Econ Module 4

Table 2: Production Information Tacos Enchiladas Paige 15 6 Gage 9 3 Total 24 9 Using Table 2, if the price of enchiladas is $3, what price of tacos would Gage require to start producing $1.5 $0.5 $1.00 $2.00

$1.00

table 1: Production Information Shirts Pants Katherine 12 6 Josh 4 10 16 16 Figure 1: Using Table 1 and Figure 1, and assuming the price of a shirt is $50, then price P1 in the figure, which is the lowest price at which some pants will be supplied is $50 $25 $125 $20 $15

$20

Product & Production per hour: Cooks Tacos Enchiladas Bree 12 6 Will 4 16 16 22 The opportunity cost for Will to make an enchilada 16 0.25 0.5 4 2

.25

Product & Production per week: Producer Shirts Pants Dylan 12 9 Justin 4 8 16 17 The opportunity cost for Justin to make a pair of pants is 2 8 4 1.5 .5

.5

Table 1: Production Information Shirts Pants Katherine 12 6 Josh 4 10 16 16 Figure 1: Using Table 1, what is the opportunity cost for Katherine to produce a shirt? .5 pairs of pants. .4 pairs of pants. 2 pairs of pants. 2.5 pairs of pants.

.5 pairs of pants.

Tacos Enchiladas David 14 7 Kourtelynne 8 5 22 12 The opportunity cost for Kourtelynne to produce a taco is 0.25 0.625 2 1.6

0.625

Product & Production per week: Producer Shirts Pants Dylan 12 9 Justin 4 8 16 17 The opportunity cost for Dylan to make a shirt is 9 0.5 12 0.75 1.33

0.75

Serena Haley Bracelets 8 9 Necklaces 16 12 Table 2-6 shows the output per week of two jewelers, Serena and Haley. They can either devote their time to making bracelets or making necklaces. Refer to Table 2-6. What is Haley's opportunity cost of making a bracelet? 3 bracelets 1 1/3 necklaces 2 necklaces 3/4 of a bracelet

1 1/3 necklaces

Table 1: Production Information Tacos Enchiladas Paige 10 4 Gage 6 9 16 13 Figure 1: Using the production information in Table 1 and referring to Figure 1, if Paige is the producer then, respectively, the values on her PPF of X1 and Y1 are: 13 and 16 4 and 10 6 and 9 16 and 13 10 and 4

10 and 4

Table 4: Production Information Tacos Enchiladas Ben 12 4 Madysen 5 10 17 14 Figure 4: Using the production information in Table 1 and referring to Figure 1, if Madysen is the producer then, respectively, the values of X1 and Y1 are: 4 and 12 12 and 4 10 and 5 5 and 10 17 and 14

10 and 5

Table 4: Production Information Tacos Enchiladas Ben 12 4 Madysen 5 10 17 14 Figure 4: Using the production information in Table 4 and referring to Figure 4, if Ben is the producer then, respectively, the values of X1 and Y1 are: 17 and 14 10 and 5 4 and 12 5 and 10 12 and 4

12 and 4

Table 3: Production Information Shirts Pants Quinn 12 8 Knox 15 5 27 13 Figure 3: Using Table 3 and Figure 3, how many shirts will be supplied when the price of shirts reaches P1 ? 15 12 5 27 8

15

Table 2: Production Information Tacos Enchiladas Katherine 18 6 Josh 15 10 33 16 Figure 2: Figure 2 shows two lines showing the individual production possibilities for the individuals in Table 2, Katherine and Josh. Based on the information in Table 2, and using Figure 2, the value of x2 is 15 18 16 33

18

able 3: Production Information Tacos Enchiladas David 14 7 Kourtelynne 8 5 22 12 The opportunity cost for David to produce an enchilada is 0.625 2 1.6 0.25 Not enough information has been provided to answer the question.

