test 1
test 1
test 2
test 3
test 3
100
if honda increases the price of their cars what will happen to ford cars?
demand will increase (substitutes)
100
toyota has recently bought a new machine that can do twice the work as a human. what happens to toyota supply and demand graph?
supply shifts right (increase)
100
what happens to the elasticities of demand and supply in the long run
both become more elastic
100
specialization occurs when a country concentrates its productive resources on the goods an services it can produce most efficiently. (this was on the test i didnt know how to make it a question) [the answer to this is a different question that was on the test sorry if ur confused]
when a country produces a good that they have a comparative advantage on, the country is using its resources more efficiently.
100
what type of market is described by the following attributes: many firms, differentiated products, free entry
monopolistic competition
200
on a supply and demand graph, if the demand shifts right what happens to the overall graph?
price equilibrium increases quantity equilibrium increases
200
opportunity cost definition
what you give up to obtain an item
200
which form of taxation hurts apple growers more a $1 per bushel production tax or $1 per bushel consumption tax
both hurt the apple grower equally
200
minimum wage laws: a. help the low skilled people more than the high skilled people b. make it easier to get a job for a low skilled person than a high skilled person c. hurt low skilled labor more than high skilled labor d. make it harder to get a job for high skilled people
C
200
1. profit maximization decisions are based on: a. economic profit b. accounting profit c. both a and b d. total revenue e. total cost 2. when are profits maximized?
1. C 2. MC = MR
300
You work for Michelin tire company and have just heard that Ford, GM, and Toyota will lower the prices of cars in the next few months. Given this knowledge what would you advise Michelin to do?
produce more tires in the future and less tires now
300
where does equilibrium occur
quantity demanded = quantity supplied
300
rent control cause shortages or surpluses? are they price ceilings or floors? do they lead to increases or decreases in quality?
shortages ceilings decreases
300
True/Flase 1. Minimum wage laws increase the standard of living for everyone 2. the higher the price floor the larger the surplus 3. a price floor creates a shortage in a market 4. if the equilibrium wage is $10 per hour and the government implements a price floor of $8 per hour, there will be a shortage of labor.
1. false 2. true 3. false 4. false
300
in a perfectly competitive market a firm determines: a. the price to sell its product at b. the quantity to sell its product at c. the price and quantity d. neither; the government sets the price and quantity
B
400
Name Max price willing to pay jane 50 kim 47 adele 43 john 39 market price of oil is $45. what is the total consumer surplus
$7
400
a big explosion has halted the mining of one of the biggest graphite mines in china. how will this change the supply and demand curves of graphite? what will happen to price of graphite?
supply shifts left (decrease) increase in price
400
a 4% increase in the price of beer will cause a 1% decrease in the quantity demanded of beer. the elasticity of demand for beer is
inelastic (0.25)
400
inputs required to make 1 car/shirt (each country has 40 units of inputs) cars shirts US 1 2 China 4 2 1. If the US and China use half of their inputs for each good what will be the total production? 2. the opportunity cost of cars is _____ shirt(s) in US and _______ shirt(s) in china. 3. the US should produce ________ and China should produce ________. 4. if the countries fully specialize and produce only what they have comparative advantage on, the total production would be what?
1. 25 cars; 20 shirts 2. 1/2; 2 3. cars; shirts 4. 40 cars and 20 shirts
400
when a tariff is placed on a product that is imported we know that: a. the price of the product will increase in the domestic country b. the price of the product will decrease in the domestic country c. the quantity traded in the domestic country will increase d. the gains from trade will increase
A
500
what causes inflation
increase in the money supply
500
why do researchers usually find a positive relationship between college enrollment rate and the unemployment rate?
opportunity cost of attending college decreases during recessions leading to higher enrollment rates
500
1. cross price elasticity is negative for _________ and positive for __________. 2. income elasticity is negative for __________ and positive for ___________.
1. complements; substitutes 2. inferior goods; normal goods
500
jane wants to open her own restaurant. she is currently working for another restaurant as head chef and earns 70,000. she estimates that the cost of inputs needed to run her restaurant is 150,000 per year. she also estimates that she will be able to generate a total of 200,000 in revenue. her accounting profit in this case is?
50,000
500
the total cost for producing 7 hamburgers is $21. the firm will make positive profits at all of the following prices except: a. 4.75 b. 4.00 c. 3.50 d. 2.00
D
M
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