econ final

Absolute advantage is found by comparing different producers'

Input requirement per unit of output

Another word for "factors of production" is

Inputs

Something that induces a person to act is called

Incentive

Suppose in the market for banana. When the price is $2, the quantity demanded for banana is 13, and the quantity supplied is 10. What's the amount of shortage in the market? Answer:

3

What's the opportunity of Fish in Peru?

3/5 Corn

Market for flat-screen TVs: Demand: Qd=2,600-5P Supply: Qs=-1000 +10P What would be the amount of surplus if a price floor is imposed at price of $255? Answer:

225)

Suppose the supply and demand equation are given as follow: Demand: Qd=141-4*p Supply: Qs=12+1*p What's the equilibrium price? (Hint: enter your answer in 2 decimal places)

25.80

Suppose the supply and demand equation are given as follow: Demand: Qd=131-2*p Supply: Qs=10+2*p What's the equilibrium price? (Hint: enter your answer in 2 decimal places)

30.25

Market for flat-screen TVs: Demand: Qd=2,600-5P Supply: Qs=-1000 +10P What would be the amount of surplus if a price floor is imposed at price of $260? Answer:

300

What is the amount of tax revenue collected by government?

420

Suppose the supply and demand equation are given as follow: Demand: Qd=103-4*p Supply: Qs=10+3*p What's the equilibrium quantity? (Hint: enter your answer in 2 decimal places) Answer:

49.86

Which one of the following is an example of perfectly competitive market?

Bananas

A price ceiling is binding when it is set

Below the equilibrium price, cause a shortage

When countries realize their comparative advantage and specialize in their advantage, the total production in the world will

Rise

If tax is levied on buyers of the product, the demand will

Shift down

Refer to the figure, which arrow represents the flow of income payments?

D

Which demand curve represents the most elastic demand?

D1

The term "invisible hand" refers to

Free market

Demand is elastic if the price elasticity of demand is

Greater than 1

If tax is levied on sellers of the product, the supply curve will

Shift up

Assume that England and Spain can switch between producing cheese and producing bread at a constant rate. Labor Hours Needed to Make 1 Unit of Number of Units Produced in 24 Hours Cheese Bread Cheese Bread England 2 3 12 8 Spain 3 6 8 4 Which of the following statement is correct?

Spain has the comparative advantage in Cheese

What is opportunity cost of an item?

What you must give up to get that item.

Suppose the cost of driving a 20 seat bus is $500 and there are 5 empty seats on a bus. The marginal cost of one additional passenger is

$0

What is the tax burden on the sellers?

$1

Equilibrium price and quantity are,

$25 and 400 units

Consider Jake's decision to go to college. If he goes to college, he will spend $17,000 on tuition, $13,000 on room and board, and $1,500 on books. If he does not go to college, he will earn $25,000 working in a store and spend $11,000 on room and board. Jake's cost of going to college is

$45,500

What is the amount of tax per unit?

$4

Consider Jason's decision to go to college. If he goes to college, he will spend $25,000 on tuition, $10,000 on room and board, and $3,000 on books. If he does not go to college, he will earn $22,000 working in a store and spend $9,000 on room and board. Jason's cost of going to college is

$51,000

Price of ErasersQuantity Demanded of ErasersQuantity Demanded of Pencils0.6029221.302415 Using the above information and the midpoint method, what's the cross price elasticity between pencils and erasers when the price of erasers change from $0.60 to $1.30? (Hint: enter your answers in 2 decimals)

(-0.51)

Quantity Demanded (income = $10,000/year)Quantity Demanded (income=$20,000/year)1112 When her income increases from $10000 to $20000, as shown in the accompanying table, what's Mary's income elasticity of demand for Uber ride? (Hint: use the midpoint method and enter your answer in 2 decimals)

(0.13)

Suppose US and China are the only two countries in the world. Both countries can produce computer and wheat. The following table describes their maximum output per day. Use this table to answer the following question. ComputerWheatUS1,5501,250China1,0501,500 US's opportunity cost of computer is _____ wheat? (hint: enter your answer in 2 decimal places)

(0.81)

Suppose US and China are the only two countries in the world. Both countries can produce computer and wheat. The following table describes their maximum output per day. Use this table to answer the following question. ComputerWheatUS1,7501,350China1,2001,300 China's opportunity cost of wheat is _____ computer? (hint: enter your answer in 2 decimal places)

(0.92)

Suppose US and China are the only two countries in the world. Both countries can produce computer and wheat. The following table describes their maximum output per day. Use this table to answer the following question. ComputerWheatUS1,9001,050China9001,300 China's opportunity cost of computer is _____ wheat? (hint: enter your answer in 2 decimal places)

(1.44)

Suppose in the market for banana. When the price is $5, the quantity demanded for banana is 7, and the quantity supplied is 19. What's the amount of surplus in the market? Answer:

(12)

Suppose the supply and demand equation are given as follow: Demand: Qd=111-4*p Supply: Qs=12+1*p What's the equilibrium quantity? (Hint: enter your answer in 2 decimal places)

