Practice test Flashcards
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.
Making a marginal decision by comparing the cost of living early to the benefit of leaving early
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:
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
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.
Two and three
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——-.
Is; if the cost of postponing, the Tokyo games would not occur and less Tokyo is hosting the 2020 Olympic games
——— forces us to make choices
Scarcity
The environmental protection agency regulates, how much pollution of factory commit. Which economic principle does the best represent.
When markets don’t achieve efficiency, government intervention can improve society is welfare?
What is true about economic equilibrium?
An economic situation is an equilibrium, and no individual would be better off taking a different action
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
How much is a decision at the margin?
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
Overall spending sometimes gets out of line with the economies, productive capacity
Opportunity cost is
The value of the best alternative for gone in making a choice between alternatives
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:
Required to pay for parking
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:
Trade-off between efficiency and equity
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.
One person can be made better off, but only by making another person worse off
According to economic models of trade, when the United States and Canada trade
Both Canada and the United States will be better off
The notion of decisions at the margin concerns
Making incremental choices
The circular flow diagram shows the flow of——— the flow of——— and the flow of———.
Money, goods and services, factors of production
As long as people have different———, everyone has a comparative advantage in something
Opportunity costs
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?
Alicia
Erin and Mady can both produce beer and wine. Erin has a comparative advantage in the production of beer if.
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 
The production possibility frontier, PPF illustrates
The maximum quantity of one go to that can be produced, given the quantity of the other good produced
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———.
Lucy poems
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:
Import running shoes from the United Kingdom and export tractors to the United Kingdom
A two dimensional production possibility frontier illustrates the——— facing an economy that———— only two goods
Trade-offs, produces
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
450, 325
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
Do United States would trade 1 ton of corn to Germany for 1.5 tons of steel.
Marcy spent $25 on toys for a cat to play with. This is an example of.
Household, buying goods and services in the product market
Statements that make value judgments are
Normative
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.
Increase in buyers incomes
Which factors would result in a move along a demand curve
Amazon opens more off-line store fronts to complement it online component
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?
The price and quantity would both increase
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
Increase, decrease, decrease
Which factor would shift the demand curve for new computers to the right?
An increase in student enrollment in college
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.
An increase in the quantity and unpredictable change in the price
Equilibrium quantity will fall, if
Supply and demand both decrease
A change in quantity demanded is a movement along the demand curve, and a change in demand is a shift of the demand curve
True
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.
Equilibrium, price and quantity of kidney beans will rise
Which factor will not cause an increase in the supply of smart phones
An increase in the price of inputs used to produce a smart phones
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
Many, many
If the market for chimichangas, a normal, good, you observe that the equilibrium price and quantity have decreased. This can be caused only by.
A decrease in the income of people who love eating chimichangas
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
Remys consumer surplus is greater than Ron’s
If you pay exactly your willingness to pay, then your consumer surplus is
Zero
Along given downward, sloping demand curve, a decrease in price of a Good will ——-the consumer surplus
 Increase
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.
$650,000 (I believe it’s $100,000)
If the price of a good is below, the competitive equilibrium price, then
Farms produce less than the efficient quantity
Assume a positive slope to supply curve, and a negative slept demand curve if there is an increase in supply, the total surplus
Will increase
The establishment of—— is a system in which valuable items and economy have specific owners who can dispose of them as they choose
Property rights
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
One and two
