ECO 101 - Quiz 1

d. D2 to D1

Refer to Figure 3-1. A decrease in the price of a substitute good would be represented by a movement from a. A to B. b. B to A. c. D1 to D2. d. D2 to D1.

b. Increase the demand for the Gear S2.

If the Apple Watch and the Samsung Gear S2 are considered substitutes, then, other things equal, an increase in the price of the Apple Watch will a. Decrease the demand for the Apple Watch. b. Increase the demand for the Gear S2. c. Increase the quantity demanded for the Gear S2. d. Increase the quantity demanded for the Apple Watch.

a. The supply curve shifted to the left.

In October 2005, the U.S. Fish and Wildlife Service banned the importation of beluga caviar, the most prized of caviars, from the Caspian Sea. What happened in the market for caviar in the United States? a. The supply curve shifted to the left. b. The supply curve shifted to the right. c. The demand curve shifted to the right. d. The demand curve shifted to the left.

a. Human capital.

In economics, the accumulated skills and training that workers have is known as a. Human capital. b. Entrepreneurship. c. Physical capital. d. Innovation.

d. The demand curve for traditional camera film shifts to the left.

How does the increasing use of digital cameras affect the market for traditional camera film? a. The demand curve for traditional camera film shifts to the right. b. The quantity of traditional camera film demanded decreases. c. The quantity of traditional camera film demanded increases. d. The demand curve for traditional camera film shifts to the left.

c. The highest valued alternative that must be given up to engage in an activity.

Opportunity cost is defined as a. The benefit of an activity. b. The monetary expense associated with an activity. c. The highest valued alternative that must be given up to engage in an activity. d. The total value of all alternatives that must be given up to engage in an activity.

c. D1 to D2.

Refer to Figure 3-1. An increase in population would be represented by a movement from a. A to B. b. B to A. c. D1 to D2. d. D2 to D1

b. B to A.

Refer to Figure 3-1. An increase in the price of the product would be represented by a movement from a. A to B. b. B to A. c. D1 to D2. d. D2 to D1.

d. D2 to D1.

Refer to Figure 3-1. If the product represented is an inferior good, an increase in income would be represented by a movement from a. A to B. b. B to A. c. D1 to D2. d. D2 to D1.

d. S2 to S1.

Refer to Figure 3-2. An increase in price of inputs would be represented by a movement from a. A to B. b. B to A. c. S1 to S2. d. S2 to S1.

c. S1 to S2.

Refer to Figure 3-2. An increase in the number of firms in the market would be represented by a movement from a. A to B. b. B to A. c. S1 to S2. d. S2 to S1.

a. A to B.

Refer to Figure 3-2. An increase in the price of the product would be represented by a movement from a. A to B. b. B to A. c. S1 to S2. d. S2 to S1.

b. 63 lbs.

Refer to Table 3-1. The table above shows the demand schedules for loose-leaf tea of two individuals (Sunil and Mia) and the rest of the market. At a price of $5, the quantity demanded in the market would be... a. 51 lbs. b. 63 lbs. c. 76 lbs d. 146 lbs.

a. Unlimited wants exceed limited resources.

Scarcity refers to the situation in which a. Unlimited wants exceed limited resources. b. Unlimited resources exceed limited wants. c. A country's population is larger than its resource base. d. A nation's poverty level increases faster than its population.

d. All of the above

Unemployment causes harm: a. To the unemployed person and his/her family. b. To the economy as a whole c. In terms of the production possibilities curve d. All of the above

a. A smaller quantity of GPS systems supplied.

A decrease in the price of GPS systems will result in a. A smaller quantity of GPS systems supplied. b. A larger quantity of GPS systems supplied. c. A decrease in the demand for GPS systems. d. An increase in the supply of GPS systems.

a. Is a table that shows the relationship between the price of a product and the quantity of the product supplied.

A supply schedule a. Is a table that shows the relationship between the price of a product and the quantity of the product supplied. b. Is a curve that shows the relationship between the price of a product and the quantity of the product supplied. c. Is the relationship between the supply of a product and the cost of producing the product. d. Is a table that shows the relationship between the price of a product and the quantity of the product that producers and consumers are willing to exchange.

a. The quantity of bagels demanded will decrease.

The law of demand implies, holding everything else constant, that as the price of bagels increases... a. The quantity of bagels demanded will decrease. b. The demand for bagels will decrease. c. The quantity of bagels demanded will increase. d. The demand for bagels will increase.

b. Physical capital.

The machines workers have to work with are considered a. Human capital. b. Physical capital. c. Entrepreneurship. d. Financial capital.

d. Shows the relationship between the price of watches and the quantity of watches supplied.

The supply curve for watches a. Shows the supply of watches consumers are willing and able to buy at any given price. b. Is downward sloping. c. Shows the relationship between the quantity of watches firms are willing and able to supply and the quantity of watches consumers are willing and able to purchase. d. Shows the relationship between the price of watches and the quantity of watches supplied.

b. An "increase in demand" is represented by a rightward shift of the demand curve while an "increase in quantity demanded" is represented by a movement along a given demand curve.

What is the difference between an "increase in demand" and an "increase in quantity demanded"? a. There is no difference between the two terms; they both refer to a shift of the demand curve. b. An "increase in demand" is represented by a rightward shift of the demand curve while an "increase in quantity demanded" is represented by a movement along a given demand curve. c. There is no difference between the two terms; they both refer to a movement downward along a given demand curve. d. An "increase in demand" is represented by a movement along a given demand curve, while an "increase in quantity demanded" is represented by a rightward shift of the demand curve.

d. An "increase in supply" means the supply curve has shifted to the right while an "increase in quantity supplied" refers to a movement along a given supply curve in response to an increase in price.

What is the difference between an "increase in supply" and an "increase in quantity supplied"? a. There is no difference between the two terms; they both refer to a shift of the supply curve. b. There is no difference between the two terms; they both refer to a movement along a given supply curve. c. An "increase in supply" means the supply curve has shifted to the right while an "increase in quantity supplied" means at any given price supply has increased. d. An "increase in supply" means the supply curve has shifted to the right while an "increase in quantity supplied" refers to a movement along a given supply curve in response to an increase in price.

c. An automobile

Which of the following is not considered a service? a. Health care b. Education c. An automobile d. City mass transit

b. An increase in the price of the good

Which of the following will not shift the demand curve for a good? a. An increase in population b. An increase in the price of the good c. A decrease in the price of a substitute good d. An increase in consumer incomes

a. An increase in the price of an input used to produce MP3 players

Which of the following would shift the supply curve for MP3 players to the left? a. An increase in the price of an input used to produce MP3 players b. A decrease in consumer tastes for MP3 players c. An increase in the number of firms that produce MP3 players d. An increase in the productivity of the workers who produce MP3 players