Microeconomics test 1

Which of the following is a positive economic statement

If the price of iphones falls, a larger quantity of iphones will be purchased

The coffee nook, is small cafe near campus, sells cappuccinos for 2.50 and Russian tea cakes for 1.00 each. What is the opportunity cost

2/5 of a cappuccino

If the price of milk was 2.50 a gallon and its now 3.25 a gallon. What is the percentage change in price

30

Which of the following statements about scarcity is true?

Refers to the situation in which unlimited wants exceed limited resources.

A grocery store sells a bag of potatoes at a fixed price 2.30. Which of the following is a term used by economist to describe the money received from the sale of an additional bag of potatoes

a marginal revenue

Economist assume that individuals

are rational and respond to incentives

_____ increases economic efficiency because it forces firms to produce and sell goods and services as long as the additional benefit to consumer is greater than the additional cost of production

competition

Mirco is the study of

how households and firms make choices

If a straight line passes through the point x=14 and y=3 and also through the point of x=4 and y=10, the slope of this line is

negative 7/10

The highest valued alternative that must be given up to engage in an activity is the definition of

opportunity cost

Who in a centrally planned economy decides what goods and services will be produced with the scarce resources available in that economy

the government

The attainable production points on a production possibilities curve are

the points along and and inside the production possibilities frontier