Unit 1 Quiz

Assume that oil is a resource to make gasoline. Today, the price of oil per barrel is $68. 3 months ago, it was $72. Which is true of today? A)The Quantity Supply of oil will decrease. The Supply of gasoline will increase. B)The Quantity Supply of oil will decrease and the Supply of gasoline will decrease. C)The Quantity Supply of oil will increase and the Supply of gasoline will decrease. D)Both the Quantity Supply of gasoline and Quantity Supply of oil will remain unchanged. E)The Quantity Supply of oil will increase and the Supply of gasoline will increase.

A

Staples Paper Clips Country A 12 4 Country B 18 9 What is Country B's opportunity cost of producing 1 paper clip? A)2 B)3 C).5 D)5

A

Unemployment was reduced in a nation. What is the result on the Production Possibilities Curve? A)There would be a movement from inside the curve to on the curve because now a nation's labor force is more efficient B)The curve would shift in (to the left) since the overall the number of resources a nation has to use has increased. C)There would a movement from inside to on the curve because now each worker is more efficient D)There would be a movement from being on the curve to being outside the curve since more products can now be produced E)There would be a shift to inside the curve since each worker would most likely produce less now that human resources take up much of the capital resources capacity to produce

A

Which does not cause the Demand for juice to increase? A)The price of juice decreased B)Juice companies advertised heavily. C)Peoples' tastes have changed and many more are enjoying juice. D)The price of Pepsi increased. E)The price of crackers decreased.

A

Staples Paper Clips Country A 12 4 Country B 18 9 What is Country A's opportunity cost of producing 1 staple? A).3 B)3 C).5 D)2

A)

Pizza and Coke Zero are complements. The price of Coke Zero decreases. Which is correct? A)There will be movement on the Demand Curve for Coke Zero and an decrease in Demand for Coke Zero. B)The Quantity Demand will decrease for Coke Zero. The Demand for Pizza will increase. C)The Quantity Demand for Coke Zero increases and the Demand for Pizza also increases. D)The Demand for pizza will increase while the Demand for Coke Zero will increase. E)There is a movement downward on the Demand Curve for pizza. The Coke Zero will have an increase in Demand.

B

Which is correct regarding Graph A? A)The Quantity Supply remains unchanged. The Demand has increased. B)The Quantity Supply has increased. The Quantity Demand has not changed. C)The Supply has decreased. The Quantity Demand has increased. D)The Quantity Supply has decreased. The Demand has increased. E)The Supply has decreased. The Quantity Demand has decreased.

B

Staples Paper Clips Country A 12 4 Country B 18 9 What is Country A's opportunity cost of producing 1 paper clip? A).3 B)2 C)3 D)12

C

Staples Paper Clips Country A 12 4 Country B 18 9 What is Country B's opportunity cost of producing 1 staple? A)2 B)9 C).5 D)3

C

Staples Paper Clips Country A 12 4 Country B 18 9 From the above table, which is true? A)Country A has an Absolute Advantage in paper clips and a Comparative Advantage in making staples. B)Country B has an Absolute Advantage in both products and a Comparative Advantage in staples. C)Country A has both a Comparative Advantage and Absolute Advantage in staples. D)Country B has an Absolute Advantage in making staples and a Comparative Advantage in making paper clips E)Country B has both a Comparative and Absolute Advantage in staples.

D