Midterm Exam CHPT1-10 - Which of the following events would...

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Which of the following events would allow the production-possibilities curve to shift outward? More teenagers enter the labor force Increases in factors of production will shift the production-possibilities curve outward. The invisible hand refers to: The allocation of resources by market forces. Resources are allocated efficiently as if directed by an unseen force. In terms of the production-possibilities curve, inefficiency is represented by: All points inside the curve. At points inside the production possibilities curve, we can get more of one good without sacrificing any other goods. When the government provides more services than it previously did, ceteris paribus , there is a change in: The mix of output. In such a case the government sector grows, while consumption, investment and net exports must fall to offset it. One-fifth of the population, rank ordered by income, is: An income quintile. The top fifth of the income distribution represents the highest income earners. Net exports are: Equivalent to the value of exports minus the value of imports. In recent years our net exports have been negative because the dollar value of imports exceeds that of exports. The term income transfer refers to: A payment to an individual for which no current goods or services are exchanged.
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Programs such as social security count as transfers. A shift in supply is defined as a change in: Supply because of a change in a non-price determinant. Changes in supply occur because a change in a non-price determinant will cause a shift in the supply curve. Which of the following statements about markets is not true? Markets necessarily have a physical location. Markets exist wherever and whenever an exchange takes place, even in cyberspace. Which determinant of demand changes in the personal computer market as more individuals become interested in "surfing the Internet"? Number of buyers As individuals become interested in "surfing the Internet," more people will be willing and able to buy personal computers. The price ceiling that federal government placed on human organs caused: A shortage. Price ceilings increase the quantity demanded, decrease the quantity supplied and create market shortages. Ceteris paribus , which of the following is most likely to cause a decrease in the supply of skateboards? An increase in the cost of materials used to produce skateboards An increase in costs of production causes supply to decrease. An increase in price causes a decrease in the quantity supplied, while an improvement in skateboard-making technology would increase in supply. A market in which final goods and services are exchanged is a: Product market. A product market is where finished (final) goods and services are bought and sold.
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The equilibrium price in a market is found where: The market supply curve intersects the market demand curve The intersection of the demand and supply curves establishes the equilibrium price and output. When a surplus exists for a product:
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Midterm Exam CHPT1-10 - Which of the following events would...

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