2

Serena Haley Bracelets 8 9 Necklaces 16 12 Table 2-6 shows the output per week of two jewelers, Serena and Haley. They can either devote their time to making bracelets or making necklaces. Refer to Table 2-6. What is Haley's opportunity cost of making a necklace? 1 1/3 necklaces 2 necklaces 3 bracelets 3/4 of a bracelet

3/4 of a bracelet

Production per day (Bushels): Pickers Apples Cherries Taylor 8 2 Jeff 6 3 14 5 The opportunity cost for Taylor to pick a bushel of cherries is 0.25 2 0.5 4 8

4

Table 2: Production Information Tacos Enchiladas Katherine 18 6 Josh 15 10 33 16 Figure 2: Figure 2 shows two lines representing the individual production possibilities for the individuals, Katherine and Josh. Based on the information in Table 2, and using Figure 2, the value of Y1 is 10 Not enough information has been provided to answer the question. 15 6 16

6

Table 1: Production Information Tacos Enchiladas Paige 10 4 Gage 6 9 16 13 Figure 1: Using the production information in Table 1 and referring to Figure 1, if Gage is the producer then, respectively, the values on his PPF of X1 and Y1 are: 16 and 13 13 and 16 10 and 4 6 and 9 4 and 10

6 and 9

an increase in the price of pineapples will result in a larger quantity of pineapples supplied. a decrease in the demand for pineapples. a smaller quantity of pineapples supplied. an increase in the supply of pineapples.

a larger quantity of pineapples supplied.

A decrease in the price of GPS systems will result in a decrease in the demand for GPS systems. a larger quantity of GPS systems supplied. a smaller quantity of GPS systems supplied. an increase in the supply of GPS systems.

a smaller quantity of GPS systems supplied.

Which of the following would cause a decrease in the supply of milk? an increase in the price of cookies (assuming that milk and cookies are complements) an increase the price of a product that producers sell instead of milk an increase in the number of firms that produce milk a decrease in the price of milk

an increase the price of a product that producers sell instead of milk

A supply schedule is a curve that shows the relationship between the price of a product and the quantity of the product supplied. is the relationship between the supply of a product and the cost of producing the product. is a table that shows the relationship between the price of a product and the quantity of the product supplied. is a table that shows the relationship between the price of a product and the quantity of the product that producers and consumers are willing to exchange

is a table that shows the relationship between the price of a product and the quantity of the product supplied.

The supply curve for watches shows the supply of watches consumers are willing and able to buy at any given price. is downward sloping. shows the relationship between the price of watches and the quantity of watches supplied. shows the relationship between the quantity of watches firms are willing and able to supply and the quantity of watches consumers are willing and able to purchase.

shows the relationship between the price of watches and the quantity of watches supplied.

An increase in the quantity of a product supplied is caused by an increase in the price of the product True False

True

Quantity supplied refers to the amount of a good or service that a firm is willing and able to supply at a given price. True False

True

All else equal, as the price of a product falls, the quantity supplied increases. True False

False

What is the difference between an "increase in supply" and an "increase in quantity supplied"? An "increase in supply" means the supply curve has shifted to the right while an "increase in quantity supplied" refers to a movement along a given supply curve in response to an increase in price. There is no difference between the two terms; they both refer to a movement along a given supply curve. An "increase in supply" means the supply curve has shifted to the right while an "increase in quantity supplied" means at any given price supply has increased. There is no difference between the two terms; they both refer to a shift of the supply curve.

An "increase in supply" means the supply curve has shifted to the right while an "increase in quantity supplied" refers to a movement along a given supply curve in response to an increase in price

Table 4: Production Information Tacos Enchiladas Ben 12 4 Madysen 5 10 17 14 Figure 4: If Ben and Madysen considered specializing in one good and trading with the other, then they would be better off if Not enough information has been provided to answer the question. Madysen specialized in tacos and Ben specialized in enchiladas. Ben specialized in tacos and Madysen specialized in enchiladas. They rejected specialization since both producers should live within their means.

Ben specialized in tacos and Madysen specialized in enchiladas.

