midterm 1

When China builds a dam using few machines and a great deal of​ labor, it is answering the​ ________ question.

"how"

In one​ hour, Sue can produce 70 caps or 21 jackets and Tessa can produce 50 caps or 25 jackets. ​Sue's opportunity cost of producing a cap is​ ______ jackets and​ Tessa's opportunity cost of producing a cap is​ ______ jackets.

-0.3; 0.5 -Sue​; both Sue and Tessa gain

If Utopia produces 23 ball games​, the marginal benefit from ball games ​______ the marginal cost of ball games. To achieve allocative​ efficiency, Utopia must​ ______ the quantity of ball games produced. https://imgur.com/VlIsK7m

. exceeds​; increase

Think about the demand for three game​ consoles: XBox​ One, PlayStation​ 4, and Wii U. What is the effect of the following events on the demand for Xbox One games and the quantity of Xbox One games​ demanded, other things remaining the​ same? The events are A.The prices of a PS 4 and a Wii Upper U fall. B. Upper A new game console comes onto the market comma which is a close substitute for XBox One. C. Consumers' incomes increase. D. Programmers who write code for XBox One games become more costly to hire. 1) Event A ​ ______ the​ ______ XBox One games. 2)Event B​ ______ the​ ______ XBox One games. 3)Event C​ ______ the​ ______ XBox One games. 4)Event D​ ______ the​ ______ XBox One games.

1) decreases​; demand for 2) decreases​; demand for 3) increases​; demand for 4) decreases​; quantity demanded of

https://imgur.com/bqoQE5i Leisure Land produces only sun screen and camel rides. The table shows the marginal benefit and marginal cost schedules for sun screen and camel rides. The allocatively efficient number of camel rides is​ ________.

4 rides per day

Which of the following is a positive​ statement?

A 5 percent increase in income leads to a 3 percent increase in the consumption of orange juice.

What is the equilibrium price of a milkshake and the equilibrium quantity of milkshakes per​ day? https://imgur.com/F8BobyE

The equilibrium quantity of milkshakes is 25 a day. The equilibrium price is ​$4 a milkshake.

The table gives the demand and supply schedules for batteries. https://imgur.com/jnwEu8P Suppose that demand increases by 100 batteries a day and supply decreases by 50 batteries a day. -What is the new equilibrium price of a battery and what is the new equilibrium quantity of​ batteries?

The new equilibrium price is ​$4 per battery. The new equilibrium quantity is 700 batteries per day.

It is expected that the price of a bushel of wheat will increase in one month. This belief will result in

a decrease in current supply of wheat.

Which of the following shifts the supply curve for gasoline​ rightward?

a decrease in the price of a resource used to produce​ gasoline, such as crude oil

Which of the following is NOT an investment in human​ capital?

a student purchases a laptop computer

A market is​ ______.

any arrangement that enables buyers and sellers to get information and to do business with each other

As the market moves toward the equilibrium​ price, the quantity demanded​ _______ and the quantity supplied​ _______.

decreases​; increases

You predict that the price of an electric guitar will​ ______ and the quantity of electric guitars bought will​ ______.

either rise comma fall comma or remain the same​; increase

The income earned by the people who sell the services of the factor of production​ _______ is called​ _______.

entrepreneurship​; profit

A decrease in the demand for donuts brings a​ ______ in the price of a donut and​ ______ in the quantity of donuts supplied.

fall; a decrease

In goods markets​ ________ and in factor markets​ ________.

firms sell to​ households; households sell to firms

The graph shows the demand curve for bottled water and the supply curve of bottled water. -Draw a point at the equilibrium price and quantity of water. Label it 1. -Draw a second supply curve that shows what happens in the market for bottled water if the wage rates of workers who produce water fall but all other influences on selling plans remain the same. Label the curve S1. -Draw a point at the new equilibrium price and quantity. Label it 2.

https://imgur.com/w8bW9ck

A supply curve that illustrates the law of supply​ _______.

is upward sloping

Economic growth can be pictured in a production possibilities frontier diagram by

shifting the production possibilities frontier outward.

If the price is $ 6 a milkshake​, there is a​ ______ of milkshakes​, so the price of a milkshake ​______.

shortage​; rises

A demand curve that illustrates the law of demand​ ______.

shows that the quantity demanded increases as the price falls

The virus decreases the​ _______.

supply of potato chips and decreases the quantity of potato chips demanded

If the price is above the equilibrium​ price, then there is a

surplus, and market forces will operate to lower price.

