ECON Final- Patel

If Columbia would like to move from producing the bundle of goods represented by point H to point B they must

reduce unemployment and inefficiency

if an individuals demand for frozen dinners increasing when the price of steak rises, we would infer that:

steak and frozen dinners are substitutes for this person

the demand for which of the following is likely to be the most price inelastic?

transportation

true

the supply of bread is more elastic than the supply of cars

in which of the following instances would the deadweight loss of the tax on airline tickets be the highest?

the tax on airline tickets increases from $10 per ticket to $59 per ticket

True

the unintended consequences of tariffs implemented to rpotect a countrys domestive sugar industry will resukt in higher prices and job losses in other industries that rely on sugar as a production input

suppose that michael notices that minivans are typically filled with alrge families with more than two children. he concludes that driving minivans causes families to become larger. which of the following is true with regard to pitfalls in economic thinking?

the violation of the law of comparative advantage

if the equilibrium wage exceeds the minimum wage then ____

there will be no unemploment

refer to figure 3-4, at price $15:

there would be a shortage of 300 units, leading to an upward pressure on prices

which of the following is likely to have the most elastic demand?

toilet paper

all of the following are examples of "command and control" solutions to externalities except

trading in pollution rights between electrical utility companies

false

in the north korean economy, the problem of "what to produce" is solved primarly by people advertising their wants

asymmetric information occurs when:

one party in a transaction has more information than the other party

which price and quantity combination represents the social optimal level?

$1.80 ;35 units

pickleball has recently become popular in lex, and several people in our class are considering buying equipment... if new pickleball sets are currently selling for $55 per set, what is the total amount of consumer surple that will result for these customers?

$110

on the business side, there are four stores selling pickleball sets in lex... If the pickleball sets prices increase from $65 to $70, how much will producer surplus increase by?

$15

the equilibrium price nad quantity in the above figure 3-4 is:

$20 and $600 units

what is the total value of producer surplus lost before the imposition of tax?

$225

what is the total consumer surplus lost due to consumers leaving the market as the equilibrium price rises to the new equilibrium after the tax?

$36

when the price of wendy;s birgers increased by 10 percent the sale of frosty at wendys declined by 18 percent and teh sale of chicken mcnuggets increased by 3 percent. these facts siggest that the cross-price elasticity between wendys burger and chicken mcnuggets is ______ indicating that the two are_______

0.3; substitutes

suppose that at a price of $30 per month, there are 30,000 subscribers to netflix=Hulu combined service....Using mid point method for calculating elasticty, what is price of elasticity of demand?

1.4

for MARTIN, the opportunity cost of producing one pottery mug is:

1.5 pottery bowls

If columbia is producing 600 tons of blueberries, what is the maximum amount of coffee they can produce?

1200 tons

currently, john earnes $60,000 per year working at UK bookstore. teh income tax rate is %5 for income up to $40,000 and 20% for income greater than 40,000. what is johns marginal tax rate for additional 10,000 in income?

20%

how much revenue does the government generate from this tax

216

The per unit economic burden of the tax to produce is:

6

at the market failure quantity, by how many units does the market over/under produce or consume by?

7 units

consider the market for Hot dogs during UK football games at Two keys in lex. the management recently decided to decrease the prices of their hot dogs when UK football is in action. which arrow on the grpahs to the right shows the impact of a decrease in the prices of hot dogs?

A: line with arrow going down

Which of exhibits constant opportunity costs?

B: Line straight going down towards left

which of the following linear questions most accurately reflects DEBRAS PPF?

B=20-5/2M

what area on the graph represents the total amount of deadweight loss that results from the imposition of the tax?

C+E

Refer to Figure 2-2. Diamond works as an attorney for a corporation and is paid a salary in exchange for the legal services she preforms. which arrow represents income earned by Diamond?

D: Firms-->Markets for factors of production -->households

JUUL is one of the hottest e-cigarettes on the market. What is the direct result in the market of JUUL with the increased popularity of JUUL among the youth?

Demand for JUUL increases leading to an increase in equilibrium price

in which of the following cases is the coase theorem most likely to solve the externality?

