Econ 202 4.1-4.11 Study Set

Product & Production per hour: The opportunity cost for Will to make an enchilada 4 2 0.5 0.25 16

0.25

Product & Production per hour: The opportunity cost for Bree to make a taco is 6 12 0.5 4 0.25

0.5

Product & Production per week: The opportunity cost for Justin to make a pair of pants is 0.5 4 2 1.5 8

0.5

Product & Production per week: The opportunity cost for Dylan to make a shirt is 12 0.75 0.5 1.33 9

0.75

Table 2-6 shows the output per week of two jewelers, Serena and Haley. They can either devote their time to making bracelets or making necklaces. Refer to Table 2-6. What is Haley's opportunity cost of making a bracelet? 2 necklaces 3 bracelets 1 1/3 necklaces 3/4 of a bracelet

1 1/3 necklaces

Table 2-6 shows the output per week of two jewelers, Serena and Haley. They can either devote their time to making bracelets or making necklaces. Refer to Table 2-6. What is Haley's opportunity cost of making a necklace? 3/4 of a bracelet 1 1/3 necklaces 2 necklaces 3 bracelets

3/4 of a bracelet

Comparative advantage means the ability to produce a good or service at a lower selling price than any other producer. of a higher quality than any other producer. at a lower opportunity cost than any other producer. at a higher profit level than any other producer.

Correct at a lower opportunity cost than any other producer.

An increase in the price of pineapples will result in an increase in the supply of pineapples. a decrease in the demand for pineapples. a smaller quantity of pineapples supplied. a larger quantity of pineapples supplied.

a larger quantity of pineapples supplied.

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

a smaller quantity of GPS systems supplied.

Which of the following would cause a decrease in the supply of milk? an increase in the number of firms that produce milk an increase the price of a product that producers sell instead of milk an increase in the price of cookies (assuming that milk and cookies are complements) a decrease in the price of milk

an increase the price of a product that producers sell instead of milk

A supply schedule 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. is the relationship between the supply of a product and the cost of producing the product. is a curve that shows the relationship between the price of a product and the quantity of the product supplied. is a table that shows the relationship between the price of a product and the quantity of the product supplied.

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

The supply curve for watches shows the relationship between the price of watches and the quantity of watches supplied. is downward sloping. 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. shows the supply of watches consumers are willing and able to buy at any given price.

shows the relationship between the price of watches and the quantity of watches supplied.

An increase in the quantity of a product supplied is caused by an increase in the price of the product.

True

Quantity supplied refers to the amount of a good or service that a firm is willing and able to supply at a given price.

True

What is the difference between an "increase in supply" and an "increase in quantity supplied"? There is no difference between the two terms; they both refer to a movement along a given supply curve. 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. There is no difference between the two terms; they both refer to a shift of the supply curve. 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.

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.

All else equal, as the price of a product falls, the quantity supplied increases.

False

Table 2-6 shows the output per week of two jewelers, Serena and Haley. They can either devote their time to making bracelets or making necklaces. Refer to Table 2-6. Which of the following statements is true? Haley has a comparative advantage in making bracelets and Serena in making necklaces. Serena has a comparative advantage in making both products. Haley has a comparative advantage in making both products. Haley has a comparative advantage in making necklaces and Serena in making bracelets.

Haley has a comparative advantage in making bracelets and Serena in making necklaces.

Table 2-6 shows the output per week of two jewelers, Serena and Haley. They can either devote their time to making bracelets or making necklaces. Refer to Table 2-6. Which of the following statements is true? Haley has an absolute advantage in making necklaces and Serena in making bracelets. Haley has an absolute advantage in making bracelets and Serena in making necklaces. Serena has an absolute advantage in making both products. Haley has an absolute advantage in making both products.

Haley has an absolute advantage in making bracelets and Serena in making necklaces.

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? The demand curve shifted to the right. The supply curve shifted to the right. The demand curve shifted to the left. The supply curve shifted to the left.

The supply curve shifted to the left.

In February, market analysts predict that the price of titanium will rise in March. What happens in the titanium market in February, holding everything else constant? The demand curve shifts to the left. The quantity of titanium demanded and the quantity of titanium supplied both increase. The supply curve shifts to the left. The supply curve shifts to the right.

The supply curve shifts to the left.

In October, market analysts predict that the price of platinum will fall in November. What happens in the platinum market in October, holding everything else constant? The demand curve shifts to the right. The supply curve shifts to the left. The quantity of platinum demanded and the quantity of platinum supplied both increase. The supply curve shifts to the right.

