Economics 1

Which of the following would most likely exhibit the highest price elasticity of demand?

Crest toothpaste

In the circular flow model businesses demand products and supply resources.

False

Which of the following is a microeconomic statement?

The price of personal computers declined last year

A political candidate promises voters more funding for AIDS research and child care, and assures them they will not have to sacrifice any other goods or services to obtain the additional programs.

This may be possible if the economy has unemployed resources

An example of a public good would be a local free fireworks display.

True

Price floors benefit producers.

True

Suppose that short skirts that were fashionable in the 1990s become unfashionable in the late 2000's. If other factors were held constant, then there would be

a leftward shift in the demand curve

Unemployment and/or productive inefficiencies:

are both illustrated by a point inside the production possibilities curve

Which of these has the most elastic demand?

chuck steak

When demand falls and supply remains the same, equilibrium price__________ and equilibirum quantity__________

falls, falls

If there is a freeze in California, the price of orange in California will

increase

If Marginal Utility is zero then total utility is

maximum

"The value of the next best alternative" defines

opprtunity cost

Price ceilings result in

shortage

The most important determinant of the degree of elasticity of demand is

the availability of substitutes.