On-Line Activities

Dynamic Study Modules

Within MyEconLab, Dynamic Study Modules assess a student’s knowledge and only show questions still requiring practice. Modules for this chapter, which consist of multipart explanations, are based on the following questions:

  • When you think of an arrangement or institution that brings buyers and sellers of a good or service together, what are you thinking of?
  • Contracts, insurance, patents and accounting rules are:
  • In a market system, which of the following provides the information that individuals need to make decisions about resource allocation?
  • The market for corn is initially in equilibrium. Suppose that the production of biofuels, which use corn as an input, increase, and at the same time, increases in the price of oil cause farm production costs to rise. Which of the following explains the effect on equilibrium price and quantity in the corn market?
  • At the market equilibrium price:
  • In the previous diagram, when supply decreases, a __________ develops at the original price. Equilibrium price will __________ and equilibrium quantity will __________ as a new equilibrium is established.
  • The condition that exists when quantity supplied exceeds quantity demanded at the current price is known as __________.
  • Price performs a(n) __________ function. Inputs or outputs go to the __________ bidders if people are free to exchange voluntarily in the markets without government intervention or other market friction.
  • What name other than the demand curve can you give to this curve?
  • According to the graph economic efficiency is achieved at what level of output?
  • This graph shows an individual’s demand curve for tea. If the price is $2.00, what is the consumer surplus for the fourth cup of tea?
  • The difference between the lowest price a firm would have been willing to accept and the price it actually receives is known as:

Narrated Dynamic Graphs

Through MyEconLab, students have access to the Narrated Dynamic Graphs. They can watch and listen to my explanations of graphs, shifts of curves and changes in equilibrium outcomes. Here is a sample.