Macroeconomics > QUESTIONS & ANSWERS > Sophia (Macroeconomics) - Unit 2 Practice Milestone Already Passed (All)

Sophia (Macroeconomics) - Unit 2 Practice Milestone Already Passed

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Sophia (Macroeconomics) - Unit 2 Practice Milestone Already Passed If the price of gold is rising, which of the following can we also expect to be true? ✔✔Quantity demanded for gold will be de ... creasing. What will finding out that two of her children have severe peanut allergies cause for Jenna's demand for almond butter? ✔✔The almond butter demand curve will make a shift to the right. Some factors affect production decisions, causing a shift in supply. Other factors create movement along the supply curve. Which example would create movement along the supply curve? ✔✔The price of tomatoes goes up. Which of the following is an example of consumer surplus? ✔✔Jackson was willing to pay up to $500 for airfare, but he got his ticket for $350. Select the true statement about producer surplus. ✔✔If a good sells for $15, and the producer only expected $10, the surplus is $5. Which of the four options below is prevailing price? ✔✔P4 In which scenario is the price too high? ✔✔Many farmers produce large quantities of milk at $7 per gallon, but no one wants to buy it. If the market equilibrium for wages in construction is $15/hr and government officials would like to set a price floor for wages, which amount below would be non-binding? ✔✔$10 per hour Which of the following describes what happens, generally speaking, whenever a binding price constraint is imposed? ✔✔Some surplus shifts from consumer to producer or vice versa. When government policy establishes a price ceiling or floor, what are policymakers attempting to do in relation to deadweight loss? ✔✔They are trying to maximize the surplus of one group while also minimizing deadweight loss. The main factor that determines who bears the burden of a tax is which of the following? ✔✔Elasticity What is the effect of the subsidy, according to this graph? ✔✔Consumers benefit more than producers from the subsidy. Which statement regarding aggregate demand is true? ✔✔AD looks very similar to a regular demand curve. Which statement is true of short run aggregate supply (SRAS), rather than long run aggregate supply (LRAS)? ✔✔Shows a positive relationship between price level and RGDP Which answer choice below is NOT true regarding aggregate supply curves? ✔✔If short run equilibrium is beyond LRAS, the economy is producing in a sustainable way. [Show More]

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