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T-Shirts, Prices, Higher, Supply, Economic Growth, Principles of Macroeconomics Third Exam

The key terms in this Principles of Macroeconomics course include Selling, T-Shirts, Prices, Higher, Supply, Economic Growth, Green, Stores, Market, Production Possibilities Frontiers (PPFs), Principles of Macroeconomics, Third Exam


Over the last 20 years, countries such as India and China have

invested heavily and enjoyed significant economic growth.

consumed heavily with little regard for the future.

produced wholly for current consumption.

eliminated the problem of scarcity.

produced outside their production possibilities frontiers (PPFs).


Kimberly’s sister would like to start a business with her brother selling simple T-shirts that are green in color at all stores in the area. Her brother disagrees and thinks that the shirts should have a special logo on them and should be sold only at specific stores. As the deciding vote, what should Kimberly choose and why?

selling green T-shirts because prices will be higher as the number of stores increases

selling shirts with a special logo because prices will be higher as the shirts are sold in fewer stores

both C and D

selling green T-shirts because prices will be higher as the shirt becomes more commonplace

selling shirts with a special logo because prices will be higher as the shirts becomes more unique


Firm A notices that Firm B is making a profit by producing footballs. There is nothing stopping Firm A from entering the football market, so it does. Holding all else constant, the number of firms in the market will

increase, causing demand to increase.

increase, causing the supply to shift down.

decrease, causing the supply to decrease.

decrease, causing the supply to increase.

increase, causing the supply to increase.


The change in equilibrium shown in the accompanying figure would be explained by a(n) _______________ in the price of an input and a(n) _____________ in the price of a ___________.

Economic Growth - Principles of Macroeconomics - Third Exam

increase; increase; complement

increase; decrease; complement

decrease; increase; substitute

decrease; increase; complement

increase; increase; substitute


Over the last 20 years, countries such as India and China have

invested heavily and enjoyed significant economic growth.

consumed heavily with little regard for the future.

produced wholly for current consumption.

eliminated the problem of scarcity.

produced outside their production possibilities frontiers (PPFs).


Kimberly’s sister would like to start a business with her brother selling simple T-shirts that are green in color at all stores in the area. Her brother disagrees and thinks that the shirts should have a special logo on them and should be sold only at specific stores. As the deciding vote, what should Kimberly choose and why?

selling green T-shirts because prices will be higher as the number of stores increases

selling shirts with a special logo because prices will be higher as the shirts are sold in fewer stores

both C and D

selling green T-shirts because prices will be higher as the shirt becomes more commonplace

selling shirts with a special logo because prices will be higher as the shirts becomes more unique


Firm A notices that Firm B is making a profit by producing footballs. There is nothing stopping Firm A from entering the football market, so it does. Holding all else constant, the number of firms in the market will

increase, causing demand to increase.

increase, causing the supply to shift down.

decrease, causing the supply to decrease.

decrease, causing the supply to increase.

increase, causing the supply to increase.


The change in equilibrium shown in the accompanying figure would be explained by a(n) _______________ in the price of an input and a(n) _____________ in the price of a ___________.

Economic Growth - Principles of Macroeconomics - Third Exam

increase; increase; complement

increase; decrease; complement

decrease; increase; substitute

decrease; increase; complement

increase; increase; substitute