Econ Exam Recap
Which of the following would cause the demand for hot dog buns to increase?
a fall in the price of hot dogs
Which of the following choices contains only factors that cause the supply curve to shift to the right?
a rise in technology, a fall in the costs of production, a fall in taxes on output
The ability of one producer to produce one good or service using fewer inputs than another producer is:
absolute advantage
The quantity supplied is the:
amount of a good that firms are willing and able to sell at a particular price during a given period of time.
. Table: Maximum Willingness to Pay The column headers of the table reads, Name; willingness to pay for 1 pound of bananas. The data are as follows: Jill is willing to pay 2 dollars for 1 pound of bananas; Joe is willing to pay 1.25 dollars for 1 pound of bananas; Jane is willing to pay 0.75 dollars for 1 pound of bananas; and James is willing to pay 0.25 dollars for 1 pound of bananas. The table shows four individuals' maximum willingness to pay for one pound of bananas. If the market price of bananas is $0.50/lb, what is the total consumer surplus in the market?
$2.50
(Figure: Potatoes) Refer to the figure. If the price of potatoes is $8 a pound, what is the consumer surplus received? A graph of a demand curve. The graph plots quantity of potatoes in thousands of pounds on the horizontal axis and the price per pound of potato on the vertical axis. The demand curve has a negative slope and originates at the vertical axis corresponding to a price of 16 dollars and ends corresponding to 120 thousand pounds of potatoes on the horizontal axis.
$240,000
Firms are willing and able to sell 100 guitars per day at a price of $250 per guitar. What price will firms require to sell 100 guitars per day if there is a tax of $15 per guitar?
$265
There are 100 consumers, each of whom values a concert ticket at a unique whole number dollar amount between $1 and $100. One customer is willing to pay $1, a second is willing to pay $2, a third is willing to pay $3, and so on. An unlimited number of concert tickets are on sale for $15 each. Create a simple demand curve to represent this scenario and using that curve calculate the total consumer surplus.
$3,612.50
(Figure: Producer Surplus) Refer to the figure. What is the producer surplus at a price of $2 per unit? A graph plots a supply curve with Quantity on the horizontal axis and Price on the vertical axis. The supply curve has a positive slope and contains two marked points that are denoted with dashed lines at each price and quantity demanded combination. The data are approximately as follows. The curve begins at a point corresponding to a price of 1 dollar on the vertical axis. A point is marked on the curve that corresponds to10 units at a price of 2 dollars per unit. Another point is also marked for 20 units at a price of 3 dollars per unit. These points are also denoted with dashed lines at each price and quantity demanded combination.
$5
(Figure: Oil) To produce 30 million barrels of oil per day, the minimum price per unit that producers in the diagram require is: A graph plots a supply curve with Quantity of oil in millions of barrels per day on the horizontal axis and price per barrel on the vertical axis. The supply curve has a positive slope and contains two marked points that are denoted with dashed lines at each price and quantity demanded combination. The data are approximately as follows. The curve begins at a point corresponding to 10 million barrels of oil per day at a price of 20 dollars per barrel. Another point is marked corresponding to 30 million barrels of oil per day at a price of 60 dollars per barrel. Correlations are also marked for 20 million barrels of oil per day at a price of 40 dollars per barrel and 40 million barrels of oil per day at a price of 80 dollars per barrel. These are also denoted with dashed lines at each price and quantity demanded combination.
$60.
Barrels of Oil A table with two columns is shown. The data in the table are as follows. The column headers read, Country and Minimum willingness to sell a single barrel of oil. Country A has a minimum willingness to sell at 32.00 dollars; Country B has a minimum willingness to sell at 16.00 dollars; Country C has a minimum willingness to sell at 17.25 dollars; and Country D has a minimum willingness to sell at 56.99 dollars. Refer to the table. What is the total amount of producer surplus (per barrel of oil) earned by all four producers if the market price per barrel of oil is $51?
$87.75
Refer to the figure. How many tons of textiles does Australia give up to produce one ton of nickel? A graph plots a P P F for nickel and textiles for Australia and China. The graph plots Textiles in tons on the horizontal axis and Nickel in tons on the vertical axis. The P P F curve for Australia has a negative slope starting at 6 tons of Nickel and ending at 2 tons of Textiles. The curve for China also has a negative slope starting at 8 tons of Nickel and ending at 8 tons of Textiles.
1/3
Use the figure in which both Mexico and the United States each have 24 units of labor. The opportunity costs of producing one shirt are: Two graphs show P P F for shirts and computers for Mexico and U S. The graphs have computers on the horizontal axis and shirts on the vertical axis. The graph for Mexico has the P P F curve starting at 12 shirts on the vertical axis and ending at 2 computers on the horizontal axis. The graph for the U S has the P P F curve starting at 24 shirts on the vertical axis and ending at 24 computers on the horizontal axis.
1/6 of a computer for Mexico and one computer for United States.
