quantity in a market?

 

The equilibrium price and quantity reflect a compromise between buyers and sellers where quantity demanded _______ the quantity supplied

 

The market       curve indicates the combined sales intentions of all market participants.

 

In most conditions, the       mechanism (or the "invisible hand") ensures that the right amount of a particular product gets produced.

 

Which of the following refers to a change in quantity supplied?

 

A shortage occurs when quantity demanded       quantity supplied. (Enter only one word in the blank.)

 

An increase in the number of hair salons will cause:

 

If the price of tutoring is $30 per hour, there is a market _______ equal to approximately _______.

 

      price is the price at which the quantity of a good demanded in a given time period equals the quantity supplied.

 

A surplus is also known as an excess of ______.

 

The equilibrium price reflects a compromise between       and      .

 

At the equilibrium price, there is neither a market       nor a market       because the quantity demanded by consumers at a specific price is identical to the quantity supplied at that same price.(Enter one word for each blank)

 

The use of market prices and sales to signal desired outputs (or resource allocations) is called:

 

A shortage results from an excess of quantity      .

 

Which of the following best describes why a surplus would not persist for very long?

 

If the price of tutoring is $20 per hour, there is a market _______ equal to approximately _______.

 

_______ is the amount by which the quantity supplied exceeds the quantity demanded at a given price.

 

The equilibrium price will _______ whenever the supply or demand curve shifts.

 

If the market price is below equilibrium, a _______ exists and there will be upward pressure on the price until it reaches equilibrium.

 

An increase in demand while holding supply constant ______ equilibrium price and ______ equilibrium quantity.

 

A surplus would not persist for very long because

 

Which of the following consistently illustrate the effects on equilibrium price and quantity as a result of different changes in supply and demand?

 

A change in either       or       will cause a change in equilibrium.

 

An increase in supply while holding demand constant results in a(n) ______ in equilibrium price, but a(n) ______ in equilibrium quantity.

 

The function and purpose of enacting a price ceiling is:

 

A decrease in demand while holding supply constant results in _______.

 

A price       is the upper limit (or maximum legal price) a seller may charge for a product or service.

 

Match each change in supply and demand with the appropriate impact on equilibrium price and quantity.

 

Price controls or ______ mandated in the apartment rental market benefit the consumer by establishing a price ______ the free market equilibrium price.

 

If the supply of corn increases (holding demand constant) the equilibrium price of corn will ______ and the quantity will ______.

 

Price ceilings have three predictable effects, they:

 

Government may place legal limits on prices when it is determined that prices are unfairly       (high/low) for buyers or unfairly       (high/low) for sellers.

 

A price       is a lower limit imposed on the price of a good or service.

 

A price ceiling is the upper limit (or maximum legal price) a seller may charge for a product or service where a price at or below the ceiling is ______ and a price above the price ceiling is ______.

 

A price floor in the wheat market benefits ______ while making it non-beneficial for ______.

 

Which of the following scenarios describe the impact on equilibrium price and quantity when supply decreases (while holding everything else constant)?

 

Which of the following in the rental market for housing benefits renters, but makes it unprofitable for suppliers or landowners?

 

If the government controls the market with a binding price floor the equilibrium market price would be ______ the floor and a _____ will result.

 

When a price ceiling is enacted, the new price is established ______ the equilibrium price, quantity demanded ______ and quantity supplied ______ thus creating disequilibrium.

 

A price       is a legally mandated price imposed above the equilibrium price, which would be established between buyers and sellers in a free market.

 

Which of the following causes shortages or surpluses, distortions in resource allocation and negative side effects?

 

Price floors are invoked when a society feels that ______ for resource suppliers or producers.

 

The doctrine of "leave it alone," of nonintervention by government in the market mechanism is known as

 

Market sales and prices send a signal to producers about what mix of output consumers want. This concept is known as the

 

Price floors have three predictable effects. They:

 

The economic question of '______ to produce' is about decisions related to who is going to consume the goods and services produced.

 

      outcomes are the best possible, given the level and distribution of incomes and scarce resources.

 

Government-controlled prices cause:

 

How might a natural disaster such as hurricane Harvey impact an unregulated market for bottled water? The damage inflicted would most likely cause

 

The term "laissez-faire" refers to:

 

______ is the use of market prices and sales to signal desired outputs (or resource allocations).

 

The economic question of '______ to produce' is about decisions related to the mix (quantity and type) of goods and services to make available in a given economy.

 

How might a natural disaster such as hurricane Harvey impact an unregulated market for bottled water? The damage inflicted would most likely cause a

 

Per capita GDP will always rise when:

 

The value of output produced in the United States in current prices measures:

 

GDP is the sum of consumption, investment, government purchases, and:

 

Capital intensive means:

 

True or False: A country's GDP includes all output produced within its borders

 

Economic growth:

 

Net exports measures the:

 

Which of the following contribute to high levels of U.S. production?

