Define Economics
Individuals are required to make choices because of:
A) Economics
B) Wants
C) Rational Behavior
D) Scarcity
D) Scarcity
A movement along a demand curve from one price-quantity combination to another is called:
A) A change in quantity demanded.
B) A shift in the demand curve.
C) A change in demand.
D) A change in quantity supplied.
A change in quantity demanded.
Supply curves are generally ____ sloping because ____.
A) downward; more consumers will buy the good if the price falls.
B) Upward; of the principle of increasing opportunity costs.
C) Downward; it is less expensive to mass produce goods.
D) Upward; of inflation
B) Upward; of the principle of increasing opportunity costs.
C) Decrease in quantity demanded.
Interpret the following statement: "An increase in the price of wheat will encourage farmers to increase the quantity of wheat supplied to the market."
A) The statement is correct.
B) The statement would be correct if "quantity of wheat demanded" were substituted for "quantity of wheat supplied."
C) The statement is incorrect because it confuses a change in quantity supplied with a change in supply.
D) The statement would be correct if it read that a "decrease in the price of wheat will encourage farmers to increase the quantity of wheat supplied to the market."
A) The statement is correct
You just received your midterm exam results and you professor wrote the following note: "You received a 70 on this exam, the average score. If you want to improve your grade, you should study more."
The first statement is ____.
The second statement is ____.
Positive Statement
Normative Statement
A change in demand means there has been a shift in the demand curve, and a change in quantity demanded:
A) Results from a change in price of other goods.
B) Means a shortage or surplus will result from holding prices constant.
C) Also means deamdn has shifted.
D) Means that price has changed and there is movement along the demand curve.
D) Means that price has changed and there is movement along the demand curve.
But nearly all supply curves share a basic similarity: they slope _____.
A) Down from left to right
B) Up from left to right
C) Up from right to left
C) Down from right to left
B) Up from left to right
On powerpoint: What is the equilibrium price for this graph?
$70 is where quantity demanded is equal to quantity supplied
On powerpoint: At the price of $10 in the figure/graph, there is...
A) A surplus of 400 units
B) A shortage of 200 units
C) A surplus of 200 units
D) A shortage of 400 units
A) A surplus of 400 units
Larry has a competitive advantage in writing a term paper is he...
A) Can write a paper faster than the other students in class.
B) Has an absolute advantage in writing a term paper.
C) Always earns an A on his papers.
D) Has a low opportunity cost for writing a term paper.
D) Has a low opportunity cost for writing a term paper.
If the demand for steak increases as income increases, this means that steak is a(n):
A) Complementary good
B) Normal good
C) Inferior good
D) Substitute good
B) Normal good
Consider the market for corn. Indicate whether each of the following event will cause a shift in the supply curve or a movement along the curve. If it will cause a shift, specify the direction.
Event: A drought hits corn-growing regions: _______
Leftward shift of supply
Excess supply; 180 units
On powerpoint: In the figure/graph, the equilibrium price is initially $3 per bushel of wheat. If suppliers come to expect that the price of a bushel of wheat will rise in the future, but buyers do not, the current equilibrium price will:
A) Not change
B) Fall
C) Rise
D) Perhaps rise, fall, or stay the same, depending on whether there are more demanders or suppliers in the market
C) Rise
The graph below shows Tanya's weekly production possibilities frontier for doing homework (writing papers and doing problem sets). The vertical intercept (point A) is 10, and the horizontal intercept (point B) is 2. What is the opportunity cost of writing one paper?
5
If bagels and donuts are substitutes, then a decrease in the price of donuts will result in:
A) An increase in the demand for donuts.
B) A decrease in the demand for donuts.
C) An increase in the demand for bagels.
D) A decrease in the demand for bagels.
D) A decrease in the demand for bagels.
On powerpoint! Topic 3 for $300
A) Price of wool increases: C
B) Demand for sweaters decreases: E
C) Demand for sweaters increases: D
A severe freeze has once again damaged the Florida orange crop. The impact on the market for orange juice will be a leftward shift of:
A) The supply curve
B) The demand curve, as consumers try to economize because of the shortage.
C) Both the supply and demand curves.
D) The supply curve and a rightward shift of the demand curve, resulting in a higher equilibrium price.
A) The supply curve
On powerpoint: If the product in the graph is inferior, what will happen if income increases?
Demand decreases, shifts to the left