economia
Change in which of the following factors do not shift the demand curve
the price of a substitute good
Obama drives up miles-per-gallon requirements Emissions from all new vehicles must be cut from 354 grams to 250 grams. To meet this new standard, the price of a new vehicle will rise by $1,300. What is the opportunity cost of reducing the emission level by 1 gram? The opportunity cost of reducing the emission level by 1 gram is
$12.50 of other goods and services
The factor of production that earns the highest percentage of total U.S. income is
. labor; wages
Suppose the price of a DVD rose from 15$ to 17$ and the quantity demanded decreased from 1000 per month to 900 per month. Using the mid point formula, the price elasticity of demand is
0.84
Which of the following statements is an example of price elasticity of supply?
A 10 percent fall in the price of turkey with no other change decreases quantity supplied by 12 percent.
shopping mall
An example of a capital good is
Choose the statement that is incorrect.
Labor is often referred to as infrastructure capital.
Huey and steve can grow potatoes or tomatoes. The table above shows the pounds of potatoes and tomatoes huey and steve can grow in a week. Based on the table, steve has a comparative advantage in Huey 12 potatoes, 8 tomatoes steve 6 potatoes, 2 tomatoes
Potatoes
In one hour, Sue can produce 40 caps or 4 jackets and Tessa can produce 80 caps or 4 jackets. Sue's opportunity cost of producing a cap is 0.1 jackets and Tessa's opportunity cost of producing a cap is 0.05 jackets.
Tessa; both Sue and Tessa gain
Which of the following does not influence the price elasticity of demand
The amount by which the demand curve shifts when the price of another good changes
If demand is price inelastic and the price is lowered, which of the following is correct?
The total revenue of the firms selling the product decreases
An example of a consumption good and service is
a chocolate chip cookie
Obama will drive up miles-per-gallon requirements Obama's revision of auto-emission and fuel-economy standards will require automakers to boost fuel economy to 35.5 miles per gallon by 2016, notching up 5% each year from 2012, to limit the amount of carbon dioxide cars can emit. The benefits from the new auto-emission standards include
a reduction in carbon emissions, which brings a decrease in the contribution of human activity to global warming, and cleaner air, which contributes to improved health
Capital goods
are goods that businesses and governments buy to increase productive resources to use during future periods to produce other goods and services
Consumption goods and services
are items that individuals and governments buy and use up in the current period
Items bought by businesses to help produce other goods and services are called
capital goods
To make a rational choice, a person
compares the extra benefits of one more unit to the extra costs of one more unit
the law of demand does not hold
decrease the quantity demanded of that good
When the price of a good increased by 5 percent, the quantity demanded of it decreased 10 percent. Demand for this good is ______.
elastic
In the circular flow figure of the global economy on the right, the flows of the components manufactured in other countries appear as _______, and the flows of Dreamliner sales to foreign airlines appear as _______.
expenditure on U.S. imports; expenditure on U.S. exports
The functional distribution of income shows the distribution of income among ______ and the personal distribution of income shows the distribution of income among ______.
factors of production; households
The scientific method uses models to ______.
focus on those features of reality assumed relevant for understanding a cause and effect relationship
Does the decision to make a blockbuster movie mean that some other more desirable activities get fewer resources than they deserve? If you respond that ______, then your response is a ______ statement.
giving an activity fewer resources than it deserves cannot be measured; normative
Scarcity exist because
human wants exceed the resources available to satisfy them
One winter recently, the price of home heating oil increased by 20 percent and the quantity demanded decreased by 2 percent. Use the total revenue test to determine whether the demand for home heating oil is elastic or inelastic. Total revenue ______ because the percentage increase in the price is ______ than the percentage decrease in the quantity demanded. Because total revenue and the price change in _________, the demand for home heating oil is ______.
increases; greater the same direction; inelastic
which of the following increases the supply of a product
lower prices for the resources used to produce the product
A rational choice is ______.
made by comparing marginal benefit and marginal cost
Compared to the developing economies, the advanced economies have _______ human capital and _______ physical capital.
more; more
The value of the best thing that a person must give up when making a decision is known as the __________________ cost
opportunity
What is the formula for the cross elasticity of demand? The percentage change in the
quantity demanded divided by the percentage change in the price of substitute or complement
In Canine Ville, the price elasticity of demand for dry dog food is 0.8, the income elasticity of demand for dry dog food is 0.2, and the cross elasticity of demand for dry dog food with respect to canned dog food is 0.6. Dry dog food and canned dog food are
substitutes
For a product with a rapidly increasing opportunity cost of producing additional units,
supply is price inelastic
Which of the following statements is correct?
the income elasticity of demands for normal goods is positive
We can be confident that the market for college education is competitive and that an increase in demand rather than the greed of college administrators is the reason for the ongoing rise in tuition for all of the following reasons except
the law of demand does not hold
Which of the following statements best describes the study of economics? Economics studies how
we make choices in the face of scarcity
The cross elasticity of demand for good A with respect to good B is 0.2. A 10 percent change in the price of good B will lead to a ______ percent change in the quantity of good A demanded. Goods A and B are ______.
2; substitutes
