Primavera Economics Unit 3 Exam 2023/2024 Rated A+

Primavera Economics Unit 3 Exam 2023/2024 Rated A+ Which type of competition is characterized by differentiated products? Monopolistic competition. Look at the table. [Table.] What explains the change in quantity demanded, from 12 to 24, as the price decreases? Consumers will buy more at lower prices. When an even number of points exists in a set, how do you find the median? You find the mean of the two points in the middle of the set. What does a low price signal about a potential producer/supplier? NOT - That the producer might not find many consumers if it offers that product for sale. Why were businesses opposed to labor unions during the late 1800s and early 1900s? Unions demanded higher pay and safer working conditions for workers, which cut into a company's profits. If a product is inelastic, how will consumers likely respond to a price increase? They will continue to purchase the product and decrease other purchases if necessary. Which items are most likely to be highly elastic? (Select all that apply.) Jewelry, Apples. Why would the government set a price floor for wages? To promote a livable working wage. What is the purpose of a minimum wage? NOT - It offers a subsidy to workers whose job does not pay enough. Read the scenario. A business sells widgets. Each week, it receives a shipment on Monday and is sold out by Tuesday. This leaves many people in the community without widgets. What should the business do to help the market reach equilibrium? It should increase the price of the widgets. What is true of labor unions? They use collective bargaining to gain rights for worker salaries and workplace safety. Which depict a negative externality? (Select all that apply.) There was an expansion of an airport, which caused greater levels of noise pollution, There was an expansion of an airport, which decreased property values of nearby homes. Read the scenario. The federal government announced significant tax cuts, enabling people to keep a greater portion of their income. What will happen to the demand curve in this situation? The demand curve will shift right. What are variable costs? Costs that change based on production. What are examples of public disclosure required by the US government? (Select all that apply.) Food products must have nutrition labels and lists of ingredients, Real estate agents must disclose problematic information about a home to their clients, Car companies must provide information regarding gas mileage. Which is an example of a price floor? Minimum wage. What is the elasticity of supply? The relationship between a change in price and a change in quantity supplied. Why would a business want to be in the diminishing returns state of production? (Select all that apply.) Production is close to maximum, Production is still getting additional total product. What are fixed costs? Costs that do not change based on production. Read the sentence. A high-priced product has not sold after an extensive ad campaign. What is the most effective solution to encourage sales? Lower the price until an equilibrium price has been established. For the set {16, 17, 17, 19, 22, 26, 32, 35}, what is the median? 20.5. Which is true regarding elasticity of supply? A favor in supply elasticity is production difficulty. How could adding more efficient technology to the production process change a supply curve? The technology could cause a shift to the right as production costs decrease. What is a potential negative outcome when the government seeks to ensure specific market outcomes? NOT - Lack of consumer protection. How does total revenue differ from marginal revenue? Total revenue is a measure of all the money a business makes, whereas marginal revenue measures the money from one additional unit. What are steps that businesses typically take during a recession? (Select all that apply.) .25 - They increase production, They lower prices. What does the law of supply suggest? As prices increase, supply increases. What is the function of a union? It offers protection for workers who may have little power as individuals. How does the consumer price index help the consumer? It compares the prices of items from month to month. Why would the government require businesses to disclose information to consumers? (Select all that apply.) Businesses may sell dangerous items to consumers in order to make a profit, Consumers often buy products without taking sufficient time to investigate them.