Econ 102

Savion is restoring a car and had already spent $4000 on the restoration. He expects to be able to sell the car for $5800. Savion discovers that he needs to do an additional $2400 of work to make the car worth $5800 to potential buyers. He could also sell the car now, without completing the additional work, for $3800. What should he do?

Don't matter

Which of the following is the most correct statement about the relationship between inflation and unemployment

In the short run, falling inflation is associated with rising unemployment

Suppose Jim and Tom can both produce two goods: baseball bats and hockey sticks. Which of the following is not possible

Jim has a comparative advantage in the production of baseball bats and in the production of hockey sticks.

Suppose the state of Wyoming passes a law that increases the tax on cigarettes. As a result, smokers who live in Wyoming start purchasing their cigarettes in surrounding states. Which of the following principles does this best illustrate?

People respond to incentives

Acme Home Builders, Inc., has built 24 houses so far this year at a total cost to the company of $4.80 million. If the company builds a 25th house, its total cost will increase to $5.05 million. Which of the following statements is correct?

The marginal cost of the 25th house, if it is built, will equal $250,000.

Candace is planning her activities for a hot summer day. she would like to go to the local swimming pool and see the latest blockbuster movie, but because she can only get tickets to the movie for the same time that the pool is open she can only choose one activity. this illustrates the basic principle that

Trade off

If the United States decides to trade with Yemen, we know that

Yemen and the United States can both benefit.

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

a change in the price of the good or service

The gains from trade are

a result of more efficient resource allocation than would be observed in the absence of trade

The most obvious benefit of specialization and trade is that they allow us to

consume more goods than we otherwise would be able to consume.

An increase in the price of a good will

decrease in quantity demanded

Central planning refers to

government guiding economic activity. Today many countries that had this system have abandoned it.

The producer that requires a smaller quantity of inputs to produce a certain amount of a good, relative to the quantities of inputs required by other producers to produce the same amount of that good,

has an absolute advantage in the production of that good

Trade between countries tends to

increase both competition and specialization.

The supply of a good will be more elastic, the

longer the time period being considered

Market power refers to the

power of a single person or small group to influence market prices

demand schedule is a table that shows the relationship between

price and quantity demanded

The quantity supplied of a good is the amount that

sellers are willing and able to sell

For a good that is a luxury, demand

tends to be elastic

Suppose the United States has a comparative advantage over Mexico in producing pork. The principle of comparative advantage asserts that

the United States should produce more pork than what it requires and export some of it to Mexico.

In most societies, resources are allocated by

the combined actions of millions of households and firms

When the quantity demanded has increased at every price, it might be because

the price of a complementary good has decreased

equilibrium price

the price that balances quantity supplied and quantity demanded

cross-price elasticity of demand measures how

the quantity demanded of one good changes in response to a change in the price of another good.

The price elasticity of supply measures how much

the quantity supplied responds to changes in the price of the good

Which of the following is not a determinant of the price elasticity of demand for a good

the steepness or flatness of the supply curve for the good

If the supply of a product increases, then we would expect equilibrium price

to decrease and equilibrium quantity to increase

Which of the following is not a characteristic of a perfectly competitive market?

‍♀️

market supply curve

‍♀️

If Dina must work 0.25 hour to produce each taco, then her production possibilities frontier is based on how many hours of work?

‍♀️ 100 hours

If the production possibilities frontier shown for Arturo is for 100 hours of production, then how long does it take Arturo to make one burrito?

‍♀️ 300/100

Which of the following toothpastes is likely to have the most price inelastic demand

‍♀️ a generic Ming flavored toothpaste