 

U.S. net exports are:

 

A country's total output includes all of the following except:

 

The goods and services sold to foreign buyers are:

 

In the United States, government regulation is primarily designed to:

 

In the United States, corporations:

 

Most businesses in the U.S. are classified as:

 

Which of the following is NOT viewed as a role for the U.S. government?

 

Which type of output leads to increased output in the future?

 

The basic economic issue concerning the FOR WHOM question is specifically interpreted to mean, who:

 

Which of the following is included in investment, according to economists?

 

Currently, the U.S. economy is best described as:

 

The primary way to distinguish among corporations, partnerships, and proprietorships is by observing:

 

GDP can be found by:

 

In terms of income distribution, if a person moves from the lowest fifth of households to the highest fifth over many years, this is known as:

 

To compare the standard of living of one country to another, economists use:

 

Income transfers include all of the following EXCEPT:

 

Market participants include:

 

The highest-valued alternative that is given up or sacrificed when choosing to produce or consume one good over another is referred to as _

 

Quantity demanded is illustrated on the ______ axis, while price is illustrated on the ______ axis.

 

Which of the following best clarifies the "ceteris paribus" assumption?

 

An increase in the price of Coke will change the ________ for Coke while a decrease in the price of Pepsi will change the ______ for Coke.

 

A change in demand is represented by a ______ the demand curve while a change in quantity demanded is represented by a _______ the demand curve.

 

Equilibrium price and equilibrium quantity occur where:

 

The number of sellers or competitors in a market is a determinant of

 

The ________ of supply are any factors other than the product's _______ that have an effect on the supply of a good or service and cause the supply curve to shift.

 

Equilibrium price and equilibrium quantity occur where:

 

In certain markets, the _________ sometimes concludes that the market forces would result in prices that can be unfairly high for buyers or unfairly low for sellers.

 

Which of the following provides the best example of the law of supply?

 

For consumers, most market activity can be explained by the goal of:

 

According to the law of demand, a demand curve:

 

Which of the following is true if there is a surplus of a particular good?

 

The market demand for a particular good indicates:

 

Ceteris paribus, according to the law of supply, if the price of lawn mowing decreases from $50 per lawn to $45 per lawn, then the:

 

Which of the following is not a determinant of demand?

 

Which of the following participates in the product market?

 

The invisible hand is most consistent with:

 

Consumers:

 

When there is a surplus in a market, prices are likely to fall because:

 

If the price of a product decreases, ceteris paribus, then the quantity demanded of the good will ______ and the quantity supplied will _______.

 

Consumers are on the _____ side of the product market, businesses are on the _____ side of the factor market and government is on the _____ side of the product market.

 

Ceteris paribus means:

 

Ceteris paribus, according to the law of supply, if the price of product Z increases from $6 to $8, then the:

 

A market surplus occurs when:

 

A price ceiling is:

 

A price floor is:

 

A market shortage is:

 

The doctrine of laissez-faire:

 

According to the law of demand, a change in _______ causes a movement along the demand curve.

 

The equilibrium price and quantity are determined by the:

 

Which of the following is not a factor of production?

 

The quantity of a good that suppliers are willing and able to supply at a given price in a given time period depends on:

 

In a market, the equilibrium price is determined by:

 

Which of the following is a constraint that motivates economic interactions?

 

Any place where factors of production (land, labor, capital, etc) are bought and sold is a:

 

Suppose you were capable of growing your own food, building your own shelters, and so on. How should you expand your limited time and energy?

 

Key market participants in the U.S. economy:

 

Any place where factors of production are bought and sold is a _____ market.

 

When quantity is plotted on the horizontal axis and price on the vertical axis, the supply curve is ______ sloping curve.

 

A shortage occurs when quantity supplied __________quantity demanded.

 

A change in supply is represented by a ______ the supply curve while a change in quantity supplied is represented by a _______ the supply curve.

 

With a price floor, quantity _______ will exceed quantity______-, resulting in a persistent surplus of product.

 

What is a determinant of demand?

 

From an economic perspective, what is true of a market?

 

The law of demand describes a(n) __________ relationship between the price of a good or service and the quantity demanded of that good or service, ceteris paribus.

 

When modeling market interactions, the function of business firms __________ factors of production and __________ products.

 

What are key market participants in the U.S. economy?

 

A price ceiling is

 

Any play where factors of production (e.g., land, labor, capital, entrepreneurship) are bought and sold is a ________ market.

 

The supply curve is __________ sloping curve.

 

What are determinants of supply?

 

When modeling market interactions, foreign market participants participate in the product market by:

 

The supply curve illustrates the relationship between

 

Determinants of demand are:

 

Improvements in technology are a determinant of __________.

 

Price ceilings have three predicable effects, they:

 

The total quantities of a good that sellers are willing and able to sell at alternative prices in a given time period is:

 

The sum of individual demands is known as __________ demand.

 

The law of __________ is illustrated by a downward-sloping curve.

 

Market __________ is a schedule or curve showing the various amounts of a product that producers are willing and able to make available for sale at each possible price during a specific period.