econ 1301 test 1
In the figure, ________ will shift in the demand curve from D to D1.
a scientific article published that demonstrates eating pizza is good for one's health
There are five hundred buyers in the market for cheese. If we know each individual's demand curves, to find the market demand, we must
add the quantities that each buyer will purchase at every price.
Consider the market for smart phones. Which of the following shifts the demand curve rightward?
an increase in the price of land-line phone service, a substitute for smart phones
Which of the following results in a movement upward along the supply curve for movies in theaters?
an increase in the price of movie tickets
The table above gives four production possibilities for airplanes and cruise ships. In possibility A, how many resources are devoted to the production of cruise ships?
0
In the table above, how many jackets must Mary forgo for every dress she makes?
1 1/2 jackets
The table above presents the production possibilities frontier for a nation. Using the information in the table, when moving from possibility C to D, the cost of 1 unit of a capital good in terms of the consumption goods forgone is ________ consumption goods per capital good.
10
Which of the following BEST describes macroeconomics?
It analyzes the aggregate effects on the national economy of the choices made by individuals, firms, and governments.
Soda and hot dogs are complements for one another. If a shortage of carbonated water leads to an increase in the price of soda, then the
demand for hot dogs decreases.
A bowed out production possibility frontier shows that the
opportunity cost of a good increases as more of the good is produced.
Of the following, the largest source of revenue for the federal government is the
personal income tax.
Suppose that tattoos gained immense popularity with retired people as well as college students. This gain in popularity best reflects which of the following influences on buying plans?
preferences
When the demand curve shifts rightward and the market moves to a new equilibrium, then the
quantity supplied increases.
Assume that an association of young workers has lobbied Congress to require that all workers retire once they reach the age of fifty. What impact would this law have on the nation's production possibilities frontier?
The production possibilities frontier would shift inward.
Computers and insurance coverage produced in the United States and sold to people in other nations are categorized as
U.S. exports of goods and services.
As an economy increasingly specializes in producing one good, the opportunity cost of that good increases. The opportunity cost increases because
resources are not equally productive in all activities.
In a housing market with a rent ceiling set below the equilibrium rent,
some people seeking an apartment to rent will not be able to find one.
hour review session for microeconomics instead of working at his job. His job pays him $10 per hour. Ali's opportunity cost of attending the review session is
the $10 he could have earned at his job.
Entrepreneurship, as a factor of production, refers to
the human resource that organizes labor, land, and capital.
Capital, as a factor of production, refers to
the physical goods used to produce other goods and services.
When a surplus of rice occurs,
the price of rice falls.
In the above figure, Jack's opportunity cost of producing 1 gallon of bottled water is ________ of soda.
1/2 of a gallon
The graph shows the labor market for teenagers in Atlanta. If the government sets a minimum wage of $6 an hour, the number of teenagers employed is ________.
3,000
Which of the following is a microeconomic topic? i. Gas prices increase after a hurricane hits the gulf coast. ii. Xavier starts a new business designing web pages. iii Abby decides to practice an extra hour of soccer instead of studying.
i, ii and iii
Economists classify energy and water as part of which factor of production?
land
If x increases whenever y decreases, then x and y are
negatively related.
The figure shows the production possibility frontier for a country. What is the opportunity cost per ton of rice to move from point D to E?
3000 bottles of wine
Which of the following statements is true?
Both A and B are correct.
Aaron locked himself out of his house and had to pay $40 to Brianna, who works for Lucky Locksmith, to open his door. Based on this transaction in the economy and using concepts from the circular flow model, which of the following is true?
Brianna earned income from supplying her labor services.
New technology for producing plywood is developed. Which of the figures above best illustrates this change?
Figure D
For country North, the opportunity cost incurred when 3 tractors are produced is 21 watches. For country South, the opportunity cost incurred when 5 tractors are produced is 100 watches. Which country has the comparative advantage in the production of tractors?
North
Based on their current production points, relative to India, which is France's most likely future PPF?
PPF2 with India on PPF1.
The question of "How are goods and services produced?" most closely addresses which of the following issues?
Should Ford use expensive industrial robots or inexpensive Mexican autoworkers to produce SUVs?
Increasing income tax rates will solve the "social security time bomb issue" is an example of
a positive economic statement.
If the marginal benefit of getting a college degree rises, rational people will
attend college in greater numbers.
A price floor is a price
below which a seller cannot legally sell.
The circular flow model shows that goods and services flow from
businesses to households.
Scarcity forces people to
choose among available alternatives.
The figure above shows the production possibilities frontier for a country. In order for it to produce at point E, the
country would need to acquire more resources and/or more advanced technology.
Consider a production possibility frontier with books and tables. A combination of 1000 books and 500 tables is on the frontier. Which of the following are true? i) Production of 700 books and 400 tables is attainable but inefficient. ii) Production of 1000 books and 600 tables is unattainable. iii) Production of 500 books and 1000 tables is inside the frontier.
i and ii
Rational choice
is a choice that uses the available resources to best achieve the objective of the person making the choice.
A price ceiling
is the maximum price that can legally be charged.
If a minimum wage is introduced that is above the equilibrium wage rate,
job search activity increases.
Huey has eaten two hamburgers and is considering a third. The marginal benefit in his decision is the pleasure from consuming
just the third hamburger.
A demand schedule shows
the quantities that people plan to buy at each different price when all other influences on buying plans remain the same.
Suppose the city of Chicago imposes a rent ceiling that fixes rents at $400 below the equilibrium rent. With this plan
the quantity of apartments demanded will increase.
Because of the high cost of fuel, railroads such as Union Pacific Corp and CSX Corp have increased the price they charge to haul freight. This change means that the
the supply curve for hauling freight has shifted leftward.
In the figure, if point "a" represents the original equilibrium and point "b" the new equilibrium, then
there has been an increase in supply.
The table above shows the situation in the gasoline market in Tulsa, Oklahoma. If the price of a gallon of gasoline is $2.30, then
there is a surplus of gasoline in Tulsa.