Practice test

Question 1

Some football fans leave the game at the two minute warning, especially when the outcome is pretty assured to avoid the post game traffic. These fans are.

Answer 1

Making a marginal decision by comparing the cost of living early to the benefit of leaving early

Question 2

Anaya has a Calculus exam tomorrow. However, a free lecture by one of her favorite authors is taking place this evening. I am Anaya decides to attend the lecture instead of studying for her exam. Anayas opportunity cost of attending the lecture is:

Answer 2

The transportation and time cost of getting to the lecture itself plus the reduction in her physics exam grade as a result of not studying tonight

Question 3

Which of the following statements describes efficiency?
One situation in which producers make the highest profit possible
Two a situation in which we cannot produce more of one good without producing less of another good.
Three. A situation in which we produce the goods and services that people value most highly.

Answer 3

Two and three

Question 4

The cost of postponing, the Tokyo Olympics, 2021 in the week of COVID-19 virus outbreak———-an opportunity cost of hosting the 2020 Olympic games——-.

Answer 4

Is; if the cost of postponing, the Tokyo games would not occur and less Tokyo is hosting the 2020 Olympic games

Question 5

——— forces us to make choices

Answer 5

Scarcity

Question 6

The environmental protection agency regulates, how much pollution of factory commit. Which economic principle does the best represent.

Answer 6

When markets don’t achieve efficiency, government intervention can improve society is welfare?

Question 7

What is true about economic equilibrium?

Answer 7

An economic situation is an equilibrium, and no individual would be better off taking a different action

Question 8

Sabrina has gone out to lunch three times this week. She has some extra money, so she decides to go out for lunch at fourth time. Which economic principle does the statement best represent

Answer 8

How much is a decision at the margin?

Question 9

In general, when consumers wish to purchase markets and services that are readily available, economy tends to see inflation. Which economic principle does the statement best represent

Answer 9

Overall spending sometimes gets out of line with the economies, productive capacity

Question 10

Opportunity cost is

Answer 10

The value of the best alternative for gone in making a choice between alternatives

Question 11

Supposed to take the train to work every day. Because your drive to the train station from your house, you must allow for time to park. However, since the train station has free parking for commuters, you have to have difficulty finding a spot to take the train at the time you wish. To solve this problem, all commuter should be:

Answer 11

Required to pay for parking

Question 12

Mini parking lots have pacifically located spaces for individuals with disabilities. Further, the provision of specialized parking passes for those with disabilities, often requires that they would be more space available, then can be used at any given time. As a result, many of these parking spaces, which takes space that could be used for regular parking, her often vacant. This scenario illustrates the:

Answer 12

Trade-off between efficiency and equity

Question 13

Jacob is an economist working at the federal reserve bank of New York. We’re having lunch with his mother. She asked him to tell her what efficiency means as a proud son Jacob tell his mother that economists define efficient use of resources as a situation in which.

Answer 13

One person can be made better off, but only by making another person worse off

Question 14

According to economic models of trade, when the United States and Canada trade

Answer 14

Both Canada and the United States will be better off

Question 15

The notion of decisions at the margin concerns

Answer 15

Making incremental choices

Question 16

The circular flow diagram shows the flow of——— the flow of——— and the flow of———.

Answer 16

Money, goods and services, factors of production

Question 17

As long as people have different———, everyone has a comparative advantage in something

Answer 17

Opportunity costs

Question 18

And one day quiche, I can bake 10 muffins or mix 15 glasses of passion, fruit juice. His friend Alicia can bake 10 muffins or mixed 10 glasses of passion, fruit juice. His other friend Evan can make 10 muffins or mix 20 glasses of passionfruit juice. Who has the lowest opportunity cost in muffin production?

Answer 18

Alicia

Question 19

Erin and Mady can both produce beer and wine. Erin has a comparative advantage in the production of beer if.

Answer 19

The amount by which Erin must reduce the production of wine, is less than the amount by which Betty must reduce the production of wine to produce an additional unit of beer 

Question 20

The production possibility frontier, PPF illustrates

Answer 20

The maximum quantity of one go to that can be produced, given the quantity of the other good produced

Question 21

If they spend all night writing poems, Lucy can write 10 pounds and Isabel can write five. If they spend all night making necklaces, Lucy can make six and Isabella can make for. We know——-has a comparative advantage in———.

