Macro - 2.4.4

Chris is spending the summer volunteering as a lifeguard. the other job he could have had was to paint houses for $440/week. his opportunity cost of life guarding this summer is:

$440/week

productive efficiency means:

both an increase in the production of one good cannot occur without a decrease in the production of another good, and the economy is producing on its PPF

a nation's PPF will shift out by the largest amount if

both most of the resources in the nation are used to produce capital goods, and technology advances

money acts as a rationing device for goods and services in a market economy. this means:

consumers who are willing and able to pay for a good are usually able to get the good

when trade barriers between two nations, such as quotas and tariffs, are removed:

economic wealth will increase for both nations ??

if you were a government official who wanted to raise the equilibrium price of milk, which of the following actions could you take and expect to achieve your goal?

encourage farmers to produce less milk

ceteris paribus is a key phrase in economics. it means:

hold all variables constant

a technological breakthrough lowers the cost of manufacturing VCRs. as a result, the market changes to a new equilibrium because of a (an):

rightward shift in the supply curve for VCRs

which of the following would a government operating in a laissez-faire economy not do?

set prices

assuming compact discs and cassettes are substitute goods, a decrease in the price of cassettes will cause the demand curve for compact discs to:

shift to the left as consumers switch from buying discs to cassettes

Jan can either pick 10 bushels of apples or press 20 gallons of cider in one day. Kim can either pick 15 bushels or press 15 gallons in a day. which of the following statements is true?

Jan has absolute and comparative advantages in pressing cider

an economic system characterized by choices based on the decisions of central planners is:

a command economy

all other things being equal, the effect of a decrease in the price of soda pop would cause which of the following?

a downward movement along the demand curve for soda pop

the scientific method:

all of these. the four-step process; it requires certain assumptions and simplifications; and it's used in economics

in the market for credit, the interest rate is the price people pay to borrow money for a given time. the only thing that wouldn't increase interest rates in the market for credit it:

allowing foreign banks to compete in the domestic credit market

which of the following statements is correct?

if you see a nation producing at a point on its PPF, its economy is using its resources efficiently

one of the reasons Chris chose life guarding is that he had already completed the certification course necessary for the job. "Since I have the training," he said, "I really should use it." This reasoning is:

incorrect because the cost of taking the course is a sunk cost

ceteris paribus, which of the following would cause a decrease in the demand for film

increase in the price of cameras

the negative slope of the demand curve reflects the:

inverse relationship between price and quantity

the government of Labouria is considering increasing the tax on cheese from $3/pound to $4/pound. what will this do to the revenues from this tax?

it will definitely decrease tax revenue if demand for cheese is elastic

Restricting imports on foreign oil will lead to everything except:

more purchases of oil by domestic consumers ??

if the equilibrium wage in the labor market is $8, but the government imposes a minimum wage of $10, there will be:

more unemployment because employers will want to hire fewer people

society's production possibilities curve bows out because:

of increasing opportunity costs

people trade because:

people expect to be better off by the trading

people pursuing their own self-interest are:

perhaps selfish, but perhaps not, depending on their values and point of view

if demand and supply both increase

price may either rise or fall, depending on which shift is larger

suppose prices for new homes have risen, and sales of new homes have also risen. we can conclude that:

the demand for new homes has risen

suppose a price ceiling is set by the government in a market. which of the following will result?

the quantity demanded will exceed the quantity supplied

one of the assumptions underlying the production possibilities curve (or PPF) for any given economy is that:

there is full employment of resources when the economy is on the curve

a decrease in quantity demanded is given by a

upward movement to the left along the demand curve