Micro Flashcards
- The term which means whatever must be given up to obtain an item is
c. Opportunity Cost
- Scarcity, every economic decision involves
a. Trade off
- In order to fix 1 car tire, jerry fixed 3 bicycle tires. In order to fix 1 car tire, berry fixes 5 bike tires, who has the comparative advantage
a. Berry has the comparative advantage over Jerry
- GRAPH a. Biff is 9, 6. Howie is 12 9 The answer is absolute advantage in both activities.
a
- GRAPH a. The prices were a) 10 b)8 c)6 I put 6 - WRONG
a
- Milk can be used to make yogurt and cheese, other things equal, if consumption starts demanding more yogurt a. Supply of milk will decease. b. Demand of milk will increase. c. Supply of milk will increase d. Demand of milk will decrease e. None of the above
E ————————————————————————- Complements so since increase in demand of yogurt, increase in demand of milk. B.
- if resources are owned by individuals instead of government
c. resources used will be guided by changing related to prices as owners attempt to maximize self interest ??? ————————————————————————- Self interest.
- Demand for cocaine is unit Elastic, price of cocaine were to rise 10%,
b. quantity demand will fall 10%
- Price for a 27 TV = $450. consumers buy 1000 of them, prices rises to $550 by 600 of them. What is the price elasticity of demand in this range.
Answer is 2.5
- In economics “short run” is defined
a. A period of time during which at least one production input is fixed.
- The total cost to build 8 tract houses is $1,000,000. total cost to build 9 tract houses $1,050,000. What is the Margin cost of the 9th tract house. a. NOT 116,667
MC = Change in TC / Change in Quantity Use this formula ————————————————————————- change in TC = 50000 Change in Quantity = 1 MC = 50k
- once it becomes obvious that a common resource is being overused
The answer is B. as a period of time when at least one of the four factors of production is fixed.
- If the equilibrium of a dollar in terms of pesos is 20. what is the equilibrium price in terms of dollars
.05
Related to gasoline, which graph demonstrates the effect of an increase in the price of Cars -NOT Demand shift right
??? ———————————————————————– increase in the price of cars means decrease in quantity demanded for cars. since gasoline is a complement, it also means a decrease in quantity demanded for gasoline.
- Accounting profit is equal to? A. Total revenue minus the explicit cost of producing goods and services. B. Total revenue minus the opportunity cost of producing goods and service. C. Average revenue minus the average cost of products the last unit of a good or service. D. Marginal revenue minus marginal cost. E. Total revenue minus depreciation.
C ———————————————————————— Revenue - explicit. A.
- Comparative advantage is based on? A. Capital cost. B. Labor cost. C. Opportunity costs. D. Dollar Price. E. Both labor and capital costs.
C ————————————————————————- opportunity costs.
- Alternative outputs from one day of Labor? Wheat (is bushels) Textile (in yards) United States 12 3 Great Britain 3 12 According to the table above, the United States A. Has an absolute advantage over Great Britain in the production of textiles. B. Has an absolute advantage over Great Britain in the production of wheat. C. Has a comparative advantage in the production of textiles. D. Should export textiles to Great Britain. E. None of the above.
B ————————————————————————- correct.
- Which of the following would not tend to lower the price of VCR? a. Decreasing price of DVD players. b. Increasing price of video cassettes. c. Improvements in VCR production technology. d. Reduced price of raw material used in making VCR’S e. Increasing price of pay per view movies on cable TV.
C
- Fresh tuna can be canned or used to make sushi. Other things equals, if consumers starts demanding more sushi? a. The price of tuna will fall. b. Less tuna will be canned and more will be used in tuna sushi. c. The supply of fresh tuna will decrease. d. The price of tuna sushi will fall. e. None of the above.
B
- At a price of $9.50/pound, people buy 45 pounds of lamb. At a price of $10.50/pound, people buy 35 pounds of lamb. What is the arc elasticity of demand for lamb in this price range? a. 1.0 b. 2.5 c. 0.4 d. 3.0 e. none of the above
D ————————————————————————- (35 - 45)/ [(45 + 35) / 2] -10/ (80/ 2) = -.25 (10.50 - 9.50) / [(10.5 + 9.5) / 2] 1/ (20/2) = .1 -.25/.1 = -2.5 E. None of the above. Arc elasticities of demand are always negative.
- In economics, short run is defined as? a. A period of time less than a year. b. A period of time during which at least one production input is fixed. c. A period of time less than one month. d. A period of time during which all production inputs are fixed. e. A period of time during which all production inputs are variable.
B
- The table below shows a firms cost for range of quantity. Find the value of X? Q TC ATC MC 100 500 5 X 120 720 6 a. 11 b. 20 c. 1 d. 220 e. None of the above.
A ————————————————————————- MC = change in TC / change in Q 220/ 20 = 11 A.
- Compared to perfect competition, monopoly in the long run? a. Restricts outputs b. Changes a higher price. c. Produces at greater than the minimum average total cost. d. Is able to make greater profits. e. All of the above.
E
- A foot-Loofah is worth $15 to Edna. But she buys one on sale at Bath and Body works for just $8 what is the consumer surplus that results from edna’s purchase? a. $8 b. $15 c. $7 d. $23 e. Cannot be determined from the information given.
C ————————————————————————- She was WILLING to pay 15, but received it for only 8 dollars; she saved 7 dollars as the “consumer surplus” C.
- If purchases power parity exists and the exchange rate is 1.50 u.s. dollars per British pound, then a latte that has a price of $4.00 in Northridge, California, has a price of _ in London, England? a. 8.00 pounds b. 4.00 pounds c. 6.00 pounds d. 2.67 pounds e. .38 pounds
D ————————————————————————- 4 dollars/ x = 1.5 dollars/pound x = 4 dollars / 1.5 dollars/pound x = 2.67 pounds.
Cost of $500,000 a year to rent and buy stock. 50,000 a year at working for accounting and wants to quit what is the opportunity cost? A.500,000 B. 550,000 C.450,000 D.50,000 E. 450,000(wrong) 60,000
B
Because of scarcity, every economic decision involves A. Trade-off B. trade-in C. money payment D. increasing cost E. tax or tariff
A
- Bliff and Harvey in 1hr. what is the absolute advantage? 1 hr. Bliff Harvey Martins 9 12 Gin 6 9
Harvey does has both absolute advantage
. Opportunity cost of producing 1 pound of meat ½ of a potato
A