Serena Haley Bracelets 8 9 Necklaces 16 12 Table 2-6 shows the output per week of two jewelers, Serena and Haley. They can either devote their time to making bracelets or making necklaces. Haley has a comparative advantage in making both products. Haley has a comparative advantage in making necklaces and Serena in making bracelets. Haley has a comparative advantage in making bracelets and Serena in making necklaces. Serena has a comparative advantage in making both products.

Haley has a comparative advantage in making bracelets and Serena in making necklaces.

Table 2-6 Serena Haley Bracelets 8 9 Necklaces 16 12 Table 2-6 shows the output per week of two jewelers, Serena and Haley. They can either devote their time to making bracelets or making necklaces. Refer to Table 2-6. Which of the following statements is true? Haley has an absolute advantage in making bracelets and Serena in making necklaces. Serena has an absolute advantage in making both products. Haley has an absolute advantage in making both products. Haley has an absolute advantage in making necklaces and Serena in making bracelets.

Haley has an absolute advantage in making bracelets and Serena in making necklaces.

Which of the following statements is true? Selected Answer: Individuals who have never been the best at doing anything cannot have a comparative advantage in producing any product. Individuals who have never been the best at doing anything can still have a comparative advantage in producing some product. Individuals who have never been the best at doing anything perform all tasks at a higher opportunity cost than others. Individuals who have never been the best at doing anything must have an absolute advantage in at least ones task.

Individuals who have never been the best at doing anything can still have a comparative advantage in producing some product

Table 3: Production Information Shirts Pants Quinn 12 8 Knox 15 5 27 13 Figure 3: Using Table 3, what is the opportunity cost for Knox ot produce a pair of pants? One-third of a shirt. Two thirds of a shirt. 2 shirts. 1.5 shirts. None of the above

None of the above

Table 1: Production Information Tacos Enchiladas Paige 10 4 Gage 6 9 16 13 Figure 1: If Paige and Gage considered specializing, then both people would be better off if They rejected specialization since both producers should live within their means. Gage specialized in tacos and Paige specialized in enchiladas. Not enough information has been provided to answer the question. Paige specialized in tacos and Gage specialized in enchiladas.

Paige specialized in tacos and Gage specialized in enchiladas.

In October 2005, the U.S. Fish and Wildlife Service banned the importation of beluga caviar, the most prized of caviars, from the Caspian Sea. What happened in the market for caviar in the United States? The demand curve shifted to the right. The supply curve shifted to the left. The supply curve shifted to the right. The demand curve shifted to the left.

The supply curve shifted to the left

in February, market analysts predict that the price of titanium will rise in March. What happens in the titanium market in February, holding everything else constant? The demand curve shifts to the left. The supply curve shifts to the right. The quantity of titanium demanded and the quantity of titanium supplied both increase. The supply curve shifts to the left.

The supply curve shifts to the left.

In October, market analysts predict that the price of platinum will fall in November. What happens in the platinum market in October, holding everything else constant? The demand curve shifts to the right. The supply curve shifts to the left. The quantity of platinum demanded and the quantity of platinum supplied both increase. The supply curve shifts to the right.

The supply curve shifts to the right.

If the United States placed an embargo on Swedish products, what would happen in the U.S. market for Swedish furniture? The supply curve would shift to the left. The demand curve would shift to the left. The supply curve would shift to the right. The demand curve would shift to the right.

The supply curve would shift to the left

Product & Production per hour: Cooks Tacos Enchiladas Bree 12 6 Will 4 16 16 22 Will has a comparative advantage and an absolute advantage in making tacos. a comparative advantage but not an absolute advantage in making tacos. a comparative advantage and an absolute advantage in making enchiladas. a comparative advantage but not an abolute advantage in making enchiladas. none of these.

a comparative advantage and an absolute advantage in making enchiladas

Production per day (Bushels): Pickers Apples Cherries Taylor 8 2 Jeff 6 3 14 5 Jeff has a comparative advantage and an absolute advantage in picking cherries. a comparative advantage but not an absolute advantage in picking cherries. a comparative advantage and an absolute advantage in picking apples. a comparative advantage but not an abolute advantage in picking apples. none of these.

a comparative advantage and an absolute advantage in picking cherries

Product & Production per week: Producer Shirts Pants Dylan 12 9 Justin 4 8 16 17 Justin has a a comparative advantage and an absolute advantage in making shirts. a comparative advantage but not an absolute advantage in making shirts. a comparative advantage and an absolute advantage in making pants. a comparative advantage but not an abolute advantage in making pants. none of these.

a comparative advantage but not an abolute advantage in making pants.

