ECON 102, Finals Review

you decide to take a vacation and the trip cost you $1,000. While you are on vacation you do not report to work where you could have earned $550. The opportunity cost off the vacation is____

$1,550

Dakota is willing to pay $20 to see Independence Day for the 4th time he finds a theater showing Independence Day for $5 Dakota's consumer surplus is

$15

If the price of a burger decreases by 5% and as a result the quantity of burgers demanded increase by 8% the price elasticity of demand equals:

1.60

which of the following definitely causes a fall in the equilibrium price

A decrease in demand combined with the increase in Supply

which of the following factors will make the demand for a product more elastic:

A long time period has elapsed since the product's price changed

a price control which is below the equilibrium point results in

A shortage

The following question is not a microeconomic question?

Can the Federal Reserve keep income growing by cutting interest rates

Assume that beef and pork are substitutes for consumers. There is a drought in the cattle grazing area. The drought will cause the

Demand curve for pork the shift rightward

The more elastic the demand for a good, the:

Less a sales tax raises the price paid by the buyers.

Pizza and hamburgers are substitutes for consumers. A fall in the price of pizza____ the price hamburger and____ the quantity of hamburgers

Lowers; decreases

the price of pork is $5 per pound while the price of beef is $10 per pound the relative price of per pork in terms of beef is (change in pork/change in beef)_____

One and a half

Suppose that there is an increase in input (resources) prices. We would expect:

Supply to decrease

a good apple harvest Jeep in good weather leads to a lower price of apples. this happens because

The Apple Supply shifted to the right

The supply of oil is more elastic than the demand for oil. If oil is taxed $10 per barrel, how will the tax be divided between the buyers and the sellers?

The buyers will pay more of the tax than the sellers

over the past decade technological improvements that have lowered the cost of producing an automobile have increased

The supply but not the demand for automobiles

a good with vertical demand curve implies a change (shift) in Supply

Will not affect the equilibrium quantity

in the market for books the supply of books will decrease if any of the following occur except:

a decrease in the price of a book

in a free market system____

all resources applications are guided by the market price

if the demand curve for orange is downward sloping straight line, the price elasticity of demand will increase the:

higher the price of oranges

the quantity of cars that people plan to buy this month depends on all of the following except:

how much car dealers pay their sales people

Which of the following is a positive statement

increase in gas prices leads people to carpool more

an increase in the number of fast food restaurants_____

increase the supply of fast food meals

which of the following is the most accurate statement about production possibilities: an economy can produce at any point on or inside the production possibilities Frontier but not

outside the frontier

a shortage causes the

price to rise

which of the following topics would be studied in microeconomics course

rent ceilings impact the supply of apartments.

a technological Improvement lowers the cost of producing coffee. at the same time consumers preference for coffee increases. The equilibrium price of coffee will____

rice fall or stay the same depending on the relative size of the shift in the demand and supply curve

The entire market demand curve is

the horizontal sum of all consumers demand

a fall in the price of a good causes producers to reduce the quantity of a good they are willing to produce. This fact illustrates

the law of supply

in a market economy people decides whether to produce and exchange goods based on____

the price of the good

which of the following does not hold constant while moving along the supply curve

the price of the good itself

if both demand and Supply increase what will be the effect on the equilibrium price and the quantity:

the quantity will increase but the price could either rise fall or remain the same

The rising price of oil lead to higher oil revenues for oil-producing Nations. This suggests that___

the world demand for oil is inelastic

there is no rent control in Last Vegas apartment Market what will happen if local government imposes a rent control__

there will be a shortage of apartments

a good with horizontal supply curve implies that a change or shift in demand:

will not affect the equilibrium price

a good with horizontal demand curve has a demand

with a price elasticity of demand equals infinity

increase in Subway fares in New York City will boost your expenditure or spending on subway rides if:

your demand for Subway rides is inelastic