Q3 econ test 1

Which of the following IS NOT a reason the division of labor increases production?

When workers specialize, they frequently change jobs so that the work does not become boring to them

An example of opportunity cost would be if you missed four years of salary because you decided to go to four years of college instead

true

In the Circular Flow Matrix, products and resources flow between households and businesses.

true

All of the following shift the demand curve for cars to the right except:

A brand new car dealership opens in town

Who began the formal study of economics with his book "The Wealth of Nations"?

Adam Smith

Part of the reason Tom Brady makes over $20 million each year while Mr. Whicker earns $74,000 is because

All the other answers

On the Production Possibilities Frontier example above, which dot represents an inefficient use of resources?

C

On the Production Possibilities Frontier example above, which dot represents a number of goods that is impossible to produce?

D

On the graph, what does the line labeled B represent

Demand curve

If a product's price changes 25% and it quantity 40%, demand for that product is

Elastic

The Law of Demand holds that other things being equal, as the price of a good or service rises, its quantity demand also rises

False

Microeconomics

Focuses on the actions of individual agents within the economy, such as workers, households, and businesses

Macroeconomics

Focuses on the economy as a whole through the study of broad issues such as the growth of production, unemployment levels, inflation, and deficits

Who used the division of labor and assembly line production to produce automobiles that were for the first time affordable to the average American family?

Henry Ford

If Colton's income rises, what happens to his demand for airplane trips? If the income of most consumers of air travel rises (and air travel is a normal good), what will happen to the market equilibrium price P and quantity Q of this good?

Price and Quantity both rise

If the technology for making iPhones improves tremendously, what is likely to happen to the price and quantity sold?

Price falls, Quantity sold rises

If the price of materials used to make headphones rises sharply, what happens to the price and quantity sold of headphones?

Price rises, Quantity sold falls

On the graph, what does the line labeled A represent

Supply curve

The Law of Supply holds that other things being equal, as the price of a good rises, its quantity supplied will rise.

True

On the graph, what does the dot represent

equilibrium

In the Circular Flow Matrix, there are two markets: The resource market and the supermarket

false

Inelastic

insensitive to changes in price or income

Which of the curves in the photo below represents demand that is more inelastic

orange

The red dotted line represents

the price ceiling

The green dotted line represents

the price floor

If the cost of video game components falls, then

the supply curve for computers shifts to the right