(31.80)

Suppose the supply and demand equation are given as follow: Demand: Qd=144-3*p Supply: Qs=14+1*p What's the equilibrium price? (Hint: enter your answer in 2 decimal places) Answer:

(32.50)

Suppose in the market for banana. When the price is $2, the quantity demanded for banana is 12, and the quantity supplied is 8. What's the amount of shortage in the market? Answer:

(4)

Suppose the supply and demand equation are given as follow: Demand: Qd=121-3*p Supply: Qs=25+1*p What's the equilibrium quantity? (Hint: enter your answer in 2 decimal places) Answer:

(49.00)

Suppose the supply and demand equation are given as follow: Demand: Qd=137-4*p Supply: Qs=16+3*p What's the equilibrium quantity? (Hint: enter your answer in 2 decimal places) Answer:

(67.86)

Suppose the supply and demand equation are given as follow: Demand: Qd=150-4*p Supply: Qs=12+3*p What's the equilibrium quantity? (Hint: enter your answer in 2 decimal places)

(71.14)

Market for flat-screen TVs: Demand: Qd=2,600-5P Supply: Qs=-1000 +10P What would be the amount of shortage if a price ceiling is imposed at price of $190? Answer:

(750)

Price of ErasersQuantity Demanded of ErasersQuantity Demanded of Pencils0.6025211.502118 Using the above information and the midpoint method, what's the cross price elasticity between pencils and erasers when the price of erasers change from $0.60 to $1.50? (Hint: enter your answers in 2 decimals) Answer:

-0.18

Quantity Demanded (income = $10,000/year)Quantity Demanded (income=$20,000/year)1214 When her income increases from $10000 to $20000, as shown in the accompanying table, what's Mary's income elasticity of demand for Uber ride? (Hint: use the midpoint method and enter your answer in 2 decimals) Answer:

0.23

Price of ErasersQuantity Demanded of ErasersQuantity Demanded of Pencils0.5029211.202317 Using the above information and the midpoint method, what's the elasticity of erasers when the price changes from $0.50 to $1.20? (Hint: enter your answers in 2 decimals) Answer:

0.28

Price of ErasersQuantity Demanded of ErasersQuantity Demanded of Pencils0.5026231.401817 Using the above information and the midpoint method, what's the elasticity of erasers when the price changes from $0.50 to $1.40? (Hint: enter your answers in 2 decimals)

0.38

Suppose US and China are the only two countries in the world. Both countries can produce computer and wheat. The following table describes their maximum output per day. Use this table to answer the following question. ComputerWheatUS1,8001,400China9501,250 US's opportunity cost of computer is _____ wheat? (hint: enter your answer in 2 decimal places) Answer:

0.78

Suppose US and China are the only two countries in the world. Both countries can produce computer and wheat. The following table describes their maximum output per day. Use this table to answer the following question. ComputerWheatUS1,8501,400China1,1501,350 China's opportunity cost of wheat is _____ computer? (hint: enter your answer in 2 decimal places) Answer:

0.85

Suppose US and China are the only two countries in the world. Both countries can produce computer and wheat. The following table describes their maximum output per day. Use this table to answer the following question. ComputerWheatUS1,2501,400China1,0001,450 US's opportunity cost of wheat is _____ computer? (hint: enter your answer in 2 decimal places)

0.89

Suppose US and China are the only two countries in the world. Both countries can produce computer and wheat. The following table describes their maximum output per day. Use this table to answer the following question. ComputerWheatUS1,3001,050China1,2001,300 US's opportunity cost of wheat is _____ computer? (hint: enter your answer in 2 decimal places) Answer:

1.24

Suppose US and China are the only two countries in the world. Both countries can produce computer and wheat. The following table describes their maximum output per day. Use this table to answer the following question. ComputerWheatUS1,5001,000China9501,300 China's opportunity cost of computer is _____ wheat? (hint: enter your answer in 2 decimal places) Answer:

1.37

Suppose the percentage change in price is 30%, and the percentage change in quantity is 59%. What's the price elasticity of demand for apple? (Hint: enter your answer in 2 decimal places) Answer:

1.97

Suppose the supply and demand equation are given as follow: Demand: Qd=102-4*p Supply: Qs=19+3*p What's the equilibrium price? (Hint: enter your answer in 2 decimal places) Answer:

11.86

Suppose in the market for banana. When the price is $2, the quantity demanded for banana is 20, and the quantity supplied is 7. What's the amount of shortage in the market? Answer:

13

Market for flat-screen TVs: Demand: Qd=2,600-5P Supply: Qs=-1000 +10P What would be the amount of shortage if a price ceiling is imposed at price of $230? Answer:

150

Suppose the supply and demand equation are given as follow: Demand: Qd=126-3*p Supply: Qs=16+3*p What's the equilibrium price? (Hint: enter your answer in 2 decimal places) Answer:

18.33

Suppose the percentage change in price is 26%, and the percentage change in quantity is 53%. What's the price elasticity of demand for apple? (Hint: enter your answer in 2 decimal places) Answer:

2.04

The following table shows the demand schedule for a particular good. Price Quantity $20 0 $16 3 $12 6 $8 9 $4 12 $0 15 Using the midpoint method, what is the price elasticity of demand when price rises from $12 to $16

2.33

Assume that England and Spain can switch between producing cheese and producing bread at a constant rate. Labor Hours Needed to Make 1 Unit of Number of Units Produced in 24 Hours Cheese Bread Cheese Bread England 2 3 12 8 Spain 3 6 8 4 What's the opportunity cost of Cheese in England

2/3 Bread

What is the opportunity cost moving rom point A to B?