Refer to the figure. What is the maximum amount of nickel China can produce? A graph plots a P P F for nickel and textiles for Australia and China. The graph plots Textiles in tons on the horizontal axis and Nickel in tons on the vertical axis. The P P F curve for Australia has a negative slope starting at 6 tons of Nickel and ending at 2 tons of Textiles. The curve for China also has a negative slope starting at 8 tons of Nickel and ending at 8 tons of Textiles.
8 tons
What is the maximum amount of textiles China can produce? A graph plots a P P F for nickel and textiles for Australia and China. The graph plots Textiles in tons on the horizontal axis and Nickel in tons on the vertical axis. The P P F curve for Australia has a negative slope starting at 6 tons of Nickel and ending at 2 tons of Textiles. The curve for China also has a negative slope starting at 8 tons of Nickel and ending at 8 tons of Textiles.
8 tons
Figure: Demand Curve A graph of a demand curve with quantity on the horizontal axis and price on the vertical axis. The demand curve has a negative slope. The demand curve contains two marked points that are denoted with dashed lines at each price and quantity demanded combination. The first point is at a price of 6 dollars and a quantity of 10 units. The second point is at a price of 3.75 dollars and a quantity of 15 units. Which statement is TRUE regarding the figure?
At a price of $6 per unit, consumers are willing and able to buy 10 units.
Which of the following statements is TRUE? Total consumer surplus is represented graphically by the area beneath the demand curve. Total consumer surplus is represented graphically by the area above the demand curve. Consumer surplus is the difference between the maximum price a consumer is willing to pay for a good or service and its market price. Bill is willing to pay $10 for a pound of clay. If he buys a pound of clay at a market price per pound of $5, his consumer surplus is $2.
Consumer surplus is the difference between the maximum price a consumer is willing to pay for a good or service and its market price.
David sells his car, which he considers worthless, to Cameron for $200. Which of the following statements is TRUE?
David and Cameron must have different preferences for the car.
Suppose France can produce four phones or three computers with one unit of labor, and Sweden can produce one phone or two computers with one unit of labor. If France can trade only with Sweden, then the theory of comparative advantage suggests that:
France should specialize in producing phones and import computers from Sweden.
Two countries that specialize where they have a comparative advantage and then trade with each other will experience increases in: I. wages in both countries. II. total output in both countries. III. living standards in both countries.
I, II, and III
Which of the following statements is TRUE?
Specialization and trade raise wages in both countries that are party to the trade.
According to the table on iPhone and iPod production, which of the following is TRUE? A table has column headings, One i Phone and one i Pod. The row headers read, Canadian labor units and United States labor units. The Canadian labor units for One i Phone are 3 and for One i Pod are 4. The United States labor units for One i Phone are 2 and for One i Pod are 2.
The United States has an absolute advantage in producing both iPhones and iPods.
Suppose a famous baseball player, Alex Rodriguez, hires a high school student to paint his house. Which of the following is most likely TRUE?
The opportunity cost of painting a house is higher for Alex Rodriguez than for the high school student.
Imagine that millions of refugees move out of country A and into country X. This would cause the demand for housing in country A to _____ and the demand for housing in country X to _____.
decrease; increase
Specialization and trade can _____ the per unit cost of production because _____ .
decrease; it creates economies of scale associated with large-scale production
As the price of lead falls (a key input in the production of automobile batteries), the costs of producing batteries decreases, shifting the supply curve of batteries:
down and to the right
Quantity demanded:
is the amount that buyers are willing and able to buy at a particular price
According to the theory of comparative advantage, the reason wages are lower in China than in the United States is:
lower productivity in China.
The quantity of DVDs that people plan to buy this month will increase when:
movie theater ticket prices increase.
Division of knowledge refers to:
people learning different tasks in which they specialize.
The difference between the market price and the minimum price at which a seller is willing to sell a certain quantity of a good is:
producer surplus.
Use the above figure in which both Mexico and the United States each have 24 units of labor. Mexico has a comparative advantage in ______, and the United States has a comparative advantage in ______. Two graphs show P P F for shirts and computers for Mexico and U S. The graphs have computers on the horizontal axis and shirts on the vertical axis. The graph for Mexico has the P P F curve starting at 12 shirts on the vertical axis and ending at 2 computers on the horizontal axis. The graph for the U S has the P P F curve starting at 24 shirts on the vertical axis and ending at 24 computers on the horizontal axis.
shirts; computers
The demand curve:
shows how much buyers are willing and able to buy at different prices.
Use the figure in which both Mexico and the United States each have 24 units of labor. The opportunity costs of producing one computer are: Two graphs show P P F for shirts and computers for Mexico and U S. The graphs have computers on the horizontal axis and shirts on the vertical axis. The graph for Mexico has the P P F curve starting at 12 shirts on the vertical axis and ending at 2 computers on the horizontal axis. The graph for the U S has the P P F curve starting at 24 shirts on the vertical axis and ending at 24 computers on the horizontal axis.
six shirts for Mexico and one shirt for the United States.
Globalization is:
the advance of human cooperation across national boundaries.
The production possibilities frontier shows:
the combinations of outputs a country can produce given its resources and productivity.