The supply curve shifts to the right.

If the United States placed an embargo on Swedish products, what would happen in the U.S. market for Swedish furniture? The supply curve would shift to the right. The supply curve would shift to the left. The demand curve would shift to the right. The demand curve would shift to the left.

The supply curve would shift to the left.

Danielle Ocean pays for monthly pool maintenance for her home swimming pool. Last week the owner of the pool service informed Danielle that he will have to raise his monthly service fee because of increases in the price of pool chemicals. How is the market for pool maintenance services affected by this? There is a decrease in the demand for pool maintenance services. There is a decrease in the supply of pool maintenance services. There is a decrease in the quantity of pool maintenance services supplied. There is an increase in the supply of pool maintenance services.

There is a decrease in the supply of pool maintenance services.

Product & Production per week: Dylan has a a comparative advantage and an absolute advantage in making shirts. a comparative advantage but not an absolute advantage in making shirts. a comparative advantage and an absolute advantage in making pants. a comparative advantage but not an abolute advantage in making pants. none of these.

a comparative advantage and an absolute advantage in making shirts.

Product & Production per week: Bree has a comparative advantage and an absolute advantage in making tacos. a comparative advantage but not an absolute advantage in making tacos. a comparative advantage and an absolute advantage in making enchiladas. a comparative advantage but not an abolute advantage in making enchiladas. none of these.

a comparative advantage and an absolute advantage in making tacos.

Production per day (Bushels): Taylor has a comparative advantage and an absolute advantage in picking cherries a comparative advantage but not an absolute advantage in picking cherries. a comparative advantage and an absolute advantage in picking apples. a comparative advantage but not an abolute advantage in picking apples. none of these.

a comparative advantage and an absolute advantage in picking apples.

Last year, the Pottery Palace supplied 8,000 ceramic pots at $40 each. This year, the company supplied the same quantity of ceramic pots at $55 each. Based on this evidence, The Pottery Palace has experienced an increase in the quantity supplied. a decrease in supply. an increase in supply. a decrease in the quantity supplied.

a decrease in supply.

Ranchers can raise either cattle or sheep on their land. Which of the following would cause the supply of sheep to increase? an increase in the price of sheep an increase in the price of sheep feed a decrease in the price of cattle an increase in the demand for cattle

a decrease in the price of cattle

An increase in the price of off-road vehicles will result in a smaller quantity of off-road vehicles supplied. a larger quantity of off-road vehicles supplied. a decrease in the supply of off-road vehicles. an increase in the demand for off-road vehicles.

a large quantity of off-road vehicles supplied.

One would speak of a change in the quantity of a good supplied, rather than a change in supply, if prices of substitutes in production change. the cost of producing the good changes. the price of the good changes. supplier expectations about future prices change.

the price of the good changes.

Production per day (Bushels): The producer with the least opportunity cost of picking cherries is the producer who gives up the fewest apples to pick a bushel of cherries. the producer who can pick the most apples per bushel of cherries given up. the producer who can pick the most cherries. the producer who can pick the fewest apples. the producer who can pick the most apples per bushel of cherries given up AND the producer who can pick the most cherries.

the producer who gives up the fewest apples to pick a bushel of cherries.

Product & Production per week: The producer with the least opportunity cost of making a taco is the producer who gives up the fewest enchiladas to make a taco. the producer who can make the most enchiladas per taco given up. the producer who can make the most tacos. the producer who can make the fewest enchiladas. the producer who can make the most enchiladas per taco given up AND the producer who can make the most tacos.

the producer who gives up the fewest enchiladas to make a taco.

Product & Production per hour: The producer with the least opportunity cost of making a shirt is the producer who gives up the fewest pants to make a shirt. the producer who can make the most pants per shirt given up. the producer who can make the most shirts. the producer who can make the fewest pants. the producer who can make the most pants per shirt given up AND the producer who can make the most shirts.

the producer who gives up the fewest pants to make a shirt.

If, in the market for oranges, the supply has increased then the supply curve for oranges has shifted to the right. the supply curve for oranges has shifted to the left. there has been a movement downwards along the supply curve for oranges. there has been a movement upwards along the supply curve for oranges.

the supply curve for oranges has shifted to the right.

If in the market for peaches the supply curve has shifted to the left, the quantity of peaches supplied has increased. the supply of peaches has decreased. the quantity of peaches supplied has decreased. the supply of peaches has increased.

the supply of peaches has decreased.