Answer 21

Lucy poems

Question 22

If the opportunity cost of manufacturing tractors is lower in the United States than in the United Kingdom, and the opportunity, cost of manufacturing running shoes, is higher in the United States than in the United Kingdom, then the United States will:

Answer 22

Import running shoes from the United Kingdom and export tractors to the United Kingdom

Question 23

A two dimensional production possibility frontier illustrates the——— facing an economy that———— only two goods

Answer 23

Trade-offs, produces

Question 24

If the United States in Germany, each devote half of its resources to the production of barley and hat to the production of aluminum, then they combined total production of barley will be blank tons, and the combined total production of aluminum will be blank tons. If the United States spend all of its available resources to produce barley, it can produce 500 tons if it uses all of its resources to produce aluminum, it can produce 250 tons if Germany spent all of its resources producing barley. It can produce 400 tons and if it’s spend all of its resources producing aluminum it can produce 400 tons

Answer 24

450, 325

Question 25

Which choice represents a possible trade based on specialization and comparative advantage? The United States produces 100 tons of corn for zero steel or 0 corn for 100 steel.
Germany produces 50 tons of corn, 40 steel or zero corn for 100 tons of steel

Answer 25

Do United States would trade 1 ton of corn to Germany for 1.5 tons of steel.

Question 26

Marcy spent $25 on toys for a cat to play with. This is an example of.

Answer 26

Household, buying goods and services in the product market

Question 27

Statements that make value judgments are

Answer 27

Normative

Question 28

The Chicago tribune recently reported that the price of new cars, and normal good, has increased, and that the quantity of new car sold has risen. The new price and quantity could have been caused by.

Answer 28

Increase in buyers incomes

Question 29

Which factors would result in a move along a demand curve

Answer 29

Amazon opens more off-line store fronts to complement it online component

Question 30

Suppose the manager convenience store. If macaroni and cheese and inferior, good, what do you supposed to happen to the price and quantity sold of macaroni and cheese as income falls during a recession?

Answer 30

The price and quantity would both increase

Question 31

A major impact in the production of vanilla ice cream is cream. A——-in the price of cream will——-the quantity of vanilla ice cream supplied as well as——— the supply of vanilla ice cream

Answer 31

Increase, decrease, decrease

Question 32

Which factor would shift the demand curve for new computers to the right?

Answer 32

An increase in student enrollment in college

Question 33

A recent news story reported that the organization of petroleum exporting countries is expected to increase the supply of oil next summer. Summer is traditionally a time of increased demand for oil because of vacation travel. What would be the combined effect of these two events on the market for gasoline.

Answer 33

An increase in the quantity and unpredictable change in the price

Question 34

Equilibrium quantity will fall, if

Answer 34

Supply and demand both decrease

Question 35

A change in quantity demanded is a movement along the demand curve, and a change in demand is a shift of the demand curve

Answer 35

True

Question 36

The market for kidney beans is initially and equilibrium, with an upward sloping supply curve in a downward sloping demand curve. Because of mad cow disease, producers, decide to replace bonemeal with kidney beans and cattle feed. The likely affect is that the.

Answer 36

Equilibrium, price and quantity of kidney beans will rise

Question 37

Which factor will not cause an increase in the supply of smart phones

Answer 37

An increase in the price of inputs used to produce a smart phones

Question 38

The market for wheat in North Dakota is considered to be competitive. This means that there are——-buyers, and——-sellers of corn in North Dakota

Answer 38

Many, many

Question 39

If the market for chimichangas, a normal, good, you observe that the equilibrium price and quantity have decreased. This can be caused only by.

Answer 39

A decrease in the income of people who love eating chimichangas

Question 40

Ron and Remi each consume two loaves of bread at the current price. If a Ron values each loaf of bread less than Remy values each loaf of bread then

Answer 40

Remys consumer surplus is greater than Ron’s

Question 41

If you pay exactly your willingness to pay, then your consumer surplus is

Answer 41

Zero

Question 42

Along given downward, sloping demand curve, a decrease in price of a Good will ——-the consumer surplus

Answer 42

 Increase

Question 43

The number of seats at hard rock Stadium is fixed at 70,000. Suppose the team raises the price of tickets from $30 at which all seats are sold out to $40 and it sells 60,000 tickets. The price would cause a change in consumer surplus of.

Answer 43

$650,000 (I believe it’s $100,000)

Question 44

If the price of a good is below, the competitive equilibrium price, then

Answer 44

Farms produce less than the efficient quantity

Question 45

Assume a positive slope to supply curve, and a negative slept demand curve if there is an increase in supply, the total surplus

Answer 45

Will increase

Question 46

The establishment of—— is a system in which valuable items and economy have specific owners who can dispose of them as they choose

Answer 46

Property rights

Question 47

Which statements are false about market failures?
1 they arise from property rights are clearly defined
2 they arise, when information is available to all decision makers
3 they arise, when external costs are not considered in the production decisions by producers

Answer 47

One and two