micro test 1

Refer to Table 3-12. Which of the following points would not be on Jim's production possibilities frontier, based on a 40-hour week?

(60 computers set up, 12 computers tested)

Refer to Table 3-33 Chris and Tony both produce tomatoes and pasta sauce. The table shows their possible production per month if both work the same number of 8 hour days. Which of the following prices would result in a mutually advantageous trade between Chris and Tony?

1 lb. of tomatoes for 23 jars of sauce 1 lb. of tomatoes for 27 jars of sauce

Refer to Table 3-20. What is Theresa's opportunity cost of producing one bushel of wheat?

3/5 pound of beef

Production Possibilities for Footville Shoes 800 600 400 200 0 socks 0 400 700 900 1000 Refer to Table 2-3. What is the opportunity cost to Footville of increasing the production of shoes from 400 to 600?

300 socks

Assume that Brad and Theresa can switch between producing wheat and producing beef at a constant rate. Minutes Needed to Make 1 Bushel of Wheat Pound of Beef Brad 10 12 Theresa 6 10 Refer to Table 3-20. What is Brad's opportunity cost of producing one bushel of wheat?

5/6 pound of beef

Barb and Jim run a business that sets up and tests computers. Assume that Barb and Jim can switch between setting up and testing computers at a constant rate. The following table applies. ​ ​ Minutes Needed to Number of Computers Set Up or Tested in a 40-Hour Week Set Up 1 Computer Test 1 Computer Computers Set Up Computers Tested Barb 48 ? 50 40 Jim 30 40 80 60 ​ Refer to Table 3-12. The number of minutes needed by Barb to test a computer is

60.

A rationale for government involvement in a market economy is

All of the above are correct.

The principle that "trade can make everyone better off" applies to interactions and trade between

All of the above are correct.

Which of these statements about economic models is correct?

For economists, economic models provide insights about the world, Economic models are built with assumptions, Economic models are often composed of equations and diagrams, All of the above are correct.

In a certain economy, jam and bread are produced, and the economy currently operates on its production possibilities frontier. Which of the following events would allow the economy to produce more jam and more bread, relative to the quantities of those goods that are being produced now?

The economy experiences economic growth.

Which of the following events would cause a movement upward and to the right along the supply curve for mangos?

The price of mangos rises.

Which of the following is not an assumption of the productions possibilities frontier?

There is a fixed quantity of money.

Chris and Tony's Production Opportunities Tomatoes Pasta Sauce Chris 10 lbs 300 jars Tony 14 lbs 280 jars Refer to Table 3-33 Chris and Tony both produce tomatoes and pasta sauce. The table shows their possible production per month if both work the same number of 8 hour days. Which of the following statements is correct?

Tony has an absolute advantage in the production of tomatoes.

When can two countries gain from trading two goods?

Two countries could gain from trading two goods under all of the above conditions.

Which of the following changes would not shift the demand curve for a good or service?

a change in the price of the good or service

Which of the following is not correct?

a) Trade allows for specialization. b) Trade has the potential to benefit all nations. c) Trade allows nations to consume outside of their production possibilities curves. d) Absolute advantage is the driving force of specialization.

When we move along a given demand curve,

all nonprice determinants of demand are held constant.

The opportunity cost of obtaining more of one good is shown on the production possibilities frontier as the

amount of the other good that must be given up.

The circular-flow diagram is an example of

an economic model.

One advantage market economies have over centrally-planned economies is that market economies

are more efficient.

In a market economy, supply and demand determine

both the quantity of each good produced and the price at which it is sold.

A friend of yours asks you why market prices are better than government-determined prices. Because you understand economic principles, you say that market-determined prices are better because they generally reflect

both the value of a good to society and the cost of making it.

Corn (in bushels) 2000 1600 1200 800 400 0 Wheat (in bushels) 0 700 1300 1800 2200 2500 Refer to Table 2-5. Table 2-5 shows one set of production possibilities. Based on the values in the table, the production possibilities frontier is

bowed outward indicating increasing opportunity costs.

In economics, capital refers to

buildings and machines used in the production process.

Any point on a country's production possibilities frontier represents a combination of two goods that an economy

can produce using all available resources and technology.

Rational people make decisions at the margin by

comparing marginal costs and marginal benefits.

Refer to Figure 3-10. Both Alice and Betty (quiz 3)

face a constant trade-off between producing pitchers of lemonade and pizzas.

Pizza is a normal good if the demand

for pizza rises when income rises.

For a market for a good or service to exist, there must be a

group of buyers and sellers.

In the simple circular-flow diagram, the participants in the economy are

households and firms.

Microeconomics is the study of

how individual households and firms make decisions.

In the broadest sense, economics is the study of

how society manages its scarce resources.

People are likely to respond to a policy change

if the policy changes either the costs or benefits of their behavior.

A company that formerly produced music CDs went out of business because too many potential customers bought illegally-produced copies of the CDs instead of buying the product directly from the company. This instance serves as an example of

inadequate enforcement of property rights.

A rightward shift of a demand curve is called a(n)

increase in demand.

If Kindle e-readers and Nook e-readers are substitutes, a higher price for Nooks would result in a(n)

increase in the demand for Kindles.

Benefits from trade would not include

less competition.

One thing economists do to help them understand how the real world works is

make assumptions.

On a bowed production possibilities frontier, as you move down along the curve

more of one good must be given up to receive one unit of the other good., the available production technology does not change., the opportunity cost increases., All of the above are correct.

A competitive market is a market in which

no individual buyer or seller has any significant impact on the market price.

John is an athlete. He has $120 to spend and wants to buy either a heart rate monitor or new running shoes. Both the heart rate monitor and running shoes cost $120, so he can only buy one. This illustrates the principle that

people face trade-offs.

The adage, "There is no such thing as a free lunch," means

people face tradeoffs.

At the equilibrium price, the quantity of the good that buyers are willing and able to buy

price may increase, decrease, or remain unchanged.

Each of the following is a determinant of demand except

production technology.

In the circular-flow diagram, which of the following items does not flow from households to firms?

profit

Suppose the American Medical Association announces that men who shave their heads are less likely to die of heart failure. We could expect the current demand for

razors to increase.

Resources are

scarce for households and scarce for economies.

In a market economy, economic activity is guided by

self-interest and prices.

Wheat is the main input in the production of flour. If the price of wheat decreases, then we would expect the

supply of flour to increase.

A CPA recently has come to expect higher prices for expert tax advice in the near future. We would expect

the CPA to supply less expert tax advice now than she was supplying previously.

You go to the movieplex where movies ordinarily cost $9. You are intending to see a movie for which you have a $3 off coupon good for only that movie at that time. However, when you get there you see a friend who asks if you would rather see a new release. Both movies start and end at the same time. If you decide to see the new release with your friend, what is your opportunity cost?

the amount you value the first movie + $3

The production possibilities frontier is a graph that shows the various combinations of output that an economy can possibly produce given the available factors of production and

the available production technology.

Efficiency is illustrated by

the production possibilities frontier only.

A production possibilities frontier is a straight line when

the rate of tradeoff between the two goods being produced is constant.

A university's football stadium is never more than half-full during football games. This indicates

the ticket price is above the equilibrium price.

The production possibilities frontier illustrates

the trade-off between efficiency and equality, the combination of output that an economy should produce, the combination of output that each member of society should consume, None of the above is correct.

The opportunity cost of an item is

what you give up to get that item.

Studying which of the following is helpful in learning to think like an economist​?

​theory, ​case studies, examples of economics in the news, ​all of the above.