Mid-Term Exam/Microeconomics/R. Ziegler Name______________________________ Answer Sheet Part I Matching __1. full employment __8. stagflation __16. diminishing marginal returns __2. disinflation __9. opportunity cost __17. ^S __3. public sector complex __10. economic growth __18. ^Qs __4. capacity utilization __11. economic development __19. leakages __5. accelerated depreciation __12. capital goods __20. laissez faire allowance __13. consumer goods __21. invisible hand __6. factors of production __14. human capital __22. production possibility __7. inelasticity __15. underemployment curve __23. demand Part II Matching __1. net taxes __9. social surplus __16. externalities __2. public goods __10. corporatism __17. collectivism __3. economic powers __11. economic functions __18. usury of government of government __19. expansionary __4. price floor __12. price ceiling disequilibrium __5. elasticity __13. elasticity coefficient __20. marginal cost __6. marginal utility __14. consumer surplus __21. paradox of value __7. tax incidence __15. supply shock __22. supply side economics __8. marginal revenue __16. opiate __23. consumer sovereignty __24. Great American Desert Part III Matching __1. fixed cost __8. variable cost __16. total costs __2. AVC __9. AFC __17. ATC __3. MC = MR __10. Total Profit __18. Malthus __4. shut down __11. breakeven __19. Liebniz __5. economic profit __12. normal profit __20. economic loss __6. accounting loss __13. monad __21. anomie __7. economy of scale __14. diseconomy of scale __22. Elijah McCoy __15. New Deal __23. Arsenal of Democracy __24. alienation 66-72 A 59-65 B 52-58 C 45-49 D ANSWERS TO MATCHING PART I A. attributable to changes in taste, this results in a new curve. B. period of high inflation accompanied by a stagnant economy such as we experienced in the middle and late 1970's. C. price mechanism D. more economic activity given the same level of technology. E. goods and services consumed as part of the population's standard of living. F. attributable to changes in price, it is represented by movement along a curve. G. land, labor, capital, and entrepreneurship H. actual consumption of a good or service. I. plots the opportunity costs of a given level of plant and equipment. J. the demand for gasoline is fairly unresponsive to changes in its price. K. increasing costs. L. would be represented by a brain surgeon, and combines factors of production, which is a phenomenon which marks modern economies at increasing levels. M. Adam Smith is generally associated with the use of this term meaning 'hands off.' N. what must be foregone in order to obtain something else. O. indicates at what level existing plant and equipment and resources are being used P. economic activity which occurs as a result of changes in technology. Q. the combination of public employees and those dependent of the public sector for their standard of living. R.defined by economists at about 5%, which means only frictional unemployment exists. S. used to produce consumption products. T. was part of JFK tax program, allowed business to write off the depreciation of investment in plant and equipment at faster rates, to encourage more investment. U. examples of this in the circular flow model would be imports, net taxes, and savings. V. a period marked by low inflation which occurs after a time of higher inflation. W. productive activity which involves a resource not being utilized to its full potential. ANSWERS TO MATCHING PART II A. responsiveness of demand for a good or service to a change in its price. B. very high interest rates C. the economic model of fascism which is based on the creation of national industrial councils made up of representatives of government, business, and labor which control all economic decisions in regard to that industry D. effects of an economic activity on others than those immediately involved in it. E. additional use value derived from F. refers to the various forms of socialisms and related alternatives to market capitalism. G. what the Great Plains, the bread basket of the world, was thought of before Lincoln's programs. H. government imposed maximum legal price. I. injections > leakages J. though it accepts a positive role for government in support of market forces, it holds that government's role in the economy is too large and hurts incentives to produce, and advocates decreases in tax rates and regulation of business. K. disputes the notion that we are controlled by advertising. L. difference between what is paid for some good or service and what would have been willingly paid for it by a consumer. M. are diamonds or water more valuable? N. taxing, spending, and regulating. O. suggests that the burden of a tax in shared between producer and consumer. P. that derived from selling one additional unit of output. Q. consumed equally by everyone whether they pay or not. R. the 'profit' of an entire economy. S. government imposed minimum price, as used to keep agricultural commodity prices high. T. total taxes - transfer payments U. an event, often external, which has an impact on the availability, cost, or value of a resource. V. %^Q/%^P W. that incurred as a result of producing one additional unit of output. X. providing public goods, maintaining a stable rate of economic growth, and redistribution of income and wealth. Y. what Karl Marx referred to religion as. ANSWERS TO MATCHING PART III A. includes a normal profit B. more than a normal profit C.the sum of fixed and variable costs D. the supply side spike of WWII which ended the Depression. E. varies with output. F. exemplary of productivity increase G. remain unchanged at any level of output. H. anything less than a normal profit. I. reduction in average total cost as output rises. J. the discrete particular in Liebniz which is not understood in terms of its relationship to the field it operates/functions within. K. this is the point at which businesses operate, with profits maximized or at least losses minimized. L. FC + VC/Q M. (P - ATC)Q N. increase in average total cost as output rises. O. defined on Liebniz as the source of alienation, when a discrete particular is 'disconnected' from its 'field.' P. overpopulation theory which overlooked the capacity for human creation of technology. Q. FC/Q R. on a balance sheet, costs exceed revenue. S. argued that in natural and social sciences, there was a relationship between the whole and its composite parts. T. although it may have helped some people during the Depression and established some worthwhile programs, it also deepened the Depression and made it last longer. U. equals what an alternative investment would have earned. V. in socialism, this occurs as the worker is 'divorced' from the productive process or the proceeds of his labor. W. VC/Q X. price is below the AVC curve Return to Beginning of ejps