Ed is allergic to his roomates cat

Mia is considering renovating a vintage bicycle and has already spent $250 in the restoration process. She foresees the potential to sell the bicycle for $500. After evaluating the situation, Mia realizes that an extra $350 worth of work is needed to increase the bicycle's value to potential buyers up to $500. Alternatively, she could choose to promptly sell the bicycle in its present condition for $200. Given these alternatives, what should mia decide to do?

Mia should opt to sell the bicycle immediately for $200

which of the following steps does an economist not take when studying the economy

Model the economy without any assumptions

use the following demand and supply fucntions to find equilibrium price and output: Demand: Qd=600-30P Supply Qs=-300+120P

P=$6 and Q=420

Which graph depicts the likely impact is Apple research team discovers a new and better technology for making cell phones while at the same time, political unrest in a country where they obtain corn fertilizer has made it difficult to get fertilizer?

PPF0 is lower than PPF1

The following table show Patel's marginal benefit for consuming Chai Latte popsicles from Three Moms Pops. The price of each popsicle is always $4.00:

Patel should eat 3 Chai Latte popsicles

false

The demand for beer is more elastic than the demand for milk. therefore, imposing a tax on the milk market will result in a greater deadweight loss compared to a tax on the beer market

greece, a major producer of olive oil, is experiencing a major drought. At the same time Income levels in europe are rising. Olive oil is considered a normal good. what would we expect to happen in the market for Olive oil?

The equilibrium price would increase, but the impact on the amount sold in the market would be indeterminate

suppose that the price elasticty of demand for Mindtap used in ECO201 is -2. if the price of Mindtap accounts rises by 10% what will happen to quantity of Mindtap accounts demanded?

The quantity demanded will decrease by 20%

true

and example of a positive externality if organ donation...

Local hospitals hire registered nurses and they hire physicians assistants... If we would like to test the theory, which of the the following elasticities should we calculate?

XD- cross price elasticity

false

a government program that provides free medical care to low income mothers with samll children is an example of govenermnet intervention in the market because of efficiency concersn

when considering the various resources, which of the following is most likely to represent CAPITAL?

a guitar used by a professional musician while on tour

"Rent controls" are an example of ____: a "minimum wage" is an example of _______

a price ceiling; a price floor

the rental car rates are increasing at tremendous rates in Hawaii... which of the following would be the least likely result of a binding price ceiling as the hawain government places a imposes one of the market for rental cars.

an accumilation of dirt in the interior or rental cars

True

apple can either produce Iwatch (W) or ipads (P). tehir production possibilities frontier is described by the equation W=10-2P. The opportunity cost of 1 ipad is 2 watches

anticipating an impending reccession, kroger must make its shelving decisions promptly... which sparkling water will Kroger shelf more of during a recession?

canada cry

Positive externalities are created when

company called GoodR picks up your edible food waste and donate it to a local non-profit

false

consider a market for subaru cars, buyers will lobby price floors and sellers will lobby for price ceilings

negative externalities are created when

cotopaxi

who has the absolute advatage in producing bowls?

debra

"Egg prices soaring--even more than for most other foods". in the market for Eggs, which of the following does not cause higher egg prices?

decreased transportation costs for egg distribution

false

delata airlines offers direct flights to chicago and aims to implement a multi-tiered pricing system to increase revenue...

false

demand for gas after 2 weeks of price increase is more elastic than demand for gas after 2 years of price increase

on a sunny day you feel thirsty and order a cold drink of cola from the local diner. still feeling thirsty, you continue to drink a few more glasses of cola. you soon realize that the last few cola drinks did not taste as good as the first drink of cola. this is an example of:

diminishing marginal benefits

true

government limits total carbon-dioxide emissions by all factories to 260,000 tons per ten years... this is an example of tradable permit system.

which of the following statements does not apply to a market economy?

government mandates that tesla hires engineers from kentucky

the Laffer curve illustrates that, in some circumstances, the government can reduce a tax on a good and increase the ______.

government's tax revenue

nike managers decide that their hats should be crafted indiviually by hand and not in factories by machines. what fundamental economic question are they addressing in the production of Nike hats?

how to produce hats?

true

if the state legislature in kentucky begins a new scholarship program offering money to high school students from kentucky who attend kentucky colleges and universities because they believe education imposes a positive externality we would sat that this is a market based economy

true

in the circular -flow diagram, lululemon selling yoga pants to bella is an example of an activity in the market of goods and services

