Intro to Economics
When a good is perfectly elastic or has zero elasticity, which direction is the demand curve facing?
A farmer is selling onions at a farmers market and values his onions at $.40 each. He is able to sell them for $1 each. What is his producer surplus from this sale?
What is 60 cents?
What is the point where supply and demand are in balance?
What is equilibrium?
Imagine that your lunch break at school gives you a variety of meal options. Your #1 option is Chick-Fil-A, and your #2 option is Chipotle. What is the opportunity cost of selecting Chick-Fil-A and purchasing a sandwich combo for $8.50?
What is going to Chipotle?
What is the formula for total revenue?
What is price X quantity sold?
What term means "other things being equal"
What is ceteris paribus?
Roger's income increases by 20%. He decides to buy 12% less canned soup. For Roger, canned soup is a ________
What is an inferior good?
After eating 3 donuts, Derrek has to think long and hard about whether or not he wants that 4th donut. What is this is an example of?
What is marginal thinking?
Juan spends six hours playing pool with his friends. The cost to play pool is $14 and he gave up 6 hours of work at $11/hour. His opportunity cost is.
What is $80?
Which of the following is a normative statement? Texas is next to New Mexico /Ponies can live until their 35 years old/Jupiter is made primarily of gasses/Jackie Chan is a better actor than Will Smith
What is Jackie Chan is a better actor than Will Smith
What type of good would peanut butter and jelly relate to each other?
What is a complementary good?
During the war in Vietnam, you couldn't be drafted if you had a job in an essential industry. As a result, essential industries saw a rise in employment numbers. What is this is an example of?
What is an unintended consequence?
The market for Gatorade has a demand function, Qd = 150 – 5P and supply function, Qs = 10 + 2P. Calculate the equilibrium price and equilibrium quantity of water bottles sold in this market.
What is P = 20; Q = 50
Which of these is an endogenous factor in the supply and demand model?
Tastes and preferences/Substitutes/Compliments/Quantity
What is quantity?
If you move to California the minimum wage is $20 but the market wage is $24 an hour. What wage will you likely be paid upon moving to California?
What is $24?
How would you describe the input method when calculating comparative advantage.
What is An input question emphasizes that using less resources (typically time) to produce a good is better
The market for wheat and the market for bread are initially in equilibrium. The wheat crop, a primary ingredient for bread, gets destroyed due to a freeze. This resulted in an increase in equilibrium price and a decrease in equilibrium quantity of bread. What happens to demand and supply?
What is there is no change in demand and a decrease in supply?
On the production possibilities curve, where are points located that are impossible in the short run without trade or economic growth?
What is impossible?
If Austin can produce 60 trucks in the same time that Lubbock can produce 100 trucks, which city has absolute advantage?
What is Lubbock?
What type of elasticity of demand does a Nissan GTR R34 have? and what type of good is it
What is high elasticity of demand & What is a luxury good?
Which of the following are not part of the five foundations of economics? Trade/Opportunity Cost/Marginal Thinking/Incentives/Money
What is money?
You are given the following elasticities:
Price elasticity of demand for Burger King = -2.50
Cross-price elasticity between Burger King and Sonic = -3.00
Cross-price elasticity between Burger King and gasoline = -0.80
Income elasticity of demand for Burger King = 2.00
Calculate the percent change in sales at Burger King if income were to increase by 10%, ceteris paribus.
What is 20
How would you characterize the slope of a relatively inelastic demand or supply curve? (think how the curve looks)
What is steep?
Bike shop decides to drop the price of their mountain bikes from $1000 to $500. As a result, they increase sales from 100 to 200 units per month. Calculate the price elasticity of demand using the midpoint method.
What is -1?
In a galaxy far far away, this crystal powers the weapons of both Jedi's and Sith.
What is a kyber crystal?