Econ

If Jane can produce 3 pairs of shoes per hour, while Bob can produce 2, then ________ has a(n) ________ advantage in producing shoes.

Jane; absolute

uppose we observe an increase in both the equilibrium price and quantity of bread. This is best explained by:

a decrease in the price of butter, a complement to bread.

The situation described in the book as "smart for one, dumb for all" occurs when:

individuals act rationally, but there are still unexploited opportunities for society as a whole.

The Incentive Principle states that a person:

is more likely to take an action if its benefit increases.p

Suppose a retail store was offering 10 percent off list prices on all goods. The benefit of the 10 percent savings is:

positively related to the list price of the good.

If total output increases from $1 trillion to $2 trillion as population increases from 100 million to 200 million, then output per person:A) doubles.

remains constant.

If the price of rubber (an input to the production of tires) increases:

the supply of tires will decrease.

The accompanying table below shows the relationship between the number of times you get your car washed each month and your total monthly benefit from car washes. Each car wash costs $15.

$15

he following accompanying table shows the relationship between the speed of a computer's CPU and its benefits and costs. Assume that all other features of the computer are the same (that is, CPU speed is the only source of variation), and only the CPU speeds listed below are available for purchase.

$200.

Refer to the accompanying figure. The equilibrium price is ________, and the equilibrium quantity is

$35; 20

he following accompanying table shows the relationship between the speed of a computer's CPU and its benefits and costs. Assume that all other features of the computer are the same (that is, CPU speed is the only source of variation), and only the CPU speeds listed below are available for purchase.

$400.

The accompanying table below shows how total donations, average donations, total labor costs and average labor costs vary depending on the number of employees State U hires for its fundraising activities.

$51,963.

For the fall semester, you had to pay a nonrefundable fee of $600 for your meal plan, which gives you up to 150 meals. If you eat 100 meals, your average cost for a meal is:

$6.

Suppose it takes Dan 5 minutes to make a sandwich and 15 minutes to make a smoothie, and it takes Tracy 6 minutes to make a sandwich and 12 minutes to make a smoothie. What is the opportunity cost to Dan of making a sandwich?

1/3 of a smoothie

A firm pays Pam $40 per hour to assemble personal computers. Each day, Pam can assemble 4 computers if she works 1 hour, 7 computers if she works 2 hours, 9 computers if she works 3 hours, and 10 computers if she works 4 hours. Pam cannot work more than 4 hours day. Each computer consists of a motherboard, a hard drive, a case, a monitor, a keyboard, and a mouse. The total cost of these parts is $600 per computer. If the firm sells each computer for $625, then how many hours a day should the firm employ Pam to maximize its net benefit from her employment?

3 hours

You won a free ticket to see the latest Star Wars movie this Friday night (which you can costlessly resell for its face value of $15). Your favorite band is also performing on Friday and is your only alternative activity. Friday is your last chance to see either the movie or the band. Tickets to see your favorite band cost $30, and on any given day, you would be willing to pay as much as $50 for a ticket. Based on this information, what is your opportunity cost of going to see the Star Wars movie on Friday

35

Matt has decided to purchase his textbooks for the semester. His options are to purchase the books online with next day delivery at a cost of $175, or to drive to campus tomorrow to buy the books at the university bookstore at a cost of $170. Last week he drove to campus to buy a concert ticket because they offered 25 percent off the regular price of $16. The benefit to Matt of buying his books at the university bookstore instead of online is:

5

Refer to the accompanying table. Julia's opportunity cost of making a pie is:

5/6 of a cake.

For the fall semester, you had to pay a nonrefundable fee of $600 for your meal plan, which gives you up to 150 meals. If you eat all of the meals, your average cost for a meal is:

6.

Efficiency is an important social goal because:

Efficiency is an important social goal because:

Which of the following jobs is least likely to be outsourced?

Flipping hamburgers

All of the following are examples of positive statements EXCEPT:

High rates of economic growth are undesirable because of the destruction caused to the environment.

Josh wants to go to the football game this weekend, but he has a paper due on Monday. It will take him the whole weekend to write the paper. Josh decides to stay home and work on the paper. According to the Scarcity Principle, the reason Josh doesn't go to the game is that:

Josh can't go the game and finish the paper.

Suppose Cathy and Lewis work in a bakery making pies and cakes. Suppose it takes Cathy 1.5 hours to make a pie and 1 hour to make a cake, and suppose it takes Lewis 2 hours to make a pie and 1.5 hours to make a cake. Which of the following statements is correct?

Lewis should specialize in pies, and Cathy should specialize in cakes.

Refer to the accompanying figure. Which of the following is true?

Points B, C, E and F are efficient

Which of the following statements is positive?

When the Federal Reserve increases the money supply, interest rates decrease.

The buyer's reservation price for a particular good or service is the:

argest price the buyer would be willing to pay for it.

According to the accompanying table, Julia has the absolute advantage in making:

both pies and cakes.

The marginal cost of an activity is the:

change in the total cost of the activity that results from carrying out an additional unit of the activity.

If a nation restricts imports, it will:

decrease the total value of goods and services produced in that nation.

Refer to the accompanying table. Based on their comparative advantages, Pat should specialize in ________, and Corey should specialize in ________.

delivering pizza; making pizza

A cost of aggregation is that:

details about individual households and firms are lost.

To aggregate 300 tons of steel, 5,000 bushels of wheat, and 1 million barrels of crude oil, economists add together the ________ of the three products

dollar value

A decrease in the federal income tax is an example of ________ policy.

fiscal

According to the Principle of Increasing Opportunity Cost, in expanding the production of any good, we should start by utilizing the resources that:

have the lowest opportunity cost.

Suppose sport utility vehicles get poor gas mileage compared to other available cars. If the price of gasoline increases, then one would expect:

he demand for sport utility vehicles to decrease.

As the differences in opportunity costs between the U.S. and its trading partners increase, the potential gains from specialization and trade ________.

increase

A decrease in the price of pizza will lead to a(n):

increase in the quantity of pizza demanded.

The Cost-Benefit Principle indicates that an action should be taken if:

its extra benefit is greater than or equal to its extra cost.

If supply increases and demand decreases, the new equilibrium price will be ________ and the new equilibrium quantity will be ________.

lower; uncertain

Government actions designed to affect the performance of the economy as a whole are called ________ policies.

macroeconomic

Refer to the accompanying table. According to the table, Corey has the absolute advantage in:

making pizza.

The extra benefit that results from carrying out one additional unit of an activity is the ________ of the activity.

marginal benefit

The extra cost that results from carrying out one additional unit of an activity is the ________ of the activity

marginal cost

The number of U.S. households with access to the Internet has grown is growing rapidly. Compared to 50 years ago, one would predict that when considering a major purchase, people today will gather:

more information because the Internet has lowered the cost of gathering information.

ccording to the accompanying table, Martha has the absolute advantage in making:

neither pies nor cakes.

The Scarcity Principle tells us ________, and the Cost-Benefit Principle tells us ________.

that choices must be made; how to make good choices

Decisions to reduce the money supply are made by ________ and are an example of ________ policy.A) the President; monetary

the Federal Reserve; monetary

If supply and demand both decrease, the new equilibrium price will be ________ and the new equilibrium quantity will be ________.

uncertain; lower

One concern regarding the North American Free Trade Agreement (NAFTA) was that it would lead:

unskilled workers in the United States to lose their jobs.