Econ Review

Front

Scenario: Take-home pay drops for Los Angeles residents for third straight month how does the market for restaurants respond?

Back

Price and Quantity Decrease

Answer explanation

Front

Scenario: What is the impact on the coal market when a government imposes stricter regulations on mining?

Back

Price increases and quantity decreases

Answer explanation

Government Action

Front

Scenario: Surgeon General warns that eating beef can be hazardous to health. Options: Price and quantity increase, Price and Quantity Decrease, Price decreases and quantity increases, Price increases and quantity decreases

Back

Price and Quantity Decrease

Answer explanation

Consumer Taste

Front

Scenario: The state of California requires a special low-emission formula of gasoline to be sold at gas stations in the state. Gas market does what?

Back

Price increases and quantity decreases

Answer explanation

Government action

Front

Scenario: The “waffle diet” is sweeping the country, what is expected to happen in the syrup market?

Back

Price and quantity increase

Answer explanation

Complementary Goods

Front

Which of the following points on the PPF display productive efficiency? Options: Points A, B, C, D, and F; Points A, B, C, and D only; Points B, C, D, and F only; Points A, C, D, and F only

Back

Points A, B, C, D, and F

Front

What is one of the main factors that can push out the PPF over time?

Back

Improvements in technology.

Front

What is the main lesson of sunk costs according to the text?

Back

To ignore them and make decisions based on future outcomes

Front

What is the law of diminishing marginal utility?

Back

The principle that as a person consumes more of a good, the additional utility from each additional unit of the good declines.

Front

What does the opportunity cost of attending college include?

Back

Both out-of-pocket costs and lost earnings.