Econ

Bill Bonecrusher graduates from college with a choice of playing professional football at​ $2 million a year or coaching for​ $50,000 a year. He decides to play​ football, but eight years​ later, though he could continue to play football at​ $2 million a​ year, he quits football to make movies for​ $3 million a year. His opportunity cost of playing football at graduation was​ ________ and eight years later the opportunity cost of making movies was​ ________. a. $2 million; $3 million b. $50,000; $50,000 c. $50,000; $2 million d. $2 million; 2 million

$50,000; $2 million

When the price of a CD is​ $13 per​ CD, 39,000,000 CDs per year are supplied. When the price is​ $15 per​ CD, 41,000,000 CDs per year are supplied. What is the elasticity of supply for​ CDs? a. 2.86 b. 0.35 c. 0.05 d. 0.14

0.35

When the price of peanuts falls by 2 ​percent, the quantity demanded of peanuts increases by 2 percent. What is the price elasticity of demand for peanuts​?

1

The demand curve is P​ = 500minus20QD. The supply curve is P​ = 50 ​+ 20QS. At market​ equilibrium, the equilibrium quantity is​ ______ and the equilibrium price is​ ______ a. 11.3​; 275.00 b. 275.00​; 11.3 c.20​; 0.09 d.0.09​; 20

11.3​; 275.00

If you​ do, you​ won't be able to take your usual summer job that pays ​$12000 for the summer. The cost of tuition is ​$1000 and textbooks cost ​$300. You live with your​ family, which covers your living expenses of ​$1900. What is your opportunity cost of going to school this​ summer?

13,300

In one​ day, Brandon can either plow 10 acres or plant 20 acres. In one​ day, Christopher can either plow 14 acres or plant 14 acres. Which of the following statements about comparative advantage is​ correct? a. Brandon has a comparative advantage in both plowing and planting. b. Brandon has a comparative advantage only in planting. c. Brandon has a comparative advantage only in plowing. d. Christopher has a comparative advantage in both plowing and planting.

Brandon has a comparative advantage only in planting.

In the market for books​, the supply of books will decrease if any of the following occur except​ ______. a. in the number of book publishers b. an increase in the future expected price of a book. c. an increase in the price of paper d. a decrease in the price of a book

a decrease in the price of a book

Gustavo graduates from college and his income increases by ​$30000 a year. Nothing else changes. Gustavo decreases the quantity of Upper T dash shirts and potato chips that he buys and increases the quantity of stuffed olives that he buys. For Gustavo​, ​_______ a. stuffed olives are normal goods b. Upper T dash shirts and potato chips have become complements c. stuffed olives and potato chips are normal goods d. Upper T dash shirts and stuffed olives are inferior goods

stuffed olives are normal goods

The economic resource that organizes the use of other economic resources is a. land. b. labor c. entrepreneurship d. capital

entrepreneurship

Upper A decrease in the demand for sports cars brings a​ ______ in the price of a sports car and​ ______ in the quantity of sports cars supplied. a. rise​; a decrease b. all​; an increase c. rise​; an increase d. fall; a decrease

fall; a decrease

Which of the following statements are normative and which are​ positive? 1. We ought to drive our cars less and take public transportation more 2. When the inflation rate rises, the unemployment rate falls 3. Hurricanes cause damage to the Gulf Coast every year. 4. Goldfish are the best pets for children. a. option 1 and 2 are positive; and options 3 and 4 are normative b. option 1 and 4 are positive; and options 2 and 3 are normative c. option 2 and 3 are positive; and options 1 and 4 are normative d. option 3 and 4 are positive; and options 1 and 2 are normative

option 2 and 3 are positive; and options 1 and 4 are normative

Elizabeth owns a​ take-out counter. In an hour she can produce 10 sandwiches or 30 wraps. Ben also owns a​ take-out counter. In an hour he can produce 8 sandwiches or 8 wraps. ​Elizabeth's opportunity cost of 1 sandwich is​ ______. Ben's opportunity cost of 1 sandwich is​ ______. a. 0.33 wrap; 1 wrap b. 1 wrap; 0.33 wrap c. 1 wrap; 3 wrap d. 3 wraps; 1 wrap and Who has the comparative advantage in sandwiches? Who has the absolute advantage in both goods?

- 3 wraps; 1 wrap - Comparative advantage in sandwiches: Ben - Absolute advantage in both goods: Elizabeth

When the price of a loaf of garlic bread increases by 4 ​percent, the quantity of lasagna demanded decreases by 1 percent. Calculate the cross elasticity of demand for lasagna with respect to the price of a loaf of garlic bread. Meaning garlic bread and lasagna are? a. substitutes b. complements

- cross elasticity of demand for lasagna with respect to the price of a loaf of garlic bread is -25 - Complements

In one​ day, Brandon can either plow 10 acres or plant 20 acres. In one​ day, Christopher can either plow 14 acres or plant 14 acres. Brandon and Christopher can ​a. exchange, but only Christopher will gain from the exchange. b. gain from exchange if Brandon specializes in planting and Christopher specializes in plowing. c. gain from exchange if Brandon specializes in plowing and Christopher specializes in planting. d. exchange, but only Brandon will gain from the exchange.

gain from exchange if Brandon specializes in planting and Christopher specializes in plowing.

If the demand for a good is perfectly​ elastic, the price elasticity of demand is​ ________ and the demand curve is​ ________. a. infinite; horizontal b. zero; vertical c. infinite; vertical d. zero; horizontal

infinite; horizontal