Econ 202, quiz two

consider two individuals celia and sondra who produce bracelets and pendants. the above table shows how much of each good celia and sondra can produce in one hour. celia's opportunity cost of one bracelet is a. 1/5 of a pendant b. 1/4 of a pendent c. 2 pendents d. 4 pendent

a. 1/5 of a pendant

If two countries are producing the same two products it is mutually beneficial if the countries specialize then trade. How is it determined who specializes in the production of which product? a. by the lowest opportunity cost of production, comparative advantage b. by the highest opportunity cost of production, comparative advantage c. by developing a system of trade more advanced than a barter economy d. one should produce what they have an absolute advantage in producing

a. by the lowest opportunity cost of production, comparative advantage

according to the law of increasing opportunity costs a. the slope of the supply curve is positive b. the slope of the demand curve is negative c. the risk involved in producing a good increases as more of the good is produced d. the amount of money it takes to produce a good increases as more of the good is produced

a. the slope of the supply curve is positive

in a market system what provides individuals the information needed to make decisions? a. insurance b. prices c. patents d. government

b. prices

if the actual price of t-shirt is $15, there is a. shortage of 8 t-shirts b. surplus of 8 t-shirts c. shortage of 10 t-shirts d. surplus of 10 t-shirts

b. surplus of 8 t-shirts

the law of demand can be explained as a. a lot of people wanting the same thing b. the higher the price, the smaller the quantity demanded, ceteris paribus c. people are willing to make limited sacrifices to acquire products d. legal reasons people make purchases in the marketplace

b. the higher the price, the smaller the quantity demanded, ceteris paribus

when consumers are willing to but more than the producers are willing to sell a.n there is a surplus of the product in the market b. there is a shortage for the product in the market c. the market is in equilibrium d. the demand curve will shift until the quantity supplied equals the quantity demanded

b. there is a shortage for the product in the market

specialization and trade exploit differences in productivity of workers and a. only benefit the exporter b. only benefit importer c. make everyone better off d. make everyone worse off

c. make everyone better off

The general relationship between economic freedom and per capita (per person) income is a. random- no relationship b. negative- higher economic freedom leads to a lower per capita income c. positive-higher economic freedom leads to a higher capita income d. consistent- per capita income is the same regardless of the economic freedom level

c. positive-higher economic freedom leads to a higher capita income

the law of supply indicates that a. the product supply curve is downward sloping b. producers will offer more of a product at low prices than they will at high prices c. producers will offer more of a product at high prices than they will at low prices d. consumers will purchase less of a good at high prices than they will at low prices

c. producers will offer more of a product at high prices than they will at low prices

when there is a change in the quantity demanded it means that a. the hours the customer can buy products each day have increased b. the number of products in the inventory have increased c. the quantity a consumer is willing to buy changes when the price changes d. the selling price of the products has not changed

c. the quantity a consumer is willing to buy changes when the price changes

when a market is in equilibrium a. everyone has all they want of the commodity in question b. the supply curve has the same slope as the demand curve c. there is no shortage and no surplus at the equilibrium price d. the number of potential buyers in the market is exactly equal to the number of potential sellers in the market

c. there is no shortage and no surplus at the equilibrium price

which of the followinf was not inthe top 10 countries in terms of economic freedom according to the Heritage Foundation (as shown and dicussed in class) a. Hong Kong b. New Zealand c. Australia d. United States

d. United States

in a market economy, what provides potential investors with reliable information about the financial performance of a firm a. contracts b. insurance c. patents d. accounting rules

d. accounting rules

the general relationship of economic freedom and the share of income of the poorest 10% of a country's citizens is a. random- no relation b. negative- higher economic freedom leads to a lower share of income to the poorest 10% c. positive - higher economic freedom leads to a higher share of income to the poorest 10% d. consistent - the poorest 10% receive the same share of income regardless of the level of economic freedom

d. consistent - the poorest 10% receive the same share of income regardless of the level of economic freedom

a response a price change would be described as a a. shifting in demand curve b. change in the slope of a demand curve c. change in the elasticity of a demand curve d. movement along the existing demand curve

d. movement along the existing demand curve

the money payment made to owners of the land, labor, capital, and entrepreneurial ability are a. interest, wages, rent, and profits respectively b. rent, wages, dividends, and interest respectively c. rent, wages, profit, and dividends respectively d. rent, wages, interest, and profits respectively e. return, wages, interest, and dividends respectively

d. rent, wages, interest, and profits respectively

a change in the quantity supplied of a product is the result of a change in a. consumer income b. the state of production technology c. the cost of producing the product d. the price of the product

d. the price of the product

if the actual price of t-shirts is $10, we would expect that a. demand will decrease until quantity demanded equals quantity supplied b. supply will increase until quantity demanded equals quantity supplied c. price will increase until quantity demanded equals quantity supplied d. there will be no change since the market is in equilibrium

d. there will be no change since the market is in equilibrium