C211 3rd Attempt Comp 5

A tax on an imported good is called a a. tariff. b. quota. c. trade tax. d. supply tax.

A

All else equal, what happens to consumer surplus if the price of a good increases? a. Consumer surplus decreases b. Consumer surplus increases c. Consumer surplus is unchanged d. Consumer surplus may increase, decrease, or remain unchanged

A

Figure 7-9 Refer to Figure 7-9. If the price were P3, consumer surplus would be represented by the area a. A+B+C+D+H+F. b. A+B+C. c. D+H+F. d. A.

A

Figure 7-9 Refer to Figure 7-9. The equilibrium price is a. P2. b. P4. c. P3. d. P1.

A

Producer surplus is a. the amount a seller is paid minus the cost of production. b. the opportunity cost of production minus the cost of producing goods that go unsold. c. measured using the demand curve for a good. d. always a negative number for sellers in a competitive market.

A

The percentage change in the price level from one period to another is called the a. inflation rate. b. unemployment rate. c. growth rate. d. GDP deflator.

A

A farmer produces oranges and sells them to Fresh Juice, which makes orange juice. The oranges produced by the farmer are called a. final goods. b. intermediate goods. c. inventory goods. d. transitory goods.

B

Figure 7-8 Refer to Figure 7-8. Total surplus can be measured as the area a. JNK. b. JNL. c. JNML.

B

Figure 7-9 Refer to Figure 7-9. At equilibrium, consumer surplus is represented by the area a. D+H+F. b. A+B+C. c. A+B+C+D+H+F. d. A.

B

Figure 7-9 Refer to Figure 7-9. At equilibrium, total surplus is represented by the area a. A+B+C+D+H+F+G+I. b. A+B+C+D+H+F. c. A+B+C. d. A+B+D+F.

B

In a simple circular-flow diagram, total income and total expenditure are a. equal only when the government purchases no goods or services. b. always equal because every transaction has a buyer and a seller. c. never equal because total income always exceeds total expenditure. d. seldom equal because of the ongoing changes in an economy's unemployment rate.

B

Assume, for Vietnam, that the domestic price of textiles without international trade is lower than the world price of textiles. This suggests that, in the production of textiles, a. other countries have a comparative advantage over Vietnam and Vietnam will export textiles. b. Vietnam has a comparative advantage over other countries and Vietnam will import textiles. c. Vietnam has a comparative advantage over other countries and Vietnam will export textiles. d. other countries have a comparative advantage over Vietnam and Vietnam will import textiles.

C

Figure 7-6 Refer to Figure 7-6. When the price is P2, producer surplus is a. D+G. b. A+C. c. A+B+C. d. A.

C

Figure 7-9 Refer to Figure 7-9. At equilibrium, producer surplus is represented by the area a. F. b. F+G. c. D+H+F. d. D+H+F+G+I.

C

GDP is defined as the a. value of all final goods and services produced by the citizens of a country, regardless of where they are living, in a given period of time. b. value of all goods and services produced by the citizens of a country, regardless of where they are living, in a given period of time. c. value of all final goods and services produced within a country in a given period of time. d. value of all goods and services produced within a country in a given period of time.

C

When economists talk about growth in the economy, they measure that growth as the a. percentage change in nominal GDP from one period to another. b. absolute change in nominal GDP from one period to another. c. percentage change in real GDP from one period to another. d. absolute change in real GDP from one period to another.

C

When the nation of Worldova allows trade and becomes an exporter of silk, a. residents of Worldova who produce silk become worse off; residents of Worldova who buy silk become better off; and the economic well-being of Worldova rises. b. residents of Worldova who produce silk become better off; residents of Worldova who buy silk become worse off; and the economic well-being of Worldova falls. c. residents of Worldova who produce silk become better off; residents of Worldova who buy silk become worse off; and the economic well-being of Worldova rises. d. residents of Worldova who produce silk become worse off; residents of Worldova who buy silk become better off; and the economic well-being of Worldova falls.

C

Figure 7-6 Refer to Figure 7-6. When the price falls from P2 to P1, producer surplus a. decreases by an amount equal to A+C. b. decreases by an amount equal to C. c. increases by an amount equal to A+B. d. decreases by an amount equal to A+B

D

On a graph, consumer surplus is represented by the area a. below the demand curve and to the right of equilibrium price. b. between the demand and supply curves. c. below the price and above the supply curve. d. below the demand curve and above price.

D