Keenland wants to increase the total revenue generated by the horse racing in order to more easily cover operating expenses... based upon this infomation it appears as if the CEO believes that demand is _______ while the student intern belives that demand is _____.

inelastic; elastic

true

local taco increases the price of their tacos. this leads to a decrease consumer surplus

in the 1960s, the coca cola company voluntarily started a bottle return deposit program where they pair 5 cents for each glass... when considering the classification of policies designed to address externalities, this is an example of

market-based policy

according to the law of comparative advantage. if debra and martin were to specialize and trade with each other:

martin should produce mugs and debra should produce bowls

Panda cuisine orange chicken has undeclared milk and egg allergies. This information is NOT available to consumers. in this case:

more orange chicken will be produced and sold to consumers than is socially optimal

True

more oranges are grown in florida than north dakota becuase florida's warm climate gives it a comparative advantage in growing oranges.

the graph above represents what kind of externality?

negative externality

in singapore, youre registered as an organ donor automatically if you are over the age of 21. opting out, results in you being at the bottom in the organ priority list if you ever need a transplant. what can explain this policy?

negative incentives

False

patel's econ 201 students each won $1000 from a local lottery. they all decided to buy a bacon-scented mustaches. for them the bacon mustages is an inferior goodq

candice 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 becuase 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 :

people face tradeoffs

the "efficient" points on the graph are:

points A,B,C,D,E,F

Assume that Y represents the amount of daily snowfall in Lexington in inches and X represents the daily temperature for December in degrees Fahrenheit. The relationship between these two variables is most likely to be:

positive and deterministic

UK wants you to be successful in and out of the classroom. thats why were rewarding you with $50 deposits into you UK invests account when you complete tasks and build habits in these four categories; financial literacy, involvement this is an example of

positive incentive

The invisible hand coordinates economic activity through:

prices

consider the income tax structure depicted below: we would say this tax structure is:

progressive

supose that at a price of $30 per month there are 30,000 subscribers to netflix=Hulu combined service.... The demand for Netflix=Hulu service is:

relatively elastic

The phenomenon of scarcity stems from the fact that

resources are limited

Hops2go is Kentucky's first direct-to- home alchol delivery company... Based on info which of the following tables shows demand schedule for Hops2go?

schedule D

refer to the figure above. if the price ceiling is set at $4, what would be the outcome?

shortage of 2 units

True

social welfare is maximized when the market reaches its equilibrium price and quantity

based on the graph of the PPF above, we know that:

some of the resources used in production are better suited for growing blueberries and others are better suited for growing coffee

true

supply and demand curves that are completely vertical are perfectly inelastic

false

suppose the government places a $500 tax on luxury cars...

Lipstick and Make up are considered complementary goods. Because of this, one would predict that, holding all else constant, if the price of Lipstick increases, we would see:

the demand curve for make up shift to the left

the price of a ticket to Patel's favorite band Iron Maiden concert is set at $35. all the tickets for the concert sell out one hour before they go on sale and there are still 1000 fanes who wants to buy tickets. it follows that:

the equilibrium price of tickets to the concert is more than $35

if the internet helps buyers learn about the availability of products and find potential sellers more quickly:

the gains from trade will increase

electric vehicle are being pitched as cleaner, greener, and sustainable. electric cars use batteries made of rare materials... this is an example of:

the invisible handshake

True

the market demand for a starbucks coffee in the student center is the sum of all individual demand for the starbuck coffee in the student center

At Q=42

the market of inefficient and less Q needs to be produced

why did lionel messi choose to leave europe and play for a major league soccer, inter miami team, instead of continuing to play in top European leagues?

the opportunity cost of playing in europe was too high

which one of the following economic models depicts two variable that are positively related to each other?

the supply curve

If Lil John had not gone to the movies, he could have played squash, surfed the Internet, or earned $50 working at the computer center that night, in order of preference. It follows that the Lil jon's opp. cost of going to the movies:

was a squash game forgone

true

when the price of knee braces increased by 25 percent teh brace yourself company increases its quantity supplied of knee braces per week by 75 pecent

which of the following is a normative statement?

winters in arkansas are too cold