Principles of Microeconomics Exam 1 Questions And Answers

Principles of Microeconomics Exam 1
Questions And Answers
Badx-xCORRECTxxANSWER-Anythingxwithxnegativexvaluextoxthexconsumer.

Capitalx-xCORRECTxxANSWER-thexequipmentxand
structuresxusedxtoxproduce
goodsxandxservices

CapitalxGoodx-xCORRECTxxANSWER-
Canxbexusedxtoxmakexotherxcapitalxgoodsxorxconsumerxgoods

CapitalxResourcesx-xCORRECTxxANSWER-Somethingxproducedxthatxisxlong-
lastingxandxusedxtoxproducexotherxgoods

CapitalxStockx-xCORRECTxxANSWER-
Thextotalxamountxofxcapitalxavailablextoxaxnation,xinxallxforms,xforxproductivexusexatxanyxgive
nxtime.

ChangesxinxDemandx-xCORRECTxxANSWER-Shiftsxorxpivotsxinxthexdemandxcurve

ChangesxinxSupplyx-xCORRECTxxANSWER-shiftsxorxpivotsxinxthexsupplyxcurve

Complementsx-xCORRECTxxANSWER-twoxgoodsxforxwhichxan
increasexinxthexpricexof
onexleadsxtoxaxdecreasexin
thexdemandxforxthexother

ConsumerxSurplusx-xCORRECTxxANSWER-thexamountxaxbuyerxis
willingxtoxpayxforxaxgood
minusxthexamountxthe
buyerxactuallyxpaysxforxit

CrossxPricexElasticityxofxDemandx-xCORRECTxxANSWER-a
measurexofxhowxmuchxthexquantity
demandedxofxonexgoodxrespondsxtoxa
changexinxthexpricexofxanotherxgood,
computedxasxthexpercentagexchangexin

, quantityxdemandedxofxthexfirstxgood
dividedxbyxthexpercentagexchangexin
thexpricexofxthexsecondxgood

CrossxPricexElasticityxofxDemandx(BetweenxtwoxProducts)x-xCORRECTxxANSWER-
axmeasurexofxhowxmuch
thexquantityxdemanded
ofxonexgoodxrespondsxto
axchangexinxthexpricexof
anotherxgood,xcomputedxas
thexpercentagexchangexin
quantityxdemandedxofxthe
firstxgoodxdividedxbyxthe
percentagexchangexinxthe
pricexofxthexsecondxgood

DemandxCurvesx-xCORRECTxxANSWER-axgraphxofxthexrelationship
betweenxthexpricexofxaxgoodxand
thexquantityxdemanded

DeterminantsxofxDemandx-xCORRECTxxANSWER-1.xIncomex-
xMoneyxearnedxoverxaxperiodxofxtime

2.xWealthx-xNetxWorth
3.xTastesx-xChangesxinxTaste
4.xPricexofxSubstitutesx-xWine
5.xPricexofxComplementsx-xPizza
6.xFuturexPricesx-xMemorialxDay

DeterminantsxofxSupplyx-xCORRECTxxANSWER-1.xInputxPricesx-
xResourcesxandxRawxMaterials

2.xTechnologyx-xMorexEfficientxUsexofxResources
3.xNumberxofxSellers
4.xFuturexPricesx-xPricexExpectations
5.xGovernmentxPoliciesxA.xSubsidiesxB.xTaxesxC.xRestrictions
6.xWeatherx(Agriculture)

DirectxRelationshipx-xCORRECTxxANSWER-
Twoxvariablesxmovexinxthexsamexdirection.xItxonexincreasesxthexotherxincreases.xIfxonexdec
reasesxthexotherxdecreases.

EntrepreneurialxResourcesx-xCORRECTxxANSWER-EntrepreneurshipxandxManagement

Entrepreneurshipx-xCORRECTxxANSWER-
Thexwillingnessxbyxcreativexpeoplextoxtakexrisksxtoxcreatexnewxandxinnovativexproducts.

Equilibriumx-xCORRECTxxANSWER-axsituationxinxwhich