Last year, the Pottery Palace supplied 8,000 ceramic pots at $40 each. This year, the company supplied the same quantity of ceramic pots at $55 each. Based on this evidence, The Pottery Palace has experienced a decrease in supply. a decrease in the quantity supplied. an increase in the quantity supplied. an increase in supply.

a decrease in supply.

Ranchers can raise either cattle or sheep on their land. Which of the following would cause the supply of sheep to increase? a decrease in the price of cattle an increase in the price of sheep an increase in the demand for cattle an increase in the price of sheep feed

a decrease in the price of cattle

An increase in the price of off-road vehicles will result in a smaller quantity of off-road vehicles supplied. a decrease in the supply of off-road vehicles. a larger quantity of off-road vehicles supplied. an increase in the demand for off-road vehicles.

a larger quantity of off-road vehicles supplied.

One would speak of a change in the quantity of a good supplied, rather than a change in supply, if prices of substitutes in production change. supplier expectations about future prices change. the cost of producing the good changes. the price of the good changes.

the price of the good changes.

Production per day (Bushels): Pickers Apples Cherries Taylor 8 2 Jeff 6 3 14 5 The producer with the least opportunity cost of picking cherries is....... the producer who gives up the fewest apples to pick a bushel of cherries. the producer who can pick the most apples per bushel of cherries given up. the producer who can pick the most cherries. the producer who can pick the fewest apples. the producer who can pick the most apples per bushel of cherries given up AND the producer who can pick the most cherries.

the producer who gives up the fewest apples to pick a bushel of cherries

Product & Production per hour: Cooks Tacos Enchiladas Bree 12 6 Will 4 16 16 22 The producer with the least opportunity cost of making a taco is the producer who gives up the fewest enchiladas to make a taco. the producer who can make the most enchiladas per taco given up. the producer who can make the most tacos. the producer who can make the fewest enchiladas. the producer who can make the most enchiladas per taco given up AND the producer who can make the most tacos.

the producer who gives up the fewest enchiladas to make a taco.

Product & Production per week: Producer Shirts Pants Dylan 12 9 Justin 4 8 16 17 The producer with the least opportunity cost of making a shirt is...... the producer who gives up the fewest pants to make a shirt. the producer who can make the most pants per shirt given up. the producer who can make the most shirts. the producer who can make the fewest pants. the producer who can make the most pants per shirt given up AND the producer who can make the most shirts.

the producer who gives up the fewest pants to make a shirt.

If, in the market for oranges, the supply has increased then the supply curve for oranges has shifted to the right. the supply curve for oranges has shifted to the left. there has been a movement downwards along the supply curve for oranges. there has been a movement upwards along the supply curve for oranges.

the supply curve for oranges has shifted to the right.

If in the market for peaches the supply curve has shifted to the left, the supply of peaches has decreased. the quantity of peaches supplied has decreased. the supply of peaches has increased. the quantity of peaches supplied has increased.

the supply of peaches has decreased.

Danielle Ocean pays for monthly pool maintenance for her home swimming pool. Last week the owner of the pool service informed Danielle that he will have to raise his monthly service fee because of increases in the price of pool chemicals. How is the market for pool maintenance services affected by this? There is a decrease in the quantity of pool maintenance services supplied. There is a decrease in the demand for pool maintenance services. There is a decrease in the supply of pool maintenance services. There is an increase in the supply of pool maintenance services.

there is a decrease in the supply of pool maintenance services.