AP Micro Quiz #3 MC

Which of the following situations is a good NOT scarce? A. Consumers give up nothing to obtain more of the good B. Consumers can purchase as much of a good as they wan at its current market price C. Large quantities of the good are available in the product market D. There is a surplus of the good at some positive price E. There is a shortage of the good at some positive price

A. Consumers give up nothing to obtain more of the good

Assume both Italy and Greece produce only two goods: wine and olive oil. If Italy holds a comparative advantage in the production of wine, then which of the following statements is NOT true? A. Italy must hold an absolute advantage in the production of wine B. Greece holds a comparative advantage in the production of olive oil C. Italy's opportunity cost of producing one additional unit of wine is lower than Greece's D. Greece's opportunity cost of producing one additional unit of olive oil is lower than Italy's E. If trade is open between them, these two countries have an incentive to trade

A. Italy must hold an absolute advantage in the production of wine

Which of the following could shift the short run supply curve for strawberries? A. A decrease in the consumption of strawberries B. An increase in the price of strawberries C. A strike by all farmworkers D. An increase in household incomes E. An announcement of a study that shows the health benefits of eating strawberries

C. A strike by all farmworkers

If an unusually cold summer destroyed a large portion of the bee population, the equilibrium price and quantity of honey produced by bees will most likely change in which of the following ways? Price Quantity A. Increase Increase B. Increase Decrease C. Increase No Change D. Decrease Decrease E. No Change Decrease

B. Increase Decrease

If shirts and ties are complements and if the price of shirts increases due to an increase in the price of cotton, which of the following is most likely to occur in the market for ties in the short run? A. The equilibrium price and quantity of ties will increase B. The equilibrium price and quantity of ties will decrease C. The equilibrium price of ties will increase and the equilibrium quantity will decrease D. The supply of ties will increase E. The demand for ties will increase

B. The equilibrium price and quantity of ties will decrease

Last year, 17 million tons of beans were sold for $300 per ton. This year, 17 million tons of beans were sold for $285 a ton. Which of the following changes in demand and supply could have caused this outcome? (Hint: draw a graph or two) Demand Supply A. Increase Increase B. Increase Decrease C. Decrease Increase D. Decrease Decrease E. Increase No change

C. Decrease Increase

Which of the following would most likely result in (cause) a decrease in the equilibrium price of oranges? A. The weather during this orange-growing season is not as good as it was last year B. The price of apples, a substitute for oranges, is higher this year than last year C. New studies suggest that oranges contain traces of cancer-causing substances due to pesticide residue D. A tree-killing fungus spreads through orange orchards across the country E. Firms in the orange industry launch an effective advertising campaign

C. New studies suggest that oranges contain traces of cancer-causing substances due to pesticide residue

If growing corn becomes more profitable than growing wheat, which of the following will occur? A. The supply of corn will decrease B. The price of wheat will decrease C. The price of corn will decrease D. The demand for wheat will increase E. The demand for corn will increase

C. The price of corn will decrease

Which of the following will most likely happen in the market for good X if the price of good X decreases? A. The supply of good X will decrease B. The demand for good X will increase C. The quantity demanded for good X will increase D. The demand will decrease and the supply will increase. E. The quantity supplied for good X will increase

C. The quantity demanded for good X will increase

In college, Mr. Wedge ate Ramen noodles daily. How that he is a teacher at Collegiate School and earns less income than he did as a starving college student, he eats more Ramen noodles than ever before. This is because Ramen noodles are an example of A. A normal good B. A Giffen good C. A superior good D. An inferior good E. A positive good

D. An inferior good

On a demand curve, moving to the left of the curve from two points would most likely be caused by A. an increase in the price of good Z, a substitute B. an increase in consumers' income C. a decrease in consumers' income D. a decrease in the production costs for good X E. a decrease in the supply of good X

D. a decrease in the production costs for good X

Assume that people like onions on their hamburgers. If the supply of hamburgers decreases, the demand for onions will most likely A. remain unchanged because hamburgers and onions are differentiated goods B. increase because hamburgers and onions are substitutes C. increase because hamburgers and onions are complements D. decrease because hamburgers and onions are complements E. decrease because hamburgers and onions are substitutes

D. decrease because hamburgers and onions are complements