When an event occurs that changes the demand for coffee makers​, ​_______ if demand increases and​ ______ if demand decreases.

the demand curve shifts​ rightward; the demand curve shifts leftward

Which of the following is a macroeconomic decision or​ concept?

the unemployment rate for the entire economy

In the​ figure, point A is undesirable because https://imgur.com/yVfK2Ed

there is an inefficient use of resources.

When an economy produces more houses and fewer​ typewriters, it is answering the​ ________ question.

​"what"

If the price of a hot dog decreases​, the demand for burgers will​ _______.

​decrease, and the demand curve for burgers will shift leftward

The law of demand states that other things remaining the​ same, the​ _______ the price of a​ good, the​ _______.

​higher; smaller is the quantity demanded

The resources that are used to produce goods and services​ - _____ are factors of production.

​land, labor,​ capital, and entrepreneurship

The study of the choices made by individuals is part of the definition of

microeconomics.

If the price of a milkshake rises​, a​ ______ the demand curve occurs. If any factor that influences buying plans other than the price​ changes, then a​ ______ the demand curve occurs.

movement up ​along; shift of

The table shows the demand and supply schedules for milk. Now two changes occur in the market for milk. Excellent weather increases the quantity supplied by 75 cartons a day at each price. And a news story on CNN that says ​"Milk causes obesity when consumed in excess​" decreases the quantity demanded by 60 cartons a day at each price. What is the new equilibrium in the market for milk​? https://imgur.com/dUVrumb

At the current price a surplus emerges. The new equilibrium price is ​$1.75 a carton and the new equilibrium quantity is 465 cartons a day.

​"As more people buy bicycles​, the demand for bicycle helmets will increase and the price of a helmet will decrease. The fall in the price of a bicycle helmet will decrease the supply of bicycle helmets​." This statement is​ ______ because​ ______.

false; an increase in demand for bicycle helmets does not decrease the price of a bicycle helmet and a decrease in the price of a bicycle helmet does not decrease the supply of bicycle helmets

The law of supply states that other things remaining the​ same, the​ _______ the price of a​ good, the​ _______.

higher; greater is the quantity supplied

Opportunity cost means the

highest-valued alternative forgone.

The table shows the demand and supply schedules for milkshakes. https://imgur.com/ZCjcTa8 Draw a demand curve and a supply curve using the numbers in the table. Label the curves. Draw a point to show the equilibrium price and equilibrium quantity.

https://imgur.com/3iaDvGI

The figure shows the demand curve for milkshakes. Suppose that the price of a milkshake rises but all other influences on buyers' plans remain the same. Show the effect in the graph. Draw either an arrow on the demand curve showing the direction of change or a new demand curve.

https://imgur.com/BOtPBTY

The graph shows a demand curve for coffee makers. Draw a demand curve that shows what happens in the market for coffee makers if the price of a coffee maker is expected to fall in the future comma but all other influences on buying plans remain the same. Label the curve D1.

https://imgur.com/FBikyUy

Dairies make​ low-fat milk from​ full-cream milk. In the process of making​ low-fat milk, the dairies produce​ cream, which is made into ice cream. The graph shows the supply curve of​ low-fat milk. Suppose the price of cream rises. -Draw a new supply curve that shows the effect of this event. Label the curve.

https://imgur.com/MuWTdKA

The graph shows the demand for and supply of potato chips. -Draw a curve that shows the effect of a virus that destroys potato crops and decreases the quantity of potato chips produced by 20 million bags a week at each price. Label the curve. -Draw a point at the new equilibrium price and quantity.

https://imgur.com/bpTf6Ce

If both the demand and supply​ increase, the equilibrium quantity

increases and the effect on the equilibrium price is indeterminate.

The PPF bows outward because as we move from point A to point B to point C​, the opportunity cost of producing a blanket ​______. https://imgur.com/f8tK93q

increases. Resources are not equally productive in all activities

Leather belts and leather shoes are substitutes in production. If style changes increase the demand for leather​ belts, the supply curve of leather shoes will shift

leftward and the equilibrium price of leather shoes will rise.