20 dryers

Suppose in the market for banana. When the price is $5, the quantity demanded for banana is 10, and the quantity supplied is 16. What's the amount of surplus in the market? Answer:

6

Suppose in the market for banana. When the price is $5, the quantity demanded for banana is 9, and the quantity supplied is 15. What's the amount of surplus in the market? Answer:

6

Production Possibilities for FootLocker Shoes Socks 800 0 600 400 400 700 200 900 0 1000 What is the opportunity cost to Footlocker of increase the production of shoes from 400 to 800?

700 socks

Suppose the supply and demand equation are given as follow: Demand: Qd=136-3*p Supply: Qs=14+3*p What's the equilibrium quantity? (Hint: enter your answer in 2 decimal places) Answer:

75.00

Suppose the supply and demand equation are given as follow: Demand: Qd=128-2*p Supply: Qs=25+2*p What's the equilibrium quantity? (Hint: enter your answer in 2 decimal places) Answer:

76.5

Assume that England and Spain can switch between producing cheese and producing bread at a constant rate. Labor Hours Needed to Make 1 Unit of Number of Units Produced in 24 Hours Cheese Bread Cheese Bread England 2 3 12 8 Spain 3 6 8 4 If both country decide to specialize in the good they have the comparative advantage in, what is the combine production between the two countries?

8 cheese and 8 bread

Suppose the supply and demand equation are given as follow: Demand: Qd=141-3*p Supply: Qs=19+3*p What's the equilibrium quantity? (Hint: enter your answer in 2 decimal places) Answer:

80

If this economy spend all its resources producing dryers, how many dryers can it produce?

80 dryers

Suppose in the market for banana. When the price is $2, the quantity demanded for banana is 20, and the quantity supplied is 11. What's the amount of shortage in the market? Answer:

9

It is possible for this economy to produce

All of the above

A legal maximum price a good can be charged is called price

Ceiling

Which of the following economy is operating under the centrally planned economy?

Cuba

The following table shows the demand schedule for a particular good. Price Quantity $20 0 $16 3 $12 6 $8 9 $4 12 $0 15 At price of $16, if company wants to increase total revenue, it should

Decrease price

Good A and Good B are complements. If the price of good A increases, then the

Demand for good B decreases

Assume that England and Spain can switch between producing cheese and producing bread at a constant rate. Labor Hours Needed to Make 1 Unit of Number of Units Produced in 24 Hours Cheese Bread Cheese Bread England 2 3 12 8 Spain 3 6 8 4 Which of the following statement is correct?

England has the absolute advantage in both cheese and bread

At price of $25, there is a(n),

Equilibrium

A legal minimum price a good can be charged is called price

Floor

In the circular-flow diagram, who buys the good and services?

Households

What do points outside of the production possibility curve represent?

Impossible

Consider iPhone as a normal good, an increase in consumer income will lead to

Increase in the price and increase in the quantity for iPhone.

The following table shows the demand schedule for a particular good. Price Quantity $20 0 $16 3 $12 6 $8 9 $4 12 $0 15 At price of $4, if company wants to increase total revenue, it should

Increase price

What do points inside of the PPF represent?

Inefficient

What one of the following is not a demand shifter

Input cost

Demand is inelastic if the price elasticity of demand is

Less than 1

If income elasticity is positive, this good must be

Normal good

If the income increase lead to demand increase, this implies that the good is

Normal goods

Which of the following economy is under the centrally planned economy?

North Korea

A government imposed price floor at $6, it's

Not binding, and nothing happens

In the circular-flow diagram, households

Own the factors of productions.

The phrase "no such thing as a free lunch" means

People face tradeoff for their decisions

Economic activities in the market economy are guided by

Price and self-interest

Which one of the following is not a supply shifter

Price of the good

Which one of the following is an example of perfectly competitive market?

Printer papers

The income elasticity of demand measures how much

Quantity demanded changes due to a change in income

The price elasticity of demand measures how much

Quantity demanded changes due to a change in price

At which point is the economy producing the maximum number of windows?

R

If cross price elasticity is positive, these goods must be

Substitute good

The opportunity cost of an item is

What you must give up to get that item.

What factor decides between buyers and sellers who pay a bigger portion of the tax?

Whoever is more inelastic

Which one of the following is an example of substitute goods

iPhone and Samsung Galaxy

Which one of the following is